Microsoft report highlights rapid growth driven by strong digital infrastructure and investment
Dubai: The UAE has ranked first globally in artificial intelligence adoption, with a usage rate of 70.1% among the working-age population in the first quarter of 2026, according to the Microsoft AI Diffusion Report Q1 2026.
The report, issued by the Microsoft AI Economics Institute, found that the UAE is the first country to exceed the 70% threshold in the adoption and use of AI tools, ahead of advanced economies including Singapore, Norway, Ireland and the United Kingdom.
Accelerated growth
The report showed that AI adoption in the UAE has grown rapidly, rising from 59.4% to 64%, and then to 70.1% within a short period. This reflects the increasing use of smart technologies across work, education and daily life.
Data indicated that the UAE’s usage rate is more than four times the global average, which stood at about 17.8% during the same period.
Strong digital readiness
Microsoft attributed this performance to continued investment in digital infrastructure, the expansion of cloud computing services, the development of digital skills, and government policies supporting innovation and artificial intelligence.
The report noted that the UAE has built an integrated technological environment in recent years, helping accelerate the adoption of AI tools across institutions, businesses and service sectors.
Rising investments
This progress comes amid growing investment in artificial intelligence, data centres and cloud computing. Microsoft has previously announced plans to invest in the UAE to enhance digital infrastructure and expand AI capabilities in the coming years.
These investments have improved access to smart tools for individuals and businesses, contributing to the increasing integration of AI into daily operations.
Global gap remains
The report highlighted a clear gap between advanced and developing economies in AI adoption. It noted that limited digital infrastructure, weaker internet connectivity and a lack of technical resources continue to hinder adoption in many countries.
Adoption rates in high-income nations are growing significantly faster than in emerging markets, creating a global challenge in ensuring more inclusive and equitable access to AI.
Shift towards economic impact
According to the report, the next stage will focus on measuring the economic and productivity impact of artificial intelligence rather than just adoption rates.
Countries with high levels of adoption are expected to benefit more from automation, improved productivity and enhanced service delivery.
The report concluded that the UAE has moved beyond testing AI tools to fully integrating them into economic, professional and educational activities, strengthening its position as one of the world’s leading digital economies.
