Global AI Diffusion: Q1 2026 Trends and Insights [pdf] (www.microsoft.com)

The first quarter of 2026 marked a notable rise in global AI adoption, with usage among the working-age population increasing to 17.8%, driven significantly by advancements in AI capabilities, particularly in Asia. Countries like South Korea, Thailand, and Japan emerged as leaders in AI diffusion, showing growth rates above 30%. China remains a key player with substantial usage, while the UAE topped the national AI leaderboard at 70.1%. Despite this progress, the report highlighted a widening AI usage gap between the Global North and South, with Northern economies seeing a usage rate of 27.5% compared to only 15.4% in the South. Such disparities suggest significant systemic challenges in digital infrastructure and skills in the Global South. The report also emphasized the rapid scaling of AI coding capabilities, with tools like OpenAI's Codex and Microsoft's GitHub Copilot contributing to a 78% year-over-year increase in software development activity. In Japan, improved support for local languages has helped enhance AI performance on professional examinations, showcasing the models' growing proficiency in non-English tasks. However, while organizations are increasingly moving from pilot programs to scaled deployment, the long-term labor market implications of AI-assisted coding remain uncertain. These trends indicate that as nations harness AI’s potential, the resulting inequalities could further complicate global technology adoption dynamics.