Today we published our latest Global AI Diffusion Report. The global adoption of artificial intelligence continued to rise in the first quarter of 2026. During the quarter, AI usage increased by 1.5 percentage points from 16.3% to 17.8% of the world’s working age population. Intensity of use among economies with the highest rates of AI diffusion also increased, with 26 economies now exceeding 30% of the working age population using AI.

At the top of Microsoft’s National AI Leaderboard, the UAE continued to lead global AI diffusion at 70.1%. The United States finally started to move up the national rankings, albeit only from 24th to 21st based on a 31.3% usage rate by the working age population.

Notable developments in the quarter included accelerating AI adoption in Asia driven in part by improving AI capabilities in Asian languages. South Korea, Thailand, and Japan saw the greatest movement. More broadly, the quarter brought continued widening of the AI gap between the Global North and South, with usage now at 27.5% in the North and 15.4% in the South. These trends are discussed below, including a deeper dive on the positive impact of enhanced multilingual AI capabilities in Japan.

To track all these trends, we continue to measure AI diffusion as the share of people worldwide between ages 15 and 64 who have used a generative AI product during the reported period. This measure is derived from aggregated and anonymized Microsoft telemetry and adjusted to reflect differences in OS and device-market share, internet penetration, and country population. Additional details on the methodology are available in our AI Diffusion technical paper.^[1]

No single metric is perfect, and this one is no exception. Through the Microsoft AI Economy Institute, we continue to refine how we measure AI diffusion globally, including how adoption varies across countries in ways that best advance priorities such as scientific discovery and productivity gains. For this report, we rely on the strongest cross-country measure available today, and we expect to complement it over time with additional indicators as they emerge and mature.

Sectorally, the quarter saw strengthened AI coding capabilities leading to a dramatic increase in production of software code. This was reflected in production by Anthropic’s Claude Code, the OpenAI’s Codex, and Microsoft’s GitHub Copilot. Git pushes – through which software developers put coding changes online – increased 78% year over year globally. Interestingly, the quarter brought added evidence that, at least for now, AI coding capabilities may be increasing demand for the employment of software developers.

As discussed in more detail in the report, when developer productivity increases, the cost of building software declines. If demand for software is elastic, organizations can respond by building more software across a wider range of use cases. It is still too early to know the full labor-market impact of AI-assisted coding, but the available data shows that in 2025, total U.S. software developer employment reached approximately 2.2 million, rising 8.5% year over year and marking a record high for the profession. Early data for the first quarter of 2026 shows that software developer employment in March 2026 was about 4% higher than in March 2025.

Download the latest Global AI Diffusion report. and explore the data here.

 

[1] A. Misra, J. Wang, S. McCullers, K. White, and J., L. Ferres, “Measuring AI Diffusion: A Population Normalized Metric for Tracking Global AI Usage,” Nov. 04, 2025, arXiv: arXiv:2511.02781. doi: 10.48550/arXiv.2511.02781. 

 

The post The state of global AI diffusion in 2026 appeared first on Microsoft On the Issues.

On Tuesday, February 23rd, Microsoft Senior Director of Education and Workforce Policy Allyson Knox testified before the House Education & Workforce Subcommittee on Early Childhood, Elementary, and Secondary Education. To view the proceedings, visit the committee’s website.

STATEMENT OF ALLYSON KNOX

SENIOR DIRECTOR OF EDUCATION AND WORKFORCE POLICY

MICROSOFT CORPORATION

BEFORE THE

EDUCATION AND WORKFORCE COMMITTEE

SUBCOMMITTEE ON EARLY CHILDHOOD, ELEMENTARY, AND SECONDARY EDUCATION

UNITED STATES HOUSE OF REPRESENTATIVES

“BUILDING AN AI-READY AMERICA: TEACHING IN THE AI AGE”

TUESDAY, FEBRUARY 24, 2026

WASHINGTON, D.C.

Good afternoon and thank you, Chairman Kiley, Ranking Member Bonamici, Members of the Subcommittee for inviting me to testify today. My name is Allyson Knox. I am Senior Director of Education and Workforce Policy at Microsoft, and I am pleased to have this opportunity to discuss issues related to artificial intelligence and its impact on teachers.

Today, I will share insights we have gathered from teachers about their experiences, challenges, and needs as they integrate AI in education; outline the steps Microsoft and other organizations are taking to facilitate this transition; and recommend legislative approaches to help policymakers strengthen these efforts. These legislative approaches include supporting professional development for teachers; encouraging public-private partnerships; promoting AI literacy; providing guidance on responsible AI use; and supporting innovation.

I would like to begin by quoting from Microsoft’s vice-chair and president, Brad Smith, in his recent foreword to Degrees of Change: What AI Means for Education and the Next Generation[i]:

“Generative AI has become the fastest-spreading technology in human history, adopted at a pace that even the most seasoned technologists could scarcely imagine. This speed is breathtaking, but it also compels us to pause and ask, “Are we ready for what comes next?” AI’s promise is extraordinary. It can help solve problems that have challenged humanity for decades—improving health outcomes, advancing education, and unlocking new opportunities for economic growth. But, like every transformative technology before it, AI brings new questions and new responsibilities.”

This thought-provoking quote is apt for today’s conversation on how AI is impacting teachers. The speed of AI adoption in our nation’s schools and classrooms is indeed breathtaking. Just three years ago, AI had barely made a mark in education. However, our 2025 Study on AI in Education found that 80% of U.S. K-12 teachers have used AI in their roles or for school-related purposes at least once or twice and one-fifth report daily use of AI. Additionally, 58% of K-12 teachers think AI usage at their school/district will increase in the next year.[ii]

What we are hearing from teachers on the impact of AI:

The breadth of adoption has been profound. We have heard directly from teachers who are using AI to streamline lesson planning, curriculum development, and personalize student learning in ways that were unimaginable a few years ago.[iii] AI is also reducing the time it takes to carry out administrative tasks, allowing more time for teachers to focus on their students.

Despite these benefits, we know teachers face challenges when it comes to AI in the classroom. We found roughly one in three teachers lack confidence in using AI effectively and responsibly. Many teachers also express concerns about how AI can exacerbate cheating and are worried about issues such as data privacy and student safety.

Teachers know AI is here to stay, and based upon countless surveys, forums, and focus groups, teachers are ready to tackle these challenges and ask for support in three main areas:

1. AI literacy – Teachers want the skills, knowledge, and support to build AI literacy and critical thinking in their students;
2. AI guardrails – Teachers want students to use AI responsibly and safely; and
3. AI tools – Teachers want classroom-ready AI tools and opportunities to provide feedback that improve them.

I’m excited to share a few ways Microsoft, along with many of our partners, are committed to providing teachers with the support they are requesting.

1.AI literacy – Teachers want the skills, knowledge, and support to build AI literacy and critical thinking in their students

At the core of this support is listening to and learning from teachers and understanding what they want and need to become AI literate themselves and teach AI literacy to their students. These conversations have resulted in exciting initiatives, including the recent launch of the Microsoft Elevate for teachers program, part of the company’s broader commitment[iii] to help schools and educators build skills, expand opportunities, and ensure everyone benefits from AI.

Microsoft Elevate for Educators

The Microsoft Elevate for Educators program equips educators and school leaders with access to one of the world’s largest and most connected peer educator networks and offers free professional development resources. It will provide free access to a new industry-recognized credential for educators, developed in partnership with one of the leading national nonprofit focused on technology and innovation (ISTE+ASCD).[vi] This partnership is aligned to the AI Literacy Framework, which is intended to help educators gain confidence and expertise in integrating AI into their teaching and learning. As part of this work, we also support ISTE+ASCD in advancing AI in teacher preparation programs.

