Artificial intelligence (AI) adoption is experiencing a significant global surge, with one in six people now using generative AI tools. However, this rapid advancement is simultaneously widening the digital divide, creating a stark contrast between developed and developing nations in terms of access and utilisation.
Key Takeaways
- Global AI adoption increased by 1.2 percentage points in the latter half of 2025.
- Nations in the Global North show significantly higher AI adoption rates (24.7%) compared to the Global South (14.1%).
- Early investors in digital infrastructure, AI skilling, and government adoption continue to lead.
- The US leads in AI infrastructure and model development but lags in widespread usage compared to smaller, AI-focused economies.
- Emerging AI platforms like DeepSeek are gaining traction, particularly in underserved markets, highlighting geopolitical competition.
The Widening Gap
Reports indicate that AI adoption in the Global North, comprising developed nations, stands at 24.7% of the working-age population. In stark contrast, the Global South, encompassing developing and least developed countries, shows a much lower adoption rate of 14.1%. This disparity is attributed to factors such as investment in digital infrastructure, AI skilling initiatives, and government-led AI adoption strategies. Countries like the United Arab Emirates, Singapore, Norway, Ireland, France, and Spain are leading the way due to their proactive investments.
Leading Nations and Emerging Trends
The United Arab Emirates continues to lead globally with 64.0% of its working-age population using AI tools. While the United States excels in AI infrastructure and frontier model development, its AI usage rate among the working population (28.3%) falls behind smaller, more digitised economies like Ireland (44%) and New Zealand (40.5%). South Korea has shown remarkable growth, climbing seven spots in global rankings due to government policies and improved AI capabilities in the Korean language.
A parallel development is the rapid rise of platforms like DeepSeek, an open-source AI model gaining traction in markets traditionally underserved by major tech providers. Its success, particularly in China and across Africa, underscores a growing competition between the US and China in promoting their respective AI models globally. This trend highlights how accessibility factors, such as open-source availability and free access, can significantly influence AI diffusion.
Challenges in Developing Economies
While AI offers transformative potential, developing nations face significant hurdles. The World Bank's Digital Progress and Trends Report 2025 highlights that although AI-related job postings have risen faster in middle-income countries than in high-income ones, most AI innovations remain concentrated in wealthier nations. Low and middle-income countries are increasingly adopting 'small AI solutions' – practical, localised applications that run on everyday devices. However, challenges like limited internet access, affordability of data plans, and a lack of digital skills persist. For instance, a five-gigabyte broadband plan can consume nearly 30% of monthly income in low-income countries, compared to less than 3% in high-income nations.
Enterprise Adoption and Future Outlook
Within enterprises, AI adoption is becoming more integrated into workflows, moving beyond initial experimentation. Businesses are increasingly leveraging AI for automation, with API usage showing a strong preference for task delegation over collaborative interaction. However, the effectiveness of AI deployment in complex domains is often constrained by the availability of appropriate contextual information, necessitating organisational restructuring and data infrastructure investments. The cost of AI deployment appears to be a less significant factor than model capabilities and the economic value of automation for early adopters. As AI continues to evolve, policymakers and business leaders face the critical task of ensuring its benefits are distributed equitably, preventing a further widening of the global digital divide and fostering inclusive economic growth.