US and China lag in AI adoption despite leading in model development

Recent research from Microsoft indicates that while the United States and China lead in the development of advanced artificial intelligence models, both nations are lagging in actual AI adoption. The United States has an adoption rate of 31.3%, ranking behind 20 other countries. China follows at 16%, ranking 69th globally, though its large population suggests significant potential for rapid growth.

In contrast, the United Arab Emirates leads global adoption with over 70%, followed by Singapore at 63%. South Korea has also seen a major surge, with a 43.2% increase in usage between mid-2025 and early 2026.

Technological competition between the two superpowers is also shifting in the API market. While American companies like OpenAI, Anthropic, and Google remain dominant in model performance, Chinese labs such as DeepSeek, Qwen, Kimi, and GLM have significantly closed the quality gap. Furthermore, a widening price gap has emerged, with Chinese models offering more cost-effective alternatives for developers compared to their American counterparts.