Digitalization of the economy in Albania remains partial - Businesses slowly adopt new technologies, while the use of AI is still limited
Albania is making progress in internet usage and digital infrastructure, but it lags behind in digital skills and business adoption of technology.
According to the latest report on the Digital Economy and Society Index for the Western Balkans, in 2024 around 86% of the population will use the internet, a high level and close to the regional average. However, this does not translate into sufficient digital skills.
Only 23% of citizens have basic digital skills, far below the regional average and far behind the European Union. While those with above-basic skills are only around 8%. The number of technology specialists also remains low, around 1% of the workforce.
On the other hand, businesses are showing more interest in training, with about 22% of them investing in digital skills training for employees.
In infrastructure, the situation is more positive. 98% of households have access to the internet, while the use of high-speed fixed lines has increased significantly. About 43% of households use internet over 100 Mbps.
However, the most advanced technologies remain limited. Ultra-fast internet above 1 Gbps is used by a very small proportion of households, and the 5G network is still in its early stages, despite the start of spectrum allocation at the end of 2024.
As for businesses, around 41% of small and medium-sized enterprises have reached a basic level of digitalization, but this is still below the regional and EU average.
The use of advanced technologies such as cloud, data analytics and artificial intelligence is gradually increasing, but remains limited. Only 9% of businesses use artificial intelligence.
In conclusion, Albania has made significant progress in internet penetration and infrastructure investments, but the main challenge remains increasing the digital skills of citizens and the wider use of technology by businesses.
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