The UAE has again taken top ranking for adopting artificial intelligence, according to the 2026 Microsoft AI Economy Institute analysis.
The Emirates was followed by Singapore, Norway, Ireland and France.
Although the US is home to some of the world's largest and most influential AI and technology companies, it ranked 21st for AI diffusion, which is most defined as the broad adoption of and adaptation to AI tools.
But that was still an improvement on 2025, when the US ranked 24th.
Microsoft explained the UAE's continued dominance in the study.
“Growth at this scale reflects deliberate, long-term investment in the right foundations, even through more challenging periods,” Amr Kamel, general manager for Microsoft's UAE division, said in a statement.
“The priority now is what comes next: enabling organisations to operate with confidence, sustain continuity, and build forward responsibly."
Microsoft's latest report gave the UAE a 70.1 per cent diffusion score, compared to the 64 per cent score it received in 2025.
Over the past decade, the UAE has sought to become an AI leader as it continues to diversify its economy away from hydrocarbons.
The country’s affinity for research into the AI sector has resulted in the establishment of start-ups, partnerships and investments from industry leaders including Microsoft, Nvidia and OpenAI.
The UAE has also teamed up with the US to develop an AI campus, which will include 5GW of capacity for AI data centres, in Abu Dhabi.
In 2025, a survey conducted by consulting firm KPMG found that UAE optimism on AI was significantly ahead of the global average.
Another study focusing on AI adoption conducted by Counterpoint Research ranked Dubai in the top five, ahead of San Francisco.
