Only one in four Spanish companies has good digital health in 2026, while 39% sit at an average level and 35% are poor, according to Zoho’s new Digital Health Study in Europe. The study assesses the practices of surveyed companies in digital transformation and how effectively they manage their digital foundations in areas such as innovation, adoption of new technologies, platform stability, IT management, AI ROI, and data sovereignty.
Large Spanish companies perform better in digital health, with 35% rated as having good digital health. This figure stands above 21% among medium-sized companies and 20% among small ones. Compared with other European markets analyzed, Germany records the highest share of companies with good digital health, at 37%, followed by the United Kingdom at 35%. Spain sits at 25%, ahead of France at 24% and the Netherlands at 14%. This latter market also records the largest share, at 49%.
Spanish companies are already seeing ROI from AI in key business functions, but the study suggests that weak digital foundations could limit future progress. Among Spanish companies with good digital health, 99% report a positive ROI from AI in automation and efficiency, versus 46% for those with poor digital health. In data analytics, the gap is also significant: 95% of companies with good digital health report a positive ROI, compared with 50% of those with poor digital health.
“Solid digital foundations pay off time and again, and this is especially evident when we talk about AI. The results across Europe, including Spain, show that companies with good digital health achieve higher returns on their technology investments and ensure that these investments contribute directly to business performance. Spanish companies are already seeing AI ROI in areas such as data analytics, automation, and customer insights, but there is no room for complacency. Those who invest strategically in the foundations (centralized data, integrated systems, efficient processes, strong governance, and a clear understanding of data sovereignty) will be better positioned to turn AI from an emerging opportunity into a long-term competitive advantage, explains Sridhar Iyengar, CEO of Zoho in Europe.
AI ROI Is Already Visible in Spain
Spanish companies are already reporting positive ROI from next-generation AI and agent AI in a range of business-specific functions. The strongest results are seen in data analytics, where 72% of Spanish companies report a positive ROI, followed by automation and efficiency, with 70%, customer knowledge, with 69%, and overall improvement of business functions, also at 69%. However, the study shows a clear split between companies with good and poor digital health.
Among Spanish companies with good digital health, 99% report a positive ROI from AI in automation and efficiency, versus 46% of those with poor digital health. In data analytics, the gap is also meaningful: 95% of companies with good digital health report a positive ROI, vs. 50% of those with poor health.
This trend also shows up in how Spanish companies strategically view AI. Overall, 35% of Spanish firms say they plan to invest heavily in AI, while 27% report piloting AI and seeing some success. Only 14% consider AI already critical to their business. Yet, among companies with good digital health, this figure rises to 38%, compared with just 5% among those with poor digital health, a gap of more than sevenfold.
“From our experience with digital transformation processes in Spanish SMEs, one of the main barriers to advancing digital maturity is cultural and organizational. Many companies still view process definition, standardization, or normalization as a loss of agility, when in fact these are necessary steps to continuously improve and better leverage technology. Digital transformation creates more value when it starts from clear objectives, well-defined processes, and a well-governed data foundation, but also when the organization understands that the path may require adjustments and learning. In this context, AI should not be seen as a magical fix, but as an enabler of efficient and mature processes. Without solid digital health foundations, technology alone cannot compensate for a lack of prior organization, explains Alfonso García, Director of Innovation and Technology at Keapps, a Zoho client.
Integration Remains the Main Barrier to AI Adoption
The principal challenge Spanish companies face in integrating AI effectively is the difficulty of connecting it to existing systems, cited by 21% of respondents. Trailing are the shortage of specialized talent, at 20%; ethical and regulatory risks, at 18%; budget constraints or ROI uncertainty, at 16%; and lack of a clear strategy or defined use cases, also at 16%. This integration challenge is especially visible among large Spanish companies, where 28% name the difficulty of integrating AI with existing systems as the main barrier, compared with 19% of small firms and 16% of midsize ones.
Companies remain optimistic about business conditions despite uncertainty. The 85% of digital decision-makers surveyed in Spain who say they are optimistic about business conditions in the coming year are just below the European average of 86%. Looking ahead three years, 83% of Spanish companies are optimistic, and 84% maintain that positive long-term outlook.
At the same time, companies continue to manage cost pressures. The 44% who say they have seen costs per employee rise over the past year, while 18% report cost erosion—defined as receiving less service, functionality, or value for the same cost or more. Yet, 28% say they have reduced costs, above the European average of 22%.
Among those who have experienced cost increases or cost erosion, 34% are reevaluating their supplier base, above the European average of 28%. Another 32% say they are cutting costs in other areas of the business to maintain the same level of quality offered to customers, while 15% say they can no longer offer the same level of service as before.
Customer Experience and Buying Priorities in Spain
Efficiency is the top benefit Spanish companies want to gain from digital transformation, cited by 49% of respondents. Following are improved customer experience at 38%; automation at 34%; and competitive advantage or differentiation at 28%. However, Spanish firms also identify barriers to delivering a good customer experience. The most cited issue is the inability to see the entire customer journey across touchpoints and departments, mentioned by 21% of respondents in Spain. This figure is above the European average of 17%.
When choosing a new digital tool or cloud software application, price or cost is the most important factor for Spanish companies, at 29%. However, they also emphasize the savings generated once the tool is in place, at 21%, and the company’s positioning as an innovator, at 20%. Spain is the market where this innovation positioning carries the most weight as a buying criterion, compared with a European average of 15%.
Digital Tools and Flexibility Remain Key to the Employee Experience
The employee experience remains a central part of the digital health conversation. 87% of Spanish companies say their approach to the employee experience has changed in recent years, while 98% consider digital tools and technology important for the employee experience.
When asked how they keep the workforce motivated in times of economic difficulty, 42% of Spanish companies cite greater flexibility in their work model, slightly above the European average of 40%. Another 40% say they provide the right technological tools to help employees achieve their goals and improve their experience, while 38% report clear communication about business goals and what is expected in each role.
Data Sovereignty Becomes a Strategic Consideration
Data sovereignty is already a key factor when Spanish companies choose digital tools and platforms. 41% of Spanish firms say data sovereignty is essential, meaning their provider must be able to host data in local or regional data centers. Another 42% consider it important and prefer providers capable of hosting data in local or regional data centers.
In total, 83% of Spanish companies say data sovereignty is an essential or important factor when choosing a digital provider. Among those for whom data sovereignty plays a relevant role, 64% say they would not want their data stored in another country.
“Data sovereignty has moved from the compliance team to the board agenda. European companies are now asking tough questions of providers about where their data is hosted, and they are moving away from providers that cannot answer clearly. At Zoho, we have always believed that customer data belongs to the customer, not to us or advertisers. We operate our own data centers, including two in Europe, because we understand that trust in data is the cornerstone of any lasting vendor relationship. Companies that will succeed in the long term are those that treat data governance with the same seriousness as product quality,” says Sridhar Iyengar, CEO of Zoho Europe.
