A new report from Microsoft examines which countries are most proficient in implementing AI
A new report from Microsoft examines which countries are most proficient in implementing AI
A new report from Microsoft examines which countries are most proficient in implementing AI
A new report from Microsoft examines which countries are most proficient in implementing AI

AI diffusion: UAE and Singapore lead the way, Microsoft says


Cody Combs
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  • Arabic

The UAE, Singapore, Norway, Ireland and France received some of the highest scores for AI adoption, a report from Microsoft's AI Economy Institute has found.

Microsoft spotlights the UAE and Singapore for “leading in AI use among working-age adults, reflecting their long-term investment in digital connectivity and skills”.

Adoption of AI and adaptation to its use is known as diffusion. One of the major factors in high AI usage, the report said, was countries investing heavily in digital infrastructure and education.

A new report from Microsoft indicates which countries have been most successful in the adoption of and adaption to AI technology.
A new report from Microsoft indicates which countries have been most successful in the adoption of and adaption to AI technology.

In terms of AI models, the US leads the way with OpenAI's GPT-5, which the report said “remains at the frontier”, and China trailing close behind with DeepSeek.

The analysis shed more light on growing concerns of an AI adoption gap that could leave many countries behind.

A lack of infrastructure and sparse education opportunities were cited as factors causing sub-Saharan Africa and parts of Asia to trail behind.

The research indicated a lack of reliable electricity, which leaves many unable to “fully participate in the digital economy”, was also strongly correlated to countries with lower AI adoption rates.

Even if reliable electricity were not a problem in those countries, Microsoft pointed out that data centres, which are increasingly important to train and run AI large language models, “are concentrated in the Global North, and only a handful exist in the Global South”, creating another obstacle for countries hoping to participate in the much-discussed AI economy.

“Today's map shows a clear divide,” Microsoft's president and vice chairman Brad Smith said, adding that his hope was for the report to assist in making “AI work for every language and community”.

The company's report also noted that despite efforts in recent years to make AI models inclusive from a language standpoint, there is still a significant gap to close.

Microsoft says data centres, which are increasingly important for AI infrastructure, are still largely located in the Global North. Photo: Microsoft
Microsoft says data centres, which are increasingly important for AI infrastructure, are still largely located in the Global North. Photo: Microsoft

Estimates show only 4 to 5 per cent of the world's population speaks English as a first language. But about half of the “open web” is in English, increasing the likelihood of certain AI bias and potentially leaving other languages behind.

“The result is a systemic barrier,” the report said, before adding that some languages are vastly underrepresented.

“Swahili, which is spoken by over 200 million people, has over 500 times less digital content than German,” Microsoft said.

Ms Yang's top tips for parents new to the UAE
  1. Join parent networks
  2. Look beyond school fees
  3. Keep an open mind
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5. Zakat 

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Global state-owned investor ranking by size

1.

United States

2.

China

3.

UAE

4.

Japan

5

Norway

6.

Canada

7.

Singapore

8.

Australia

9.

Saudi Arabia

10.

South Korea

The candidates

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Lord Smith, former Cabinet minister

Sandi Toksvig, broadcaster

 

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Updated: November 01, 2025, 4:34 AM