UAE leads the world in AI adoption as global divide widens

If it feels like everyone in Dubai is using ChatGPT to write their emails or plan their weekends, it's because they probably are.

A new report released in January 2026 by the Microsoft AI Economy Institute confirms the UAE has maintained its position as the global leader in AI adoption. In the second half of 2025, 64% of the country's working-age population used generative AI. That is a massive number.

But while we sit comfortably at the top, the data reveals a worrying trend elsewhere: the digital divide is getting worse, not better.

Key Takeaways: UAE AI Adoption Insights

• UAE is #1: 64% of the working-age population used AI in H2 2025, up from 59.4%.
• The gap is widening: Adoption in the Global North grew twice as fast as the Global South.
• South Korea surged: Jumped seven spots to 18th place thanks to better Korean language support in GPT-5.
• Open source is rising: DeepSeek is dominating markets priced out by Western tech, specifically in Africa and China.

The Numbers Behind UAE's AI Adoption Lead

The report tracks "AI diffusion"—essentially, the share of people who used a generative AI product. The UAE didn't just win; it extended its lead. We are now more than three percentage points ahead of second-place Singapore.

Here is how the top players stack up:

It is worth looking at the US figure. Despite being the home of OpenAI, Google, and Microsoft, the US sits at 24th place. Innovation does not always equal adoption.

Why It Matters for UAE

This isn't an accident. While other governments were still trying to define what AI was, the UAE appointed the world's first Minister of State for Artificial Intelligence, Omar Sultan Al Olama, back in 2017.

That head start is paying off. The government launched a national strategy covering nine priority sectors and created regulatory "sandboxes" to let companies test tech without drowning in red tape. This aligns with broader efforts we've seen, like the UAE government's push for digital sovereignty through local cloud infrastructure.

The result is trust. The 2025 Edelman Trust Barometer puts UAE trust in AI at roughly 67%. In the US? It is just 32%. We are simply less afraid of the tech here.

The Widening Global Divide in AI Adoption

The report isn't all good news. It highlights a "widening digital divide." The Global North (wealthier nations) is adopting AI twice as fast as the Global South.

The gap widened to 10.6 percentage points in late 2025. Basically, the countries that already have the money and infrastructure are speeding ahead, leaving everyone else to play catch-up.

The Players: Korea and DeepSeek

Two other stories stand out in the data.

First, South Korea. They jumped from 25th to 18th place in just six months. Why? Because the tech finally learned to speak their language. OpenAI's GPT-4o and GPT-5 models drastically improved performance on Korean benchmarks, moving from "below adult reading proficiency" to "top-tier college student" levels.

Second, DeepSeek. This is an open-source platform that's free. Because it doesn't require a credit card or a subscription, it is exploding in markets that Western companies often ignore or price out.

DeepSeek has grabbed 89% market share in China and is seeing usage rates in Africa that are two to four times higher than other regions. It is a reminder that if you make tech free and accessible, people will use it—regardless of where it comes from.

What's Next

For the UAE, the challenge will be maintaining this lead as saturation hits. You can't get much higher than 64% without elderly populations and infants signing up for ChatGPT.

Globally, the focus shifts to access. If the Global South continues to lag, we aren't just looking at a tech gap, but an economic one that could last decades.

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