Taiwan Ranks 20th Globally in Generative AI Diffusion Rate

The AI Economy Institute, a Microsoft think tank, released a report on Thursday ranking Taiwan 20th globally in generative AI diffusion for the first quarter of 2026, with 31.8% of its working population using the technology. This marks a rise from 23rd place in the second half of 2025, placing Taiwan ahead of the US (31.3%), Denmark (31.2%), and Germany (31.1%). South Korea ranked 16th at 37.1%, recording the largest quarterly gain of 6.4 percentage points, while Taiwan and Japan both increased by 3.4 points. Globally, the average diffusion rate reached 17.8%, with 26 economies above 30%.

Asia dominated the growth leaders: 12 of the 15 fastest-growing economies were in the region, with South Korea (+43.2%), Thailand (+36.4%), and Japan (+34.1%) leading. However, the report revealed a widening north-south divide: the global north rose from 22.9% to 27.5%, while the south only edged from 13.1% to 15.4%. The UAE (70.1%) and Singapore (63.4%) were the sole economies above 50%. The think tank attributed persistent barriers in the global south—limited electricity, poor internet access, and low digital skills—as key obstacles preventing equitable AI benefits.