Local workers beat global peers in AI use despite corporate lag

Singapore trails the UAE but beats out Norway, Ireland, and France.

Singapore ranked second globally for artificial intelligence (AI) diffusion in the first quarter of 2026, with 63.4% of its working-age population using generative AI tools, up from 60.9% in the second half of 2025, according to a Microsoft report.

The economy trailed only the United Arab Emirates, which recorded a 70.1% rate. Norway, Ireland, and France rounded out the top five in the ranking.

Microsoft defines AI diffusion as the share of people aged 15 to 64 who used a generative AI product during the reporting period, based on anonymised usage data adjusted for differences in internet access, device usage, and population across countries.

The group cited research from McKinsey showing that AI usage in Southeast Asia is growing faster than the global average, with organisations increasingly moving beyond pilot projects into scaled deployment.

Globally, AI usage increased from 16.3% to 17.8% of the world’s working-age population during the quarter.

In Singapore, most employees used AI tools at work several times a week or daily in 2025, according to Senior Minister of State for Digital Development and Information and for Health Tan Kiat How.

Enterprise adoption also rose more than fivefold to 23.5% in 2025 from 4.3% in 2023, Tan said during the opening ceremony of ATxEnterprise 2026.

Moreover, about 68% of AI-using firms plan to train and upskill workers in AI, whilst 63% plan to redesign jobs and workflows around the technology.

However, a separate Ministry of Manpower report found that 71.5% of companies have yet to adopt AI in their operations.

Singapore also lagged some peers in firm-level adoption at 28.5%, trailing China at 47.5%, Hong Kong at 41.0%, as well as Denmark and Finland.

The ministry said the figures suggest AI adoption amongst firms remains in the early stages of diffusion.

Meanwhile, the government recently announced new national AI missions focused on manufacturing, financial services, connectivity, and healthcare under refreshed priorities in its National AI Strategy (NAIS).

The updated strategy outlines 10 priorities spanning industry transformation, public-sector adoption, research, talent development, compute infrastructure, data governance, ecosystem integration, trusted AI governance, and international partnerships.

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