National Academy for AI Instruction

Along with OpenAI and Anthropic, we are supporting the National Academy for AI Instruction, through a partnership with the American Federation of Teachers and the United Federation of Teachers. The Academy describes itself as a national training hub designed by educators – shaping the future of AI in public education, grounded in safety and people-first technology, and improving student learning. From everything we have heard from teachers, this is exactly the type of support they need to promote AI literacy. The Academy also focuses on building critical thinking skills for students and educators.

Rob Weil, who heads up the Academy, recently shared an update on their work with me. He noted through direct engagement with teachers, they listen to what the primary concerns teachers have around using AI in the classroom are, and then work with them to design trainings that are directly responsive to their concerns and meet them where they are – including using whatever technology they are already using in their classroom.

Their goal is to train 400,000 teachers over the next 5 years. The Academy is centered around a “train the trainer” model, building capacity to provide AI literacy to teachers at scale – providing the potential of millions of teachers to benefit from this initiative. Weil noted that interest and participation in the Academy has been taking off, largely due to word of mouth. This month, 1,000 teachers showed up for a virtual session, and another in-person session was overprescribed had to turn away a hundred interested teachers.

Why the interest? Teachers want to learn from their peers and trusted partners; they also want to ensure they are using AI effectively and safely. Weil explained that one of the most popular aspects of the training is centered around the Academy’s Commonsense Guardrails for Using Advanced Technology in Schools,[v] which helps empower teachers to address the challenges they are facing in implementing AI. Some teachers describe AI as the wild-wild west, and this guide has helped provide a roadmap for understanding how to navigate bringing this technology into the classroom.

The trainings also provide real-world, hands-on experiences with using technology which teachers themselves are bringing to the table. At the trainings, teachers are asked what they could use the most help with and then have time to experiment with different tools to do things like start a draft of a lesson plan or an outline for a rubric – allowing them more time and flexibility to incorporate their expertise. In addition, the Academy creates opportunities for educators to influence the development of AI for schools.

Support for Special Education Teachers

We also recognize the potential that AI holds to support students with disabilities – and the need to ensure special education teachers have the support and resources to fully unlock this technology.

Recently, we launched a course to support educators in exploring how Microsoft AI tools can be thoughtfully used in special education environments to reduce administrative demands, strengthen accessibility, and support clear communication with families. Throughout the learning path, responsible use of AI, privacy, and transparency are emphasized so educators can determine when and how AI fits into their practice in ways that align with student needs and professional values.

After our engagements, we tailored our trainings to special education teachers by incorporating their direct feedback. Key topics included privacy with sensitive medical information and using AI to assist parents and caregivers in IEP meetings. We emphasized clear communication, parental inclusion, and ensuring parents understand the meeting’s goals and how best to support their children.

Finally, special education involves a collaborative team beyond just teachers, and we’ve revised our approach to address the needs of occupational therapists, physical therapists, and all other members involved in special education.

Support for Teachers in Rural America

We have found there’s a significant gap in daily AI usage by urban teachers versus their rural and suburban counterparts (39% vs. 24%).[iv] This gap underscores why ensuring AI tools, resources, and professional development are attuned to the needs of rural teachers is critical.

For the last five years, we’ve been working with the National Future Farmers of America (FFA) and agricultural science teachers to develop FarmBeats for Students and ensure it is responsive to agricultural science teachers’ needs. We engaged in an iterative process with them – collaboratively designing and building curriculum and training with agricultural science teachers from the very beginning of development.

FarmBeats for Students brings AI to agricultural education through a hands-on educational program that brings precision agriculture directly into the classroom. The program consists of an affordable hardware kit and a free curriculum aligned with rigorous educational standards. Activities give students direct experience with topics like digital sensors, data analysis, and AI.

We brought FarmBeats for Students to the National FFA convention and held a series of workshops with teachers across the country. They experimented with the kits and provided input to ensure this technology was directly responsive to what they wanted to see in the classroom.

In addition to our partnership with the National FFA, Microsoft helps meet the needs of rural teachers by deploying the online content referenced above through Elevate, as well as supporting community-based organizations that help facilitate activities and events which promote AI literacy in rural communities.

AI Literacy Frameworks, Standards, and Guidance

Teachers want frameworks that help them integrate AI into their classrooms. We are pleased there is bipartisan interest in establishing strong frameworks around AI and education, especially highlighting the need for widespread AI literacy. Microsoft has provided support, guidance, and input to organizations and initiatives such as Code.org and TeachAI who work to develop and promote frameworks, guidance, and standards.

Microsoft encourages state and local policymakers to review and leverage these resources as they incorporate AI in education:

• The TeachAI Foundational Policies[vii]: This resource, endorsed by dozens of policy organizations and associations, provides practical guidance for national, state, and local leaders to harness AI’s benefits in teaching and learning while mitigating risks. The policies focus on five priorities—fostering leadership, promoting AI literacy, providing clear guidance, building educator capacity, and supporting responsible innovation—to ensure AI strengthens education systems and prepares learners for an AI‑enabled workforce.
• The TeachAI AI Guidance for Schools Toolkit[viii]: The Toolkit helps education authorities, school leaders, and educators develop clear, responsible guidance for using AI in K–12 education, balancing potential benefits with risks such as privacy, bias, and academic integrity. It provides a practical framework, principles, sample policies, and communication templates to support safe and human‑centered AI adoption across school systems. The Toolkit has been used by the majority of states in constructing guidance for schools.
• The AI Literacy Framework[ix]: The AI Literacy Framework defines the knowledge, skills, and attitudes students and educators need to understand, use, and critically evaluate AI in education. It is organized around four core domains—Engaging with AI, Creating with AI, Managing AI, and Designing AI—and emphasizes critical thinking, ethics, and human judgment alongside technical understanding. It also emphasizes the foundational computer science concepts that prepare students to not just use AI but understand how AI works and its societal impacts. The framework is designed to be interdisciplinary, practical, and durable, helping schools integrate AI literacy into curriculum, professional learning, and policy in age‑appropriate ways.

2.AI guardrails – Teachers want students to use AI responsibly and safely

We have heard from teachers that one of the greatest hesitations they have with AI is around safety for students. This includes ensuring AI tools used in the classroom protect student privacy, don’t collect their information, and are safe from a mental health perspective.

Some of the strategies teachers use to promote safety are a significant focus in the professional development referenced earlier. In addition, the frameworks include key components to help teachers understand responsible AI use.

Microsoft takes our responsibility as a developer and deployer of AI technology very seriously. Paramount to deploying this technology in classrooms is ensuring it is responsible. Microsoft has identified six principles that we believe should guide AI development and use.

• Fairness: AI systems should treat all people fairly.
• Reliability and Safety: AI systems should perform reliably and safely.
• Privacy and Security: AI systems should be secure and respect privacy.
• Inclusiveness: AI systems should empower everyone and engage all people.
• Transparency: AI systems should be understandable.
• Accountability: People should be accountable for AI systems.

These principles are the foundation for other tools and resources we share with teachers to provide guidelines for them to deploy AI in the classroom.

As another example of our commitment to safety, earlier this month, on Safer Internet Day, we launched our new Microsoft Education Security Toolkit,[x] which provides educators and IT teams with practical guidance tailored to the realities of modern education.

3. AI tools – Teachers want classroom-ready AI tools and opportunities to provide feedback that improve them

Teachers often lack the right AI tools tailored to their needs for boosting student achievement. It’s essential to develop AI solutions based on teacher input rather than just delivering generic options. Microsoft strives to meet this responsibility by designing tools and partnerships that address educators’ needs. We believe this approach creates a critical feedback loop that will allow us to constantly evolve our tools to maximize their benefit in the classroom over time.

In fact, at Microsoft, our engineering teams collaborate closely with educators and students to advance the development of AI tools for classroom use. We partner with teacher organizations and directly engage with the disability community to better understand instructional requirements and design technology that enhance student learning outcomes.  Some examples include:

Reading Progress

One of the tools we offer to teachers is called Reading Progress, which helps teachers analyze students’ fluency and generates reading passages and comprehension questions.

