Microsoft’s AI Diffusion Report for Q1 2026, published by the Microsoft AI Economy Institute, places Egypt among markets demonstrating continued progress in generative AI adoption. According to the report, 14.8% of Egypt’s working-age population actively used generative AI during the first quarter of 2026, up from 13.4% in the preceding period, a gain of +1.4 percentage points.
The report tracks generative AI usage across more than 100 markets using aggregated and anonymised Microsoft telemetry.
Egypt’s results form part of a broader regional trend: the Middle East as a whole continues to demonstrate strong AI adoption momentum, anchored by the United Arab Emirates, the first economy globally to cross the 70% threshold, reaching 70.1% in Q1 2026 and Qatar, which ranks 10th globally at 41.8%.
Mohamed Kassem, General Manager, Microsoft Egypt, said: “A 1.4 percentage point increase may look modest on a chart. Across Egypt’s working-age population, it represents close to a million more people using AI in a single quarter. That is the scale of what is happening here, Egypt is a market with the size, the talent, and the institutional ambition to move fast and move far. Microsoft has been a committed partner in Egypt’s digital journey for decades, and we are only more confident in what this country will build from here.”
Microsoft has operated in Egypt for over 28 years, supporting public and private sector organisations through successive phases of digital transformation. That partnership spans government, education, financial services, and enterprise, working alongside national institutions to build digital capability, expand AI literacy, and develop the skilled workforce that Egypt’s next phase of growth will depend on.
Globally, the Q1 2026 report points to a widening gap between the Global North and Global South. AI adoption grew more than twice as fast in higher-income regions: the Global North reached 27.5%, compared with 15.4% in the Global South, a gap that widened from 10.6 percentage points in H2 2025 to 12.1 percentage points in Q1 2026.
The report identifies deliberate investment in connectivity, digital infrastructure, and local-language AI capability as the most effective response to ensuring equitable access, an area where Egypt’s own national strategy and economic development priorities provide a clear long-term framework.