UAE at Forefront of Global AI Adoption: Insights from AI Diffusion Report

Published Date : 05/11/2025 

The Microsoft AI Economy Institute’s “AI Diffusion Report” reveals the UAE and Singapore as global leaders in AI adoption, while countries like Pakistan lag behind due to infrastructure and skills challenges. 

According to the report, artificial intelligence has become the fastest-adopted technology in human history, with over 1.2 billion people using AI tools in less than three years.

The Microsoft AI Economy Institute’s “AI Diffusion Report” has revealed striking disparities in the global adoption of artificial intelligence, identifying the United Arab Emirates (UAE) and Singapore as global frontrunners, while countries like Pakistan continue to lag far behind due to infrastructure, connectivity, and skills challenges.

According to the report, artificial intelligence has become the fastest-adopted technology in human history, with over 1.2 billion people using AI tools in less than three years. However, the benefits of this rapid expansion are not being shared evenly across the world. The Global North now records an average AI adoption rate of 23%, nearly double that of the Global South, which stands at 13%.

The findings show that UAE and Singapore have emerged as global leaders in AI diffusion, with 59.4% and 58.6% of their working-age populations using AI, respectively. Both nations have achieved this success through long-term investment in digital infrastructure, education, and policy coordination. Their approach demonstrates that even countries without frontier-level AI model development can still lead in adoption by building strong foundational capabilities in connectivity, digital literacy, and governance.

In contrast, Pakistan remains among the lower-performing countries in AI diffusion. Despite a growing tech-savvy youth population and increased mobile connectivity, Pakistan’s AI adoption remains below 10%, reflecting broader structural barriers. The report links this slow progress to limited access to reliable electricity, low digital literacy, and insufficient AI infrastructure, including data centers and computing resources. These challenges mirror wider regional disparities in South Asia and Sub-Saharan Africa, where many countries face similar obstacles to digital participation.

The report emphasizes that AI adoption is directly tied to GDP, infrastructure, and education levels. Nations that have prioritized high-speed internet access, computer literacy, and STEM education—such as Singapore—are now reaping the rewards of widespread AI integration in both the public and private sectors. By contrast, countries like Pakistan struggle to build the same enabling environment for innovation, limiting their ability to benefit from emerging AI technologies in areas such as healthcare, agriculture, and public administration.

Language also plays a significant role in shaping AI access. The report notes that nations with low-resource languages, including Urdu and other South Asian languages, face additional hurdles as most AI tools and models remain optimized for English and a handful of high-resource languages. This creates a linguistic barrier, restricting equitable access even for populations that have connectivity.

While the U.S. and China continue to dominate AI infrastructure—hosting 86% of the world’s data center capacity—the UAE and Singapore have demonstrated that smaller nations can still achieve digital leadership through strategic investment and inclusive policy frameworks. Their early and sustained focus on digital skills and government-led transformation programs has made AI a mainstream tool in business, governance, and everyday life.

The AI Diffusion Report concludes that economic readiness, digital infrastructure, and language inclusivity are now the most decisive factors determining who benefits from the AI revolution. Without urgent investment in these areas, countries like Pakistan risk falling further behind, widening the digital divide between the Global North and South.

Ultimately, the report presents a clear message: while AI is spreading faster than any technology in history, the next phase of progress will depend on equitable diffusion—ensuring that every nation, regardless of income or language, can participate in the AI-powered global economy. 

Frequently Asked Questions (FAQS): 

Q: What is the AI Diffusion Report?

A: The AI Diffusion Report is a study conducted by the Microsoft AI Economy Institute that examines the global adoption of artificial intelligence, highlighting disparities between different regions and countries.

Q: Which countries are leading in AI adoption?

A: The United Arab Emirates (UAE) and Singapore are leading in AI adoption, with 59.4% and 58.6% of their working-age populations using AI, respectively.

Q: Why is Pakistan lagging in AI adoption?

A: Pakistan is lagging in AI adoption due to limited access to reliable electricity, low digital literacy, and insufficient AI infrastructure, including data centers and computing resources.

Q: How does language affect AI access?

A: Nations with low-resource languages, such as Urdu, face additional hurdles in AI access because most AI tools and models are optimized for high-resource languages like English.

Q: What are the key factors for successful AI adoption?

A: The key factors for successful AI adoption include economic readiness, robust digital infrastructure, and language inclusivity, as highlighted in the AI Diffusion Report. 

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