Worldwide AI adoption surges, new report shows

Ireland remains one of the world’s leading markets for AI adoption, with 48.4% of its working-age population using AI tools, according to Microsoft’s Global AI Diffusion Report for the first quarter of 2026.

Microsoft said Ireland recorded a quarterly increase of 3.8 percentage points, placing it fourth globally and close to surpassing the 50% milestone. If current trends continue, Ireland could overtake Norway, which currently ranks third for AI adoption.

Globally, AI usage increased from 16.3% to 17.8% of the working-age population during the first quarter of 2026. Adoption remains uneven, with 26 economies now exceeding 30% usage, while the United Arab Emirates leads globally at 70.1%.

Regional trends show strong momentum in Asia, driven in part by improved AI capabilities for Asian languages. Microsoft said South Korea, Thailand and Japan recorded some of the greatest movement during the quarter.

At the same time, the gap between the Global North and Global South widened, with AI usage reaching 27.5% in developed regions compared with 15.4% elsewhere. Microsoft said it measures AI diffusion as the share of people aged 15 to 64 who used a generative AI product during the reported period.

Advances in AI-assisted coding also affected software development. Microsoft said global git pushes increased 78% year on year, while US software developer employment reached about 2.2 million in 2025 and was about 4% higher in March 2026 than in March 2025. The report cautions that it is still too early to determine the full labour-market impact of AI-assisted coding.

Why does it matter?

The report shows how quickly generative AI is becoming part of everyday work and digital activity, but also how uneven that adoption remains across countries and regions. If high-adoption economies continue to move faster, AI could widen existing digital and economic divides, especially where infrastructure, language support, skills and access remain weaker.

The findings also show why governments and businesses are under pressure to adapt workforce training, regulation and digital infrastructure as AI use spreads. Rising adoption may support productivity gains, but it also raises questions about who benefits, which regions fall behind and how labour markets adjust as AI tools become more embedded in software development and services.

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