Microsoft Report Highlights Egypt’s Accelerating AI Adoption as Generative AI Usage Continues to Rise
Microsoft has highlighted Egypt’s growing momentum in artificial intelligence adoption, with new findings showing a steady increase in the use of generative AI technologies across the country during the first quarter of 2026.
According to the latest AI Diffusion Report published by the Microsoft AI Economy Institute, 14.8% of Egypt’s working-age population actively used generative AI tools during Q1 2026, up from 13.4% in the previous reporting period, representing a quarterly increase of 1.4 percentage points.
The report tracks generative AI adoption across more than 100 global markets using aggregated and anonymized Microsoft telemetry data, positioning Egypt among countries showing continued progress in AI integration and digital transformation.
The findings also place Egypt within a broader regional trend of accelerating AI adoption across the Middle East and North Africa. The report noted that the Middle East continues to demonstrate strong momentum in generative AI usage, led by the United Arab Emirates, which became the first economy globally to surpass the 70% adoption threshold, reaching 70.1% during Q1 2026.
Meanwhile, Qatar ranked tenth globally with a generative AI adoption rate of 41.8%, reinforcing the region’s growing role in the global AI economy.
Mohamed Kassem, General Manager of Microsoft Egypt, said the latest figures reflect a significant acceleration in Egypt’s AI ecosystem.
“A 1.4 percentage point increase may appear modest statistically, but across Egypt’s working-age population, it represents nearly one million additional people using AI within a single quarter,” Kassem said.
“That is the scale of transformation taking place in Egypt today. The country possesses the talent, market size, and institutional ambition necessary to become a major AI-driven economy. Microsoft has been a committed partner in Egypt’s digital transformation journey for decades, and we are increasingly confident in the country’s future capabilities,” he added.
Microsoft noted that it has operated in Egypt for more than 28 years, working alongside government institutions, educational organizations, financial services providers, and enterprises to support digital transformation initiatives, strengthen AI literacy, and build future-ready digital talent.
Globally, the report pointed to a widening AI adoption gap between developed and developing economies. According to the findings, AI adoption rates in higher-income regions expanded more than twice as fast as in lower-income regions.
The Global North reached an adoption rate of 27.5% during Q1 2026, compared to 15.4% in the Global South, widening the gap from 10.6 percentage points in the second half of 2025 to 12.1 percentage points in Q1 2026.
The report identified investment in digital infrastructure, connectivity, and local-language AI capabilities as critical factors in ensuring equitable AI access and long-term competitiveness, areas that align closely with Egypt’s national digital transformation and economic development strategies.
Microsoft emphasized that strengthening AI readiness, expanding digital skills, and accelerating infrastructure development remain essential to enabling emerging markets to capture the economic opportunities created by the rapidly evolving global AI landscape.