From the beginning of development, we worked with individual teachers through our Educator Insiders program and with entire schools or districts through our Technology Adoption Preview, where educators test prototypes of our products and provide feedback.

For example, teachers asked for a tool that could generate tailored passages to meet the needs of their students. We incorporated that feedback and now, teachers can get as specific as saying they want a passage generated about sports that is for a third-grade reading level and includes specific words their class is learning.

Teachers also told us they wanted reading comprehension questions generated faster and better. With AI, it’s easy to do this in a high-quality way.

Teachers report increased comprehension, higher reading fluency, and higher scores, especially for struggling or reluctant readers.

Teach for America (TFA)

Microsoft has been a proud supporter of TFA’s efforts to improve the education system and expand opportunities for children across the U.S. It has been great to see all of the ways in which TFA has worked to equip their teachers with AI fluency in order to help them integrate this technology into the classroom.

TFA recently completed a cloud migration to Microsoft Azure, unlocking countless avenues to improve program design and delivery, direct the most possible funds toward its mission to ensure all kids have access to an excellent education, and evolve to offer the best learning options inside and outside the classroom.

Where do we go from here

What is both exciting and daunting about AI is that while we can take lessons learned from previous technological transformations in the classroom, much of the book has not been written on AI adoption. Meaning tech companies, teachers, government, and other stakeholders have the opportunity to shape where AI goes in education and beyond.

I want to conclude my remarks today with policy recommendations for the Committee to consider:

• Support professional development for teachers to effectively teach about AI and responsibly integrate AI tools in the classroom.
  • At the Federal level, this means providing priorities for competitive grant programs, such as those recently proposed by the U.S. Department of Education.
• Encourage public-private partnerships.
  • Incentivize and prioritize Federal funds and grants that support partnerships between technology companies and educational programs, including apprenticeship and credentialed organizations, to develop up to-date AI curriculum.
• Promote AI literacy across the U.S.
  • Integrate AI skills and concepts, including their foundational principles, social impacts, and ethical concerns, into existing curriculum and instruction.
• Provide guidance.
  • Equip schools with guidance on the safe, effective, and responsible use of AI, including considerations related to student privacy, data security, accessibility, transparency, and appropriate human oversight.
• Invest in innovation.
  • Support research and evaluation to better understand the impacts of AI in education, including its effects on teaching and learning and student outcomes, and to identify effective, scalable practices that mitigate the digital divide.

 

[i] Smith, Brad. “Foreword.” Degrees of Change: What AI Means for Education and the Next Generation, by Juan M. Lavista Ferres, John Wiley & Sons, 2026.
[ii] See Microsoft 2025 AI in Education Survey Details, August 2025
[iii] See Microsoft 2025 AI in Education Survey Details, August 2025
[iv] See Microsoft Elevate: Putting people first, July 2025
[v] See Commonsense Guardrails for Using Advanced Technology in Schools, March 2025
[vi] See Microsoft 2025 AI in Education Survey Details, August 2025
[vii] See TeachAI Foundational Policies
[viii] See TeachAI AI Guidance for Schools Toolkit
[ix] See AI Literacy Framework
[x] See Microsoft Education Security Toolkit, February 2026

[1] ISTE (International Society for Technology in Education) + ASCD (Association for Supervision and Curriculum Development)

 

The post Building an AI-Ready America: Teaching in the AI age appeared first on Microsoft On the Issues.

Microsoft announces at the India AI Impact Summit it is on pace to invest USD $50 billion by the end of the decade to help bring AI to countries across the Global South  

Artificial intelligence is diffusing at an impressive speed, but its adoption around the world remains profoundly uneven. As Microsoft’s latest AI Diffusion Report shows, AI usage in the Global North is roughly twice that of the Global South. And this divide continues to widen. This disparity impacts not only national and regional economic growth, but whether AI can deliver on its broader promise of expanding opportunity and prosperity around the world.

The India AI Impact Summit rightly has placed this challenge at the center of its agenda. For more than a century, unequal access to electricity exacerbated a growing economic gap between the Global North and South. Unless we act with urgency, a growing AI divide will perpetuate this disparity in the century ahead.

Solutions will not come easily. The needs are multifaceted, and will require substantial investments and hard work by governments, the private sector, and nonprofit organizations. But the opportunity is clear. If AI is deployed broadly and used well by a young and growing population, it offers a real prospect for catch-up economic growth for the Global South. It might even provide the biggest such opportunity of the 21^st century.

As a company, we are committed to playing an ambitious and constructive role in supporting this opportunity. This week in Delhi, we’re sharing that Microsoft is on pace to invest $50 billion by the end of the decade to help bring AI to countries across the Global South. This is based on a five-part program to drive AI impact, consisting of the following:

• Building the infrastructure needed for AI diffusion
• Empowering people through technology and skills for schools and nonprofits
• Strengthening multilingual and multicultural AI capabilities
• Enabling local AI innovations that address community needs
• Measuring AI diffusion to guide future AI policies and investments

One thing that is clear this week at the summit in India is that success will require many deep partnerships. These must span borders and bring people and organizations together across the public, private, and nonprofit sectors.

1. Building the infrastructure needed for AI diffusion

Infrastructure is a prerequisite for AI diffusion, requiring reliable electricity, connectivity, and compute capacity. To help address infrastructure gaps and support the growing needs of the Global South, Microsoft has steadily increased its investments in AI-enabling infrastructure across these regions. In our last fiscal year alone, Microsoft invested more than  $8 billion in datacenter infrastructure serving the Global South. This includes new infrastructure in India, Mexico, and countries in Africa, South America, Southeast Asia, and the Middle East.

We’re coupling our investments in datacenters with an ambitious effort to help close the Global South’s connectivity divide. We’ve been pursuing aggressively a global goal to extend internet access to 250 million people in unserved and underserved communities in the Global South, including 100 million people in Africa.

As we announced in November, we’ve already reached 117 million people across Africa through partnerships with organizations such as Cassava Technologies, Mawingu, and others that are building last‑mile networks across rural and urban communities alike. We’re closing in on our global goal of reaching 250 million people and will share an update on that progress soon.

We’re investing in AI infrastructure with sensitivity to digital sovereignty needs. We recognize that in a fragmented world, we must offer customers attractive choices for the use of our offerings. This includes sovereign controls in the public cloud, private sovereign offerings, and close collaboration with national partners.

We pursue all this with commitments to protect cybersecurity, privacy, and resilience. In the age of AI, we ensure that our customers’ AI-based innovations and intellectual property remain in their hands and under their control, rather than being transferred to AI providers.

Critically, we balance our focus on national sovereignty with our efforts to support digital trust and stability across borders. The Global South requires enormous investments to fund infrastructure for datacenters, connectivity, and electricity. It is difficult to imagine meeting all these needs without foreign direct investment, including from international technology firms.

This need is part of what informed our announcement last week at the Munich Security Conference of the new Trusted Tech Alliance. This new partnership brings together 16 leading technology companies from 11 countries and four continents. We’ve agreed together that we will adhere to five core principles designed to ensure trust in technology. Ultimately, we believe the Global South—as well as the rest of the world—needs both to protect its digital sovereignty and benefit from new investments and the best digital innovations the world has to offer.

2. Empowering people through technology and skills for schools and nonprofits

Ultimately, datacenters, connectivity, and electricity provide only part of the digital infrastructure a nation needs. History shows that the ability to provide access to technology and technology skills are equally important for economic development.

As a company, we’re focused on this in multiple ways. One critical aspect of our work is based on programs to provide cloud, AI, and other digital technologies to schools and nonprofits across the Global South. Another is our work to advance broad access to AI skills. In our last fiscal year, Microsoft invested more than $2 billion in these programs in the Global South. This includes direct financial grants, technology donations, skilling programs, and below-market product discounts.

