NAIROBI, Kenya- A new global report by Microsoft has revealed a growing divide in artificial intelligence adoption between developed and developing countries, with nations in the Global North embracing AI at twice the pace of those in the Global South.
The findings, published by Microsoft’s AI Economy Institute, show that while generative AI use is expanding worldwide, access and uptake remain uneven — largely shaped by digital infrastructure, affordability and national policy choices.
Global AI Use Is Growing — But Unevenly
According to the report, global diffusion of generative AI tools rose by 1.2 pc in the second half of 2026, with data showing that one in six people worldwide were using AI-powered products by the end of 2025.
However, adoption rates in advanced economies far outpaced those in emerging markets.
While some African countries in Southern Africa — including South Africa, Namibia and Botswana — and parts of North Africa such as Libya, Algeria and Egypt recorded above-average AI use, much of East and West Africa lagged behind global averages.
Kenya Leads East Africa, But Trails Global Average
Kenya emerged as the regional leader within the East African Community (EAC), despite still falling well below the global average.
Microsoft’s data shows Kenya’s AI usage stood at 7.8 pc in the first half of 2025, rising modestly to 8.1 pc in the second half of the year. By comparison, the global average AI diffusion rate was 16.3 pc.
Across the region, AI use remained relatively low, with the Democratic Republic of Congo recording 7.8 pc, while Somalia, Uganda, Tanzania, South Sudan and Burundi each stood at 6.8 pc. Rwanda posted the lowest rate in the bloc at 6.3 pc.
Globally, the United Arab Emirates topped the rankings with a staggering 64.0 pc AI adoption rate, followed by Singapore (60.9 pc) and Norway (46.4 pc).
“Nations that have invested early and consistently in digital infrastructure continue to lead,” the AI Economy Institute noted.
Open-Source AI Driving Uptake in Developing Economies
Microsoft’s report highlights open-source and free-to-use AI tools as a major driver of adoption in developing countries.
Chinese-owned chatbot DeepSeek was singled out for gaining rapid traction in emerging markets due to its completely free web and mobile access, removing subscription and payment barriers common with Western platforms.
“This combination of openness and affordability allowed DeepSeek to gain traction in markets underserved by Western AI platforms,” the report stated.
The AI Economy Institute also credited the UAE’s continued leadership to clear governance frameworks, sustained policy focus and regulatory pragmatism, positioning it as a global model for AI adoption at scale.
