Friday, October 31, 2025

AI Diffusion: Insights from the AI Economy Institute and Microsoft Research

AI: The Fastest Diffusing General-Purpose Technology

Artificial Intelligence (AI) is transforming society rapidly, resembling previous general-purpose technologies like the printing press and electricity. With over 1.2 billion users in under three years, AI surpasses the adoption rates of the internet and smartphones. However, this diffusion is uneven between the Global North and South, where AI use in the North is double that in the South. The adoption gap is influenced by access to essential infrastructures, such as electricity and the internet, which remain lacking for nearly four billion people. Moreover, language barriers further hinder AI usage in low-resource regions. Countries like Singapore, UAE, and Norway exemplify effective AI adoption strategies through strong infrastructure and policy alignment. The AI diffusion landscape highlights that the benefits of AI, while promising, may not be equitably distributed without concerted efforts to bridge existing divides. Hence, fostering digital and language skills is crucial for inclusive progression in this technological revolution.

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