Microsoft’s AI Economy Institute has released its AI Diffusion Report for H2 2025, showing global adoption of generative AI tools reached 16.3% of the world’s population by late 2025 (up from 15.1% in H1 2025), while also highlighting a widening digital divide between the Global North and Global South.

The report notes that the UAE leads adoption for the working-age population (around 64%), and that AI adoption in developed nations is growing much faster than in developing economies—expanding the gap to a 10.6% higher adoption rate for the Global North.

It also highlights the quiet rise of DeepSeek in underserved markets, with significantly higher usage across parts of Africa and other regions, supported by factors such as broader availability, affordability, and partnerships (including distribution dynamics tied to device ecosystems).

Why it matters: Leadership in AI model capability and infrastructure does not automatically translate into broad population-level adoption. The data suggests that accessibility and distribution can be as decisive as capability in shaping global AI diffusion—and may influence long-term competitiveness and geopolitical influence.