Microsoft's 2025 AI Diffusion Report reveals a growing divide in artificial intelligence adoption, with Global North usage expanding twice as fast as the Global South, while UAE emerges as the global leader.

The latest Microsoft AI Diffusion Report paints a complex picture of global artificial intelligence adoption, revealing both rapid advancement and stark geographical disparities. According to findings released today, AI usage among working-age adults in the Global North expanded at nearly double the rate observed in Global South nations throughout 2025. Standing atop the adoption leaderboard is the United Arab Emirates, where 64% of working-age citizens now actively engage with AI tools.
This comprehensive study tracks adoption across productivity tools, creative applications, and specialized industry solutions. While overall global adoption continues rising, the acceleration gap between regions highlights structural challenges. Developed economies benefited from existing digital infrastructure, corporate investment in AI upskilling, and regulatory frameworks enabling rapid integration. Meanwhile, many developing nations faced barriers including limited broadband access, skills shortages, and economic constraints slowing implementation.
The UAE's leadership position stems from a multi-year national strategy. Since launching its National AI Strategy 2031, the Emirates has invested heavily in smart city infrastructure, AI education pipelines, and regulatory sandboxes encouraging enterprise adoption. Dubai's recent mandate requiring AI integration across all government services by 2026 exemplifies this commitment. Other Gulf Cooperation Council nations followed similar trajectories, with Saudi Arabia and Qatar also ranking among the top adopters globally.
The report identifies three primary drivers behind regional disparities:
- Infrastructure Readiness: 5G coverage and cloud computing access remain concentrated in North America, Europe, and advanced Asian economies
- Skills Development: Formal AI training programs in the Global North reached 3x more workers than comparable Global South initiatives
- Regulatory Environment: Progressive AI governance frameworks accelerated deployment in regions like the EU and UAE
Despite the gap, emerging markets show promising growth vectors. Microsoft notes increased adoption in India's financial services sector, Brazil's agricultural technology applications, and Nigeria's healthcare diagnostics tools. These point-of-need implementations often bypass traditional infrastructure limitations through mobile-first solutions.
The implications extend beyond technology access. As AI becomes embedded in economic productivity, nations trailing in adoption risk widening GDP gaps. The report suggests targeted interventions: public-private partnerships for AI infrastructure in developing regions, open-source tool localization, and workforce transition programs. With AI projected to contribute $15.7 trillion to the global economy by 2030 according to PwC research, these disparities represent both a challenge and opportunity for balanced technological advancement.
Microsoft's methodology combined usage data from enterprise software deployments, consumer application analytics, and survey responses from 38,000 participants across 35 countries. The full AI Diffusion Report 2025 is accessible via Microsoft's Corporate Responsibility portal.

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