AI skills are foundational to ensuring that AI expands opportunity and enables people to pursue more impactful real-world applications. With the launch of Microsoft Elevate in July, we committed to helping 20 million people in and beyond the Global South earn in-demand AI skilling credentials by 2028. After training 5.6 million people across India in 2025, we advanced this work by setting a goal last December to equip 20 million people in India with essential AI skills by 2030.

As part of that commitment, today we are announcing the launch of Elevate for Educators in India to strengthen the capacity of two million teachers across more than 200,000 schools, vocational institutes, and higher education settings. Our goal is to help the country’s teaching workforce lead confidently in an AI‑driven future. The program will be delivered in partnership with India’s national education and workforce training authorities, expanding equitable AI opportunities for eight million students.

Through Microsoft Elevate, we’re also working to introduce new educator credentials and a global professional learning community that enables teachers to share best practices with peers worldwide. This effort will involve large-scale capacity building initiatives, including AI Ambassadors, Educator Academies, AI Productivity Labs, and Centers of Excellence. It will equip 25,000 institutions with inclusive AI infrastructure while integrating AI learning pathways into major government platforms.

3. Strengthening multilingual and multicultural AI capabilities

Language is another major barrier to AI diffusion across the Global South, particularly in regions where digitally underrepresented languages prevail and access to essential services depends on local-language communication. For billions of people worldwide, AI systems perform less consistently in the languages they rely on most than in English.

That’s why we’re announcing this week new steps to increase our investments across the AI lifecycle, from data and models to evaluation and deployment, to strengthen multilingual and multicultural capabilities and support more inclusive AI systems that will better serve the Global South.

First, we’re investing upstream in language data and model capability. This includes support for LINGUA Africa, which builds on what we learned through LINGUA Europe: that investing in language data and model capability in partnership with local communities can materially improve AI performance for underrepresented languages.

Through LINGUA Africa—a $5.5 million open call led by the Masakhane African Languages Hub, Microsoft’s AI for Good Lab, and the Gates Foundation, with additional support from the UK government—we are prioritizing open, responsibly sourced data across text, speech, and vision as well as use-case-driven AI model development. By enabling African languages in high-impact sectors like education, food security, health, and government services, LINGUA Africa aims to ensure AI advances translate into tangible improvements in people’s daily lives.

Second, we’re advancing multilingual and multicultural evaluation tools. We’re helping expand the MLCommons AILuminate benchmark to include major Indic and Asian languages, enabling more reliable measurement of AI safety and security beyond English.

Today, even when automated evaluation tools expand language coverage, they too often rely on machine translation or English-first model behavior, with predictable failures when local expressions shift meaning. Partnering with academic and government institutions in India, Japan, Korea, and Singapore, and with industry, Microsoft is co-leading AILuminate’s multilingual, multicultural, and multimodal expansion that builds from the ground up. With a pilot dataset of 7,000 high-quality text-and-image prompts for Hindi, Tamil, Malay, Japanese, and Korean, we’re developing tools that reflect how risks manifest in local linguistic and cultural contexts, not just how they appear after translation.

Microsoft Research is also advancing Samiksha, a community-centered method for evaluating AI behavior in real-world contexts, in collaboration with Karya and The Collective Intelligence Project in India. Samiksha encodes local language use, culturally specific communication norms, and locally relevant use cases directly into core testing artifacts by surfacing failure modes that English-first evaluations routinely miss.

Finally, we’re working to scale content provenance for linguistic diversity. For trusted AI deployment, the ecosystem benefits from tools to identify the provenance of digital content like images, audio, or video, distinguishing whether it’s AI-generated. With partners in the Coalition for Content Provenance and Authenticity (C2PA), Microsoft is helping extend content provenance standards beyond an English-ready baseline. This includes forthcoming support for multiple Indic languages across metadata, specifications, and UX guidance, alongside efforts to support mobile-first deployment. With these investments, hundreds of millions more people in India will be better equipped to identify synthetic media in their primary language.

4. Enabling local AI innovations that address community needs

As India’s guiding sutras for the AI Impact Summit recognize, AI must be applied to address pressing challenges in collaboration with people and organizations in the Global South. Microsoft’s increasing investments prioritize locally defined problems, locally grounded expertise, and real-world impact. Our goal is straightforward: to ensure that AI solutions are not only technically sound, but socially relevant and sustainable.

Today, Microsoft is announcing a new AI initiative to strengthen food security across Sub-Saharan Africa, starting in Kenya and designed to scale across the region. Across Global South communities, food security and sustainable agriculture are critical to resilience and progress. In collaboration with NASA Harvest, the government of Kenya, the East Africa Grain Council, UNDP AI Hub for Sustainable Development, and FAO, our AI for Good Lab will use AI on top of satellite data to provide critical, timely food security insights. This builds on what we’ve learned in helping to address rice farming challenges in India, where severe groundwater depletion prompted 150,000 farmers in Punjab to adopt water-saving methods. In collaboration with The Nature Conservancy, Microsoft’s AI for Good Lab developed a classification system with satellite imagery to empower policymakers to track adoption of sustainable rice farming practices, target interventions, and measure water management impacts at scale.

Through Project Gecko, Microsoft Research is also co-designing AI technologies with local communities in East Africa and South Asia to support agriculture. This work includes the Paza family of automatic speech recognition models that can operate on mobile devices across six Kenyan languages, multilingual Copilots, and a Multimodal Critical Thinking (MMCT) Agent that can reason over community-generated video, voice, and text. Microsoft also launched PazaBench—the first automatic speech recognition leaderboard, with initial coverage of 39 African languages—and developed two playbooks for multilingual and multicultural capabilities, Paza and Vibhasha. Likewise, our AI for Good Lab developed a reproducible pipeline for adapting open-weight large language models to low-resource languages, demonstrating measurable gains for languages such as Chichewa, Inuktitut, and Māori.

5. Measuring AI diffusion to guide future AI policies and investments

Finally, accelerating diffusion requires a firm understanding of where AI is being used, how it is being adopted, and where gaps persist. Building on our AI Diffusion Reports and Microsoft GitHub’s long track record of contributing to the OECD AI Policy Observatory, the WIPO Global Innovation Index, and other cross‑country analyses, we’re increasing our investments in research and data sharing to track AI diffusion.

We’re advancing new methods for sharing AI adoption metrics. For example, based on models used in public code repositories hosted on Microsoft GitHub and privacy-preserving aggregated usage signals from Azure Foundry, we’re scaling this work through contributions to the forthcoming Global AI Adoption Index developed by the World Bank.

Signals from the global developer community that builds, adapts, and deploys AI-enabled software round out adoption research. At 24 million, the Indian developer community is the second largest national community on GitHub, where developers learn about and collaborate with the world on AI. The Indian community is also the fastest growing among the top 30 largest economies, with growth at more than 26 percent each year since 2020 and a recent surge of over 36 percent in annual growth as of Q4 2025. Indian developers rank second globally in open-source contributions, second in GitHub Education users, and second in contributions to public generative AI projects, with readiness to use tools like GitHub Copilot across academic, enterprise, and public interest settings enabling AI diffusion.

Insights from this evidence base help inform investments in infrastructure, language capabilities, skilling, or beyond, supporting more targeted and effective interventions to expand AI’s benefits. They also create a common empirical baseline to track progress over time—so AI diffusion becomes something we can measure and shape, not just observe.

Sustaining impact at scale through coordinated global action

For AI to diffuse broadly and deliver meaningful impact across regions, several conditions matter. As a company, we are focused on the need for accessible AI infrastructure, systems that work reliably in real-world contexts, and technologies that can be applied toward local challenges and opportunities. Microsoft is committed to working with partners to advance this work, including sharing data to track progress.

