Digital companies in Hungary
How are Hungarian firms performing in terms of digitalisation compared to their EU competitors? That’s the question GKI’s analysis aims to answer.
This article is available for reading in Trade magazin 2024/10
Enterprise management systems facilitate the flow of information within companies, improve data quality and contribute greatly to the efficient functioning of firms. Similar solutions are used by 35% of Hungarian firms compared to 43% in the EU. Domestic companies also have room for improvement in terms of online presence. According to European Commission data, 32% of businesses in the EU use at least two types of social platforms, but only 17% of Hungarian companies do so.
Companies are still wary of AI
The speed with which domestic firms are adapting to new technological challenges is shown by the willingness to adopt AI technology, which has developed rapidly in recent years. By 2023 8% of EU companies have used some form of AI-based solution, but only 3.7% of Hungarian firms have done so. By their own admission, Hungarian businesses planning to implement AI typically don’t yet use AI due to a lack of expertise and high expected costs. In terms of online sales Hungary is doing quite well: 23% of companies’ net sales in Hungary come from the online channel, so we are ahead of the 18% rate in the EU. We are also better than the EU average in the proportion of SMEs selling online (21.8% compared to 19.1%).
Digital Intensity
The Digital Intensity Index of the European Commission is a complex indicator that attempts to capture the level of digitalisation at companies in different countries, in part based on the indicators presented above. This index reveals that the level of digitalisation at domestic businesses lags behind the EU average. Although Hungary’s numbers are the best in a regional comparison, let’s not forget that Central and Eastern European countries are typically in the lowest performing third in EU terms. //
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