Taiwan's AI diffusion rate 20th highest in world: Microsoft

Taipei, May 9 (CNA) Taiwan posted the world's 20th highest AI diffusion rate in the first quarter of 2026, entering the top 20 for the first time, according to a report released by a Microsoft think tank.

In the report published on Thursday U.S. time by the AI Economy Institute, Taiwan recorded a generative AI usage rate of 31.8 percent of its working population, rising from 23rd place in the second half of 2025.

Taiwan ranked ahead of the United States, Denmark and Germany, which placed 21st, 22nd and 23rd with rates of 31.3 percent, 31.2 percent and 31.1 percent, respectively.

Taiwan and Japan both posted increases of 3.4 percentage points from the second half of 2025, tying for the world's sixth-largest gain.

South Korea, ranked 16th globally with a diffusion rate of 37.1 percent, recorded the largest increase at 6.4 percentage points.

The report measured the share of people aged 15 to 64 -- defined as the working-age population -- using generative AI across 147 economies worldwide.

Globally, the AI diffusion rate reached 17.8 percent in the first quarter of 2026, up 1.5 percentage points from the second half of last year, according to the report.

A total of 26 economies recorded diffusion rates above 30 percent.

The United Arab Emirates and Singapore were the only two economies with diffusion rates exceeding 50 percent, at 70.1 percent and 63.4 percent, respectively.

Rounding out the top 10 behind the two leaders were Norway, Ireland, France, Spain, New Zealand, the United Kingdom, the Netherlands and Qatar.

The report also found that 12 of the 15 fastest-growing economies since June 2025 were in Asia, with each recording a minimum growth of nearly 25 percent in AI users compared with mid-2025.

South Korea led with a 43.2 percent increase, followed by Thailand at 36.4 percent, and Japan at 34.1 percent.

Meanwhile, the report pointed out that the gap in AI adoption between the Global North and Global South was widening.

The diffusion rate in the Global North rose from 22.9 percent in the second half of 2025 to 27.5 percent in the first quarter of 2026, while the Global South increased from 13.1 percent to 15.4 percent.

The institute attributed the widening divide to persistent challenges in the Global South, including limited access to reliable electricity and internet connectivity, as well as lower digital skills.

"Until these foundational gaps are addressed, the benefits of generative AI will remain unevenly distributed, risking a deepening of existing global inequalities," the report said.