The post We need to act with urgency to address the growing AI divide appeared first on Microsoft On the Issues.

Read the full Global AI Adoption Report.

Global adoption of artificial intelligence continued to rise in the second half of 2025, increasing by 1.2 percentage points compared to the first half of the year, with roughly one in six people worldwide now using generative AI tools, remarkable progress for a technology that only recently entered mainstream use. 

To track this trend, we measure AI diffusion as the share of people worldwide who have used a generative AI product during the reported period. This measure is derived from aggregated and anonymized Microsoft telemetry and then adjusted to reflect differences in OS and device-market share, internet penetration, and country population. Additional details on the methodology are available in our AI Diffusion technical paper.^[1]

No single metric is perfect, and this one is no exception. Through the Microsoft AI Economy Institute, we continue to refine how we measure AI diffusion globally, including how adoption varies across countries in ways that best advance priorities such as scientific discovery and productivity gains. For this report, we rely on the strongest cross-country measure available today, and we expect to complement it over time with additional indicators as they emerge and mature. 

Despite progress in AI adoption, the data shows a widening divide: adoption in the Global North grew nearly twice as fast as in the Global South. As a result, 24.7 percent of the working age population in the Global North is now using these tools, compared to only 14.1 percent in the Global South.  

Countries that have invested early in digital infrastructure, AI skilling, and government adoption, such as the United Arab Emirates, Singapore, Norway, Ireland, France, and Spain, continue to lead. The UAE extended its lead as the #1 ranked country, with 64.0 percent of the working age population using AI at the end of 2025, compared to 59.4 percent earlier in the year. The UAE has opened a lead of more than three percentage points over Singapore, which continues in second place with 60.9 percent adoption.

 

The second half of the year in the United States shows that leadership in innovation and infrastructure, while critical, does not by themselves lead to broad AI adoption. The U.S. leads in both AI infrastructure and frontier model development, but it fell from 23rd to 24th place in AI usage among the working age population, with a 28.3 percent usage rate. It lags far behind smaller, more highly digitized and AI-focused economies. 

South Korea stands out as the clearest end-of-year success story. It surged seven spots in the global rankings, climbing from 25th to 18th, driven by government policies, improved frontier model capabilities in the Korean language, and consumer-facing features that resonated with the population. Generative AI is now used in schools, workplaces, and public services, and South Korea has become one of ChatGPT’s fastest-growing markets, leading OpenAI to open an office in Seoul.[2] 

 

A parallel development reshaping the global landscape in 2025 was the rapid rise of DeepSeek, an open-source AI platform that has gained significant traction in markets long underserved by traditional providers. By releasing its model under an open-source MIT license and offering a completely free chatbot, DeepSeek removed both financial and technical barriers that limit access to advanced AI. Its strongest adoption, not surprisingly has emerged across China, Russia, Iran, Cuba, and Belarus. But perhaps even more notable is DeepSeek’s surging popularity across Africa, where it is aided by strategic promotion and partnerships with firms such as Huawei.^[3]

This rapid evolution underscores an increasingly important dimension of AI competition between the United States and China, involving a race to promote adoption of their respective national models. DeepSeek’s success reflects growing Chinese momentum across Africa, a trend that may continue to accelerate in 2026. DeepSeek’s ascent also underscores a broader truth: the global diffusion of AI is influenced by accessibility factors, and the next wave of users may come from communities that have historically had limited access to technological progress. The challenge ahead is ensuring that innovation spreads in ways that help narrow divides rather than deepen them.

[1]A. Misra, J. Wang, S. McCullers, K. White, and J. L. Ferres, “Measuring AI Diffusion: A Population-Normalized Metric for Tracking Global AI Usage,” Nov. 04, 2025, arXiv: arXiv:2511.02781. doi: 10.48550/arXiv.2511.02781..

[2] OpenAI Korea set to launch next month – The Korea Times.” https://www.koreatimes.co.kr/business/companies/20250828/openai-korea-set-to-launch-next-month

[3] S. Rai, L. Prinsloo, and H. Nyambura, “China’s DeepSeek Is Beating Out OpenAI and Google in Africa (1).” Bloomberg News..

The post Global AI adoption in 2025 — A widening digital divide appeared first on Microsoft On the Issues.

Since opening our first Canadian office in Toronto in 1985, Microsoft has played an important role in every chapter of Canada’s digital story, long before cloud and AI were household words. That history matters. Over four decades, our company and our thousands of employees have grown alongside Canada. We’ve developed a deep appreciation for this nation’s culture, values, needs, and important role in the world.

Today we are announcing the most important commitment in Microsoft Canada’s history. We’re adding to our investments—with a total of $19 billion CAD between 2023 and 2027, including more than $7.5 billion CAD in the next two years. We’re building new digital and AI infrastructure needed for the nation’s growth and prosperity, with new capacity beginning to come online in the second half of 2026. Equally important, we’re launching a new five-point plan to promote and protect Canada’s digital sovereignty. And we’re combining this with ongoing and new work to invest in Canada’s people, ensuring they have access to the skills needed to succeed in an AI era.

This builds upon Microsoft’s longstanding and deep relationship with the Canadian people. With more than 5,300 employees across 11 cities nationwide, including Toronto, Vancouver, Montreal, Calgary, Edmonton, Ottawa, and Quebec City, we have employees in every region to bring talent closer to the communities we serve.

Beyond our own team, based on third party estimates, we’re fueling the broader tech ecosystem with more than 17,000 companies that are Microsoft partners in Canada generating between $33B CAD and $41B CAD in annual revenue. Based on this partnership model, Microsoft helps support 426,000 jobs across Canada, including close to 300,000 people who build solutions on Microsoft platforms or provide goods and services for these efforts. As we expand our AI and cloud footprint, these partnerships are helping Canadian organizations to modernize and compete globally.

Our commitment also extends beyond business. In 2024 alone, we donated $219M CAD in grants, employee giving, and technology services to Canadian non-profits and charities.

At its core, our commitment to Canada centres on three things: technology, trust, and talent.

Technology: Building the Backbone of Canada’s Digital Future

Canada’s AI transformation is accelerating. According to Microsoft’s AI Diffusion Leaderboard, Canada ranks 14th globally in AI adoption, with usage now topping a third of the population. Developer contributions are growing too with Canada ranking 14th worldwide in GitHub AI contributors.

This momentum is clear. Canada is a leader not just in AI research, but in putting AI to good use. But sustaining this momentum requires more than enthusiasm. It demands advanced AI infrastructure, sovereign safeguards, world-class cybersecurity, and a skilled workforce to keep pace with innovation. That’s why Microsoft is investing to create a secure, sustainable, and scalable backbone for AI adoption, empowering Canada to lead confidently in the AI era.

Our investment expands our Azure Canada Central and Canada East datacentre regions, delivering sustainable, secure, and scalable cloud and AI capabilities. These datacentres will power everything from modernized public services to advanced AI innovation—responsibly and within Canadian borders.

Every facility and datacentre we build in Canada reflects Microsoft’s global commitment to sustainability. We’re designing our facilities to be energy-efficient, powered increasingly by renewable energy, and optimized for water conservation through advanced cooling technologies. These steps align with our pledge to be carbon negative, water positive, and zero waste by 2030, ensuring that as we expand our AI and cloud footprint, we do so responsibly—minimizing environmental impact while supporting Canada’s clean energy goals.

Since early 2023, these investments have already launched major infrastructure projects, created thousands of jobs, and partnered with Canadian innovators to drive sustainability and economic growth. These datacentres also translate into thousands of construction and permanent engineering and technology jobs, partnerships with Canadian digital innovators, and a surge in local economic opportunity.

Our infrastructure expansion has helped transform and develop new industries—from retail and finance to cleantech and quantum computing. Firms like Canadian Tire, Manulife, BMO, and Gay Lea Foods are embracing AI to transform their businesses, and their stories are a testament to Canada’s leadership in digital adoption.

