The report by Microsoft and AI Economy Institute argues that a technology's impact comes not from its invention, but from its diffusion—the process of it being adopted and integrated into society. AI is the fastest-spreading technology in history, attracting over 1.2 billion users in less than three years.
However, its benefits are not spreading evenly. The core problem is a significant "AI divide" between the Global North (where adoption is roughly double) and the Global South. The report warns that without focused effort, this gap will define who benefits from AI for decades.
AI adoption—surpassing a billion users in under three years—illustrates a speed of diffusion that few earlier technologies, such as the radio, Internet, or smartphone, have matched.
The UAE (59.4%) and Singapore (58.6%) lead in AI use among working-age adults
AI diffusion and GDP
AI diffusion by country
Key Takeaways
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Fastest Adoption, Biggest Barriers: AI is the fastest-adopted technology in history (1.2B users), but it will hit a wall as it confronts the 4 billion people who lack the basic building blocks (electricity, internet).
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A Stark North-South Divide: AI adoption in the Global North (23%) is nearly double that of the Global South (13%). This divide correlates strongly with GDP per capita.
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Infrastructure is Hyper-Concentrated: The U.S. and China dominate the frontier and infrastructure, creating a global dependency.
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Diffusion Leaders Show the Way: Countries like the UAE and Singapore prove that strategic investment in skills, infrastructure, and policy can create world-leading AI adoption, even without being a frontier-level developer.
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The Frontier is Narrowing: While few countries build elite models, the performance gap between them is shrinking, suggesting frontier capabilities are also diffusing (albeit slowly) among developed nations.
Full report here