Austria’s progress in digitalisation, which improved at the start of the Covid pandemic, has slowed in recent years, according to the “Digitalisation Index 2024” report.

The study, commissioned by the telecom company Drei, shows that while larger businesses have moved forward, smaller ones are struggling. Key issues include a lack of knowledge and bureaucratic barriers.

Drei CEO Rudolf Schrefl said more education and advice is needed, as bigger companies can better manage the complex rules and regulations.

The report also looked at the growing use of Artificial Intelligence (AI) in Austrian businesses. About 8% of companies now use AI, mainly for customer communication, and its use is expanding to areas like text creation, chatbots, and image editing. However, 74% of businesses do not believe AI will cut staff costs, despite its potential to boost efficiency. “AI can really help the Austrian economy,” Schrefl said, calling for wider use.

The study also noted that cloud computing is still underused in Austria, with 50% of companies saying it’s not relevant to them. Just 10% of companies are using the Internet of Things (IoT) to connect devices to the internet. Schrefl highlighted that the demand for business advice has never been higher and urged the new government to focus on these needs.

The “Digitalisation Index 2024” was based on phone interviews with 810 Austrian companies, conducted between May and July 2024. The research was carried out by consulting firm Arthur D. Little and market research company marketmind.