To help achieve our 2030 sustainability goals, Microsoft is also investing in Canadian cleantech innovation. Canada is recognized as a global leader in cleantech and carbon removal technologies, and we are proud to collaborate with outstanding Canadian companies like Eavor, Cyclic Materials, Arca, Deep Sky, and Carbon Engineering (via 1PointFive).

Trust: A Five-Point Plan to Protect Canada’s Digital Sovereignty

As important as our investment in AI infrastructure is the new company-wide initiative we are launching to protect Canada’s digital sovereignty. This builds on technology and expertise across Microsoft and is based on a five-part plan to defend Canada’s cybersecurity, keep Canadian data on Canadian soil, strengthen privacy protection, support leading local AI developers, and ensure the continuity of cloud and AI services.

Defending Canada’s cybersecurity

As we enter the second quarter of the 21^st century, the protection of digital sovereignty starts with the protection of cybersecurity. Reflecting Microsoft’s long-term presence in Canada, we appreciate how much has changed since the century began. During the first quarter of the century, Canada’s population grew by more than 28 percent and its GDP in real terms grew by more than 55 percent. Changing geopolitics and navigation in the Arctic Ocean have put Canada in a more important global position than ever.

Canada’s growth and importance have made the country a bigger cybersecurity target.

Microsoft has long prioritized the protection of Canadian cybersecurity. With unmatched threat intelligence capabilities based on 100 trillion signals from around the world every day, we’ve seen increasing international targeting of Canadian digital assets, especially from China, Russia, North Korea, and countries across south Asia and the Middle East. This has included influence operations in advance of elections and digital espionage focused on government agencies.

Even more significant, Canada’s diverse and robust economy has become a target of sophisticated international ransomware attacks. Organized criminal groups—some with nation state sponsorship—are targeting every sector of the economy and the public, and they are starting to rely on even more sophisticated technology and techniques, including AI. Our assessment is that in 2025 more than half of cyberattacks against Canada with known motives have been based on financial objectives, and 80 percent of them have involved efforts to exfiltrate data. Almost 20 percent have targeted the healthcare and education sectors, which creates more widespread threats to the public.

To strengthen our protection of Canada’s cybersecurity, we are launching today in Ottawa a dedicated Threat Intelligence Hub. This Hub will house Microsoft subject matter experts in threat intelligence, threat protection research, and applied AI security research. They will have access to Microsoft threat intelligence data and assets from around the world, so they can work closely with the Government of Canada and law enforcement partners to track and interdict nation state actors and organized crime.

In recent months, our team in Canada has been working to thwart China-based threat actors and has been sharing intelligence related to North Korean IT workers using stolen or fake identities to secure jobs with technology companies in Canada. We are dedicated to making this cybersecurity protection even stronger going forward.

Keeping Canadian Data on Canadian Soil

We also recognize the importance of ensuring that our Canadian customers can keep their local data on Canadian soil. This is why we embarked a decade ago, in close consultation with national leaders, to build and open our first two Canadian datacentres to provide local data residency in Toronto and Quebec City. We have steadily expanded our local services each year since. In 2026, we will take three new steps to keep Canadian data on Canadian soil.

First, we will strengthen sovereign controls and expand our data residency commitments by offering in-country data processing for Copilot interactions.

 

Second, we will expand our Azure Local offering in Canada to enable the extension of Azure capabilities to customer-owned environments such as private cloud and on-premises infrastructure.

And third, we will launch Sovereign AI Landing Zone (SAIL) in Canada. This is an open-source AI Landing Zone whose code will be hosted publicly on GitHub, and which will provide a secure foundation for deploying AI solutions within Canada’s borders, so organizations can build, scale, and innovate while maintaining the highest standards of privacy and compliance.

Protecting Canadian privacy

We recognize that privacy is a cornerstone of digital trust. We have long protected the digital privacy of people across Canada. As we look to 2026, we will build on this strong foundation with new technical capabilities and legal measures.

Next year, Microsoft will bring the latest confidential computing capabilities to our Canadian datacentre regions. Confidential computing in Azure enables organizations to keep data encrypted and isolated, even while in use, helping meet stringent digital sovereignty requirements. Azure Key Vault will also be available to Canadian customers, supporting external key management and allowing encryption keys to remain under customer control, whether stored on-premises or with a trusted third-party Hardware Security Module (HSM).

We will couple these technical measures with expanded contractual protection. We are codifying our promise to protect our Canadian customers’ data with a contractual commitment, in which we agree to challenge any government demand for Canadian government or commercial customer data where we have a legal basis for doing so.

Supporting Canada’s AI developers

Canada’s growing AI and digital ecosystem also requires protection and support for the nation’s leading AI developers. We have expanded this work in 2025 and will continue to prioritize these efforts in the year ahead.

Our work with Cohere exemplifies this commitment: we are welcoming Cohere into the Microsoft Foundry’s first-party model lineup, making their advanced language models—Command A, Embed 4, and Rerank—accessible on Azure. This will amplify Canadian innovation on a global stage. This partnership is built on more than technology; it is grounded in trust and shared values, with initiatives to help Cohere scale across Canada and worldwide.

We will explore new ways to integrate Cohere’s sovereign, made-in-Canada AI models into Microsoft services, helping to ensure Canadian enterprises and the public sector benefit from secure, locally developed solutions that embody responsibility and integrity. Together with Canada’s leading innovators, we are building relationships that deliver opportunity and impact while reinforcing the trusted foundation of Canadian digital sovereignty.

Defending the continuity of Canadian cloud services

Finally, in the face of geopolitical uncertainty, continuity is essential. Microsoft pledges to rigorously defend the uninterrupted operation of cloud services for Canadian government customers. If ever confronted with an order to suspend or halt operations in Canada, we will pursue every available legal and diplomatic avenue—including litigation—to protect access to critical infrastructure. Our track record demonstrates our resolve to stand up for customer rights. We remain ready to reinforce this commitment through robust contractual agreements, confident in our ability to ensure the ongoing operation of Canadian datacentres. Ultimately, these efforts aim to deepen trust between people, institutions, and nations, grounded in mutual respect and a shared commitment to advancing Canada’s digital future.

Microsoft’s digital infrastructure in Canada is not built on wheels. It is permanent infrastructure, and fully subject to Canadian laws and regulations. We recognize and respect that our operations in Canada are governed by Canadian law, just as we adhere to local laws in every country where we operate.

Talent: Investing in the Future for Every Canadian

At its core, every datacentre we build and every AI capability we deploy is an investment in Canadians and their future. Because technology alone doesn’t drive transformation, people do. That’s why it’s imperative to ensure that every Canadian can develop the skills needed to succeed in an AI era.

The need is clear. By 2030, nearly 60 percent of workers worldwide will require new digital skills, yet today only 24 percent of Canadians have received AI training, compared to a global average of 39 percent. Closing this gap is critical for Canada’s competitiveness.

Our new Microsoft Elevate business unit is designed to put people first, making AI opportunities accessible across the country. Since July 2024, Microsoft Canada has engaged 5.7 million learners through free skilling programs, with more than 546,000 individuals completing an AI training course. And we’re not stopping there. By 2026, Microsoft Elevate will help 250,000 Canadians earn in-demand AI credentials, ensuring the workforce is ready for the next decade of innovation.

Our partnerships amplify this impact. The Nonprofit AI Impact Hub, developed with the Canadian Centre for Nonprofit Digital Resilience (CCNDR) and Imagine Canada, strengthens the digital resilience of Canada’s 170,000 charities and nonprofits, which collectively employ 2.7 million people. Through role-based AI training and micro-credentials, we’re equipping this sector with tools to serve communities better.

We’re also investing in the next generation. Today, we are proud to announce a new partnership with Actua, a national leader that brings STEM education to youth throughout Canada, including those in remote, rural, and Indigenous communities. Microsoft Canada and Actua are committed to working with Indigenous communities across Canada to support AI skills development, so that the benefits of AI are felt widely. This partnership will support Actua’s AI Ready and InSTEM (Indigenous Youth in STEM) programs, to equip 20,000 young Canadians with essential AI skills. The InSTEM program will add AI learning for Indigenous youth, blending technology with cultural heritage and knowledge. For instance, students learn how AI tools can help preserve Indigenous languages and support cultural identity.

Canada Can Count on Us

Few American companies have benefitted more than Microsoft from such longstanding ties to Canada. Living so close to the border, we have long appreciated the many attributes that make Canada so special. We share more than geography. We share priorities like security, sustainability, and inclusive growth.

Today, we’re taking this partnership to the next level. We believe Canada has what it takes to help lead the world in responsible AI innovation and adoption, and we’re committed to being a partner every step of the way.

The post Microsoft Deepens Its Commitment to Canada with Landmark $19B AI Investment appeared first on Microsoft On the Issues.

Around the world, the dangers of extreme weather are a daily reality. In 2024, extreme weather displaced or disrupted the lives of more than 800,000 people worldwide —a reminder that accurate, timely forecasts aren’t just about data; they’re about people. From farmers deciding when to plant to coastal communities preparing for hurricanes, better forecasting can save lives, protect infrastructure, and support economies. 

That is why Microsoft remains deeply committed to Aurora, an AI model designed to help scientists understand Earth systems in new ways. Trained on vast amounts of data, it’s tuned to model the Earth’s systems. Aurora has already shown promise across multiple scenarios, including predicting the weather, tracking hurricanes and air quality, and modeling ocean waves and energy flows. 

Today, we are reaffirming our commitment: keep Aurora open, collaborative, and impactful so researchers can innovate faster and deliver solutions that help communities prepare, adapt, and thrive. Scientific progress depends on openness and a strong global community, which is why Aurora will progress as an open-source platform, enabling scientists everywhere to contribute and apply it to new climate and weather challenges. 

The next phase: Fueling innovation through research partnerships

We’re collaborating with Professor Rich Turner, a leader in machine learning research, and his lab at the University of Cambridge through a Microsoft AI for Good grant and research scientists to continue development of Aurora. Originally developed by Microsoft Research AI for Science, with collaboration from Professor Turner, we believe Aurora has the potential to change the way scientists around the world can use AI for weather and climate science. 

Building on our SPARROW initiative, we’re also investing in research of open-source weather stations that can expand access to high-quality environmental data. These affordable, community-deployable systems are designed to help fill critical observation gaps and strengthen the dependability of weather predictions where they matter most. 

Making Aurora available to scientists everywhere

Aurora’s source code and model weights are already open—but we’re going further. Together with Turner and Cambridge, our AI for Good team will open-source future releases of Aurora and new models that are built upon it, including training pipelines. By making Aurora open and free to build upon, we’re enabling researchers and developers everywhere to collaborate, contribute, and drive innovation together. 

Empowering national meteorological services

As with any technology, the measure of success for tools like Aurora is to have a positive impact on the lives of people. Empowering national meteorological services across the Global South, along with the Global North, is a priority.  We’re particularly focused on the application of Aurora to help meteorological services develop and strengthen their own forecasting systems that are tailored to their own local environments. This will allow them to adapt, extend, and innovate on top of Aurora, improving the accuracy, reliability, and reach of their forecasts. 

Enabling a cross-industry ecosystem

Aurora is trained on one of the largest collections of atmospheric data ever assembled to develop an AI forecasting model. It’s then fine-tuned to perform a variety of specific tasks, like predicting wave height or air quality, using modest amounts of additional data.  

The application of such a model could unlock innovation across all kinds of other industries. For example, energy companies and commodity traders have expressed interest, particularly in seeing how Aurora can be adapted to better predict renewable power generation, anticipate extreme weather events, and help protect energy grids. 

We are excited to see our work on Aurora graduate from a research project into a truly collaborative, open-source effort. By opening Aurora to the global community, we’re enabling breakthroughs in scientific understanding that we hope will transform humanitarian aid, optimize energy systems, advance sustainability, and even reshape financial services. 

The post The Next Phase of Aurora: Open and Collaborative AI for Weather and Climate Forecasting  appeared first on Microsoft On the Issues.

Artificial intelligence is transforming the way we work, learn, and innovate—and it’s doing so at a pace that surpasses every major technology before it. Microsoft’s inaugural AI Diffusion Report offers a comprehensive look at how AI adoption is accelerating worldwide, drawing on data from more than 100 countries. In less than three years, more than 1.2 billion people have used AI tools, a rate of adoption faster than the internet, the personal computer, or even the smartphone. This rapid diffusion underscores AI’s potential as a general-purpose technology but also highlights the urgent need to ensure equitable access.

The report introduces three indices—the AI Frontier Index, the AI Infrastructure Index, and the AI Diffusion Index—to help policymakers, researchers, and industry leaders understand where breakthroughs are happening, where capacity exists to scale, and where AI is being used to improve lives. These insights show that adoption is fastest where connectivity and digital infrastructure are strongest, while nearly four billion people still lack the basics needed to participate in the AI economy. Bridging this gap is essential to avoid deepening global divides.

Beyond the numbers, the report illustrates the need for collaborative action to expand access to digital infrastructure, strengthen skills development, and promote responsible AI policies. By investing in these foundational elements, governments and organizations can unlock AI’s potential for growth and innovation. The data makes clear that speed alone does not guarantee shared prosperity—broad accessibility does.

To explore the full findings and recommendations, read the AI Diffusion Report.

The post Understanding global AI diffusion appeared first on Microsoft On the Issues.

As Abu Dhabi and Dubai kick off a significant week hosting annual energy and technology conferences, we want to share details of our ongoing and planned investments in the United Arab Emirates. Roughly two and a half years ago, we embarked on a new AI initiative with the encouragement and support of both the United States and UAE governments. Much of this progress has involved a new partnership with G42, the UAE’s sovereign AI company, with whom we’re making critical progress.   

All told, Microsoft will invest $15.2 billion USD in the UAE between the start of this initiative in 2023 and the end of this decade, in 2029. This is not money raised in the UAE. It’s money we’re spending in the UAE. And as we do everywhere in the world, we’re focused not just on growing our business but also on contributing to the local economy. This involves bringing together three critical factors – technology, talent, and trust.   

On some days, it feels like the tech sector is gripped in a rhetorical race to announce ever larger, sky-high numbers. We believe in moving fast while staying grounded and being transparent about our investment details. And we want to share our strong conviction that our investments benefit the shareholders of our company, the people of the UAE, and the relationship between our two nations.   

Our investment numbers  

Our $15.2 billion USD investment includes the following:  

• Beginning in 2023 and through the end of this calendar year, Microsoft will have invested and spent just over $7.3 billion in the UAE. This includes our $1.5 billion equity investment in G42, more than $4.6 billion in capital expenses in advanced AI and cloud datacenters in the country, and more than $1.2 billion in local operating expenses and the cost of goods sold.   

• From the start of 2026 to the end of 2029, we will spend more than $7.9 billion in the UAE. This includes more than $5.5 billion in capital expenses for ongoing and planned expansion of our AI and cloud infrastructure, including new steps we will share publicly in Abu Dhabi this week. It also includes almost $2.4 billion in planned local operating expenses and the cost of goods sold.  

An investment in world-leading technology  

Some of our most important work involves exporting world-leading technology from the United States to the UAE. This includes the GPUs essential to power AI in our datacenters across the country that support the UAE’s people and institutions.  

Microsoft was one of the few companies during the previous administration to secure export licenses from the Commerce Department to ship GPUs to the UAE. In no small measure, this is because of the substantial work we did to meet the strong cybersecurity, national security, and other technology conditions required by these licenses. These licenses enabled us to accumulate in the country the equivalent of 21,500 Nvidia A100 GPUs, based on a combination of A100, H100, and H200 chips.  

Microsoft was also the first company this year under the Trump administration to secure export licenses from the Commerce Department to ship GPUs to the UAE. Approved in September, these were based on updated and stringent technology safeguards. These licenses enable us to ship the equivalent of 60,400 additional A100 chips, in this instance involving Nvidia’s even more advanced GB300 GPUs.  

While the chips are powerful and the numbers are large, more important is their positive impact across the UAE. We’re using these GPUs to provide access to advanced AI models from OpenAI, Anthropic, open-source providers, and Microsoft itself. We’re supporting AI-enabled applications, including our Copilot applications, from a wide variety of local and international providers. And we’re partnering with G42 to support public and private sector organizations across the UAE economy, as well as consumers across the country.  

The UAE’s ranking in the Microsoft AI Diffusion Report published last week shows the country leading the world in per capita AI usage. With 59.4 percent of the population using generative AI, the UAE is ahead of Singapore, which is in second place at 58.6 percent. Beyond these two, no other country tops the 50 percent mark. Microsoft’s infrastructure challenge in the UAE is not a risk of getting ahead of demand but keeping pace with it.  

Investing in talent  

Microsoft’s investment in the UAE is not just about technology, it’s also about people. By cultivating AI talent and skilling individuals to develop, deploy, and use AI in a way that reflects the region’s unique needs, Microsoft is helping to ensure that the UAE remains on the leading edge of AI diffusion.  

Today, Microsoft’s presence in the UAE reflects this commitment. Our growing team includes almost 1,000 full-time employees and related staff representing 40 nationalities. Nearly 100 of our employees are engineers, supported by an Emirati partner ecosystem that has grown almost threefold in just two years, now with 1,400 firms employing nearly 45,000 professionals across the country.  

This year, we established the Global Engineering Development Center in Abu Dhabi to attract world-class tech talent to the UAE. Our engineers not only develop new products and services for Microsoft, but support institutions and businesses across the region so they can use AI and cloud technologies to transform their own operations. As we look to the future, we aspire to grow our engineering teams further and add a new focus on domain-specific AI models and applications that will propel advances in key scientific and technological fields.  

We also opened a new center for the Microsoft AI for Good Lab in Abu Dhabi, staffed by PhD level research talent specializing in large-scale AI models, vision-language models, and post training techniques. Backed by Azure compute grants allocated to partner organizations, this team collaborates with nonprofits, start-ups, researchers, academic institutions, and local businesses to address humanitarian challenges across the Middle East and Africa using AI. Already, the Lab has partnered with researchers to train large language models for low-resource languages, including those spoken in Malawi, Tanzania, Kenya, Uganda, and the Democratic Republic of the Congo – helping ensure that AI serves communities that risk being left behind in the AI age.    

As the Microsoft AI Diffusion Report underscores, people need digital proficiency to fully participate in an AI-driven economy. Without the right skills, AI risks deepening inequality rather than broadening opportunity. That’s why skilling is a core pillar of our investment in the UAE.   

Last November, we committed to skill one million people in the UAE by the end of 2027–and we’re well on our way to meet – and exceed–our goal. Last month at GITEX, Microsoft partnered with UAE government entities to launch an initiative to upskill 120,000 government employees across the federal government, Abu Dhabi, Dubai, and Sharjah. We will also skill 175,000 students and 39,000 teachers through collaborations with GEMS, Abu Dhabi Department of Education (ADEK), and the Knowledge and Human Development Authority (KHDA). We will announce new steps in this area on Thursday in Dubai.  

Talent is the engine of AI leadership. Attracting, nurturing, and building AI talent and know-how is essential to the UAE turning its vision of becoming a global leader into a reality.   

Strengthening trust   

Ultimately, the use of AI depends on trust. People and institutions need to trust that AI will be developed and deployed with responsible safeguards. They need to have confidence that the cybersecurity of AI chips, models, and services will be protected. And they rightly expect AI to serve the public broadly, with cause for optimism that AI will reach and support the Global South.  

Given the role of export controls and other trade issues, the flow of advanced GPUs and AI models also requires trust between nations. This in turn requires clear rules and agreements, coupled with effective compliance systems. And as always, trust between nations depends on strong relationships between its people, grounded in mutual respect and appreciation for each other’s cultures.  

We’re focused on supporting all these needs.   

One important part of this is the Responsible AI Future Foundation, or RAIFF. G42, Microsoft, and Mohamed bin Zayed University of Artificial Intelligence (MBZUAI) founded this new foundation in Abu Dhabi in February to promote responsible AI standards and best practices in the Middle East and across the Global South. This foundation is advancing research on the technical and ethical elements of responsible AI and is developing frameworks to ensure ethical development and deployment of AI systems, accounting for cultural diversity.   

A second element comes to life through the first annual Abu Dhabi Global AI Summit, which began Sunday. Hosted by G42, Microsoft, the Responsible AI Future Foundation, and Eurasia Group’s GZERO Media, this Summit brings government ministers, private sector executives, and AI leaders together to discuss what’s needed to drive AI diffusion across the Global South. We meet at a time when there is a growing risk that uneven AI diffusion may widen the economic and societal gaps that divide the world. It’s imperative that governments, businesses, and non-governmental organizations collaborate and take new steps to promote broader access to AI.  

Both these elements build on a third and deeper initiative that Microsoft and G42 have advanced during the past two years. In conjunction with our $1.5 billion investment, Microsoft and G42 created last April a first–of–its–kind binding framework between two private companies. Developed in close consultation with the U.S. and UAE governments, this Intergovernmental Assurance Agreement (IGAA) ensures that both our companies meet or exceed U.S. standards in critical areas such as cybersecurity and physical security, export controls and technology transfer, data protection and responsible AI, and Know Your Customer (KYC) best practices.   

As we drafted the IGAA, we consulted not only leaders from government ministries in our two countries, but with members and staff of both political parties in both houses of Congress in Washington, D.C. We listened to feedback and adapted the IGAA to address their suggestions. And we’ve built a strong compliance infrastructure to implement these requirements based on industry best practices and auditing standards.   

All these steps help bolster mutual confidence and trust between our two governments. But trust between nations also grows through relationships among people. That’s why we’re advancing a fourth and new element this week, traveling to Abu Dhabi with a Seattle delegation of public and private leaders. The group includes a former Governor and local leaders in economic development, higher education, medical research, the non-profit community, and sports. The goal is to deepen understanding, exchange ideas, and explore solutions that can advance both regions.   

Looking to the future  

Microsoft is committed to the future of the UAE and a strong relationship between our two nations. We believe in the UAE’s long-term economic vision and the role the UAE and the U.S. continue to play together to support peace, stability, and growth across the Middle East.  

As we do everywhere we do business, Microsoft is committed to a broad perspective and long-term approach. Our work in the UAE has underscored the importance of connecting technology investments to initiatives to attract and develop the talent needed for a vibrant and self-sustaining tech ecosystem. And work to advance trust, which may seem peripheral to some, is in fact of central importance. From stronger business practices to broader international ties, trust is a critical catalyst for technology success at a local and global level.  

Technology is our business and we’re as excited as anyone by its potential. But we know that ultimately there is only one test that matters. It’s how our technology empowers others to achieve more. Like every public company, our shareholders rightly expect us to deliver value to customers in ways that enable us to continue to grow. But we also judge ourselves by whether we are generating local opportunities and growth that go well beyond ourselves. Across the UAE, we’re committed to passing this test.  

The post Microsoft’s $15.2 billion USD investment in the UAE appeared first on Microsoft On the Issues.