Artificial intelligence has moved decisively beyond pilots and proofs of concept, with governments now deploying it at scale as a core public service tool, senior leaders from Microsoft and Abu Dhabi-based AI firm G42 said at the World Government Summit 2026 in Dubai.

Speaking on the theme “Empowering Governments, Enriching Societies: Can AI lead?”, Scott Guthrie, Executive Vice President of Microsoft’s Cloud + AI Group, and Peng Xiao, Group CEO of G42, highlighted how sovereign controls, secure infrastructure and responsible deployment are becoming central as AI shifts from experimentation to daily use in government operations.

From pilots to production

Guthrie said the past year marked a clear turning point.
“This is no longer a nice-to-have or a demo, but rather something that people are going to leverage and use every day from a government perspective,” he said.
As AI enters production environments, he stressed the importance of sovereign AI models, particularly for the public sector, where data security, national control and in-country deployment are critical.

“When people start to use this to run their governments, you really need to understand the operational requirements – security, reliability,” Guthrie said, pointing to the UAE as a leading example. “The use cases that are now in production are phenomenal.”

AI a daily government tool

Peng Xiao echoed that sentiment, noting that while many governments are still debating AI at a conceptual level, the UAE has been operationalising it for years. He highlighted G42’s deep partnership with Microsoft, describing it as foundational to the country’s AI ambitions.

“In the UAE, we are actively constructing a five-gigawatt AI campus,” Xiao said. “We are connecting the national power grid to this new intelligence grid because we believe AI will become a more important utility than even electricity.”

He cited TAMM, Abu Dhabi’s all-in-one government services app, as a live example of AI at a societal scale. “Whatever you need as a citizen, consider it done,” Xiao said, noting that the AI-powered platform was developed jointly with Microsoft.

Five-gigawatt AI push

Looking ahead, Xiao said the five-gigawatt AI capacity under development in the UAE could generate up to 100 trillion tokens per day, enabling intelligence services not just for the country but for the wider region and beyond. Thanks to the UAE’s undersea fibre connectivity, he noted, AI services can reach nearly four billion people globally with sub-100 millisecond latency.

Rise of autonomous ‘agentic’ AI

Guthrie said another major shift expected over the next year is the rise of autonomous, or ‘agentic’ AI. Unlike traditional chat-based systems, autonomous agents can be assigned tasks and carry them out independently, sometimes without step-by-step human oversight.

“That’s incredibly powerful,” he said, “but it also means you need the right governance, security and safety controls.” Microsoft, he added, is developing frameworks such as Agent 365 to ensure visibility, control and rapid intervention if systems behave unpredictably.

From token to agent factories

Xiao said G42 is mirroring that approach at a national level, alongside what he described as a “token factory,” by building an “agent factory” in collaboration with Microsoft. “As we empower our agents to do more for us – even while we sleep – ensuring responsible authentication, authorisation and interaction become a national priority,” he said.

AI enters frontline healthcare

Xiao revealed that agentic AI is already being deployed in Abu Dhabi’s healthcare sector, with AI agents supporting primary care doctors to improve quality while reducing costs.

Both leaders rejected the idea of a winner-takes-all future for AI.

Guthrie compared the moment to the early days of smartphones, arguing that the biggest gains will go to organisations and governments that move early and responsibly. “There’s incredible work happening here in the UAE,” he said. “AI is now integrated into how governments deliver real impact to people – and that’s where its true value lies.”

GN

Google and Apple have confirmed a multi‑year partnership under which Apple will rely on Google’s Gemini artificial intelligence models and cloud infrastructure to power the next generation of its AI features — notably a revamped Siri voice assistant and Apple Intelligence system slated to roll out later in 2026.

The announcement marks a significant collaboration between two longtime rivals in consumer technology. According to the joint statement, Apple selected Google’s AI after extensive evaluation, citing Gemini’s performance as the most capable foundation for its future Apple Foundation Models.

Under the agreement, Apple will integrate Gemini models into its internal AI ecosystem — including the long‑anticipated Siri upgrade, which has faced delays in recent years amid challenges in expanding its capabilities. Apple says that despite using Google’s models for core intelligence, key AI features will continue to run on Apple devices and through the company’s Private Cloud Compute platform, maintaining the firm’s strong privacy safeguards.

Multiple outlets confirm that the deal will see Google’s technology underpinning Apple’s AI innovation, but it does not involve sending raw user queries back to Google’s systems. The Verge notes that while Gemini will assist models and features, Apple retains control over on‑device processing and user privacy.

Market reaction was swift: news of the partnership contributed to Alphabet briefly crossing a $4 trillion market valuation, as investor confidence in AI technologies continues to buoy major tech stocks. The collaboration is seen as a validation of Google’s rapid progress with Gemini models — a family of AI systems that have been widely deployed across Google services and rated highly against competitor benchmarks.

The deal also reflects a strategic shift for Apple’s AI roadmap, which has historically focused on in‑house foundation models and selective integrations with third‑party systems like ChatGPT. By choosing Google’s infrastructure, Apple aims to accelerate innovation and close the gap in features such as personalised voice interaction, context‑aware responses and deeper integration with applications.

Experts tell reporters this collaboration could influence the broader AI ecosystem — positioning Gemini as a core engine not just for Google’s own products but also across rival platforms. Meanwhile, consumers can expect to see the first fruits of the partnership as Apple begins rolling out AI‑enhanced Siri features throughout 2026, with updates likely highlighted at Apple’s annual developer conference.

GM

Key Takeaways

• Tech-related sectors have dramatically outperformed the broader market since ChatGPT’s debut, driven by an AI-led investment boom.
• Nvidia, Broadcom, and other semiconductor-linked firms have seen extraordinary returns, reflecting soaring demand for AI infrastructure.

The launch of ChatGPT in late 2022 set off one of the most intense technology investment cycles in decades. Investors shifted capital toward companies and sectors positioned to benefit from AI infrastructure, cloud computing, and digital services.

This visualization highlights how each major U.S. equity sector performed from ChatGPT’s debut on November 30, 2022. Nvidia, for instance, climbed over 1,000% as demand for its AI-focused chips skyrocketed.

The data for this visualization comes from Deutsche Bank.

The AI Boom Rewired Market Leadership

Communication Services led all sectors with a 185% return, powered by Meta’s nearly fivefold increase. Information Technology followed at 157%, boosted by chipmakers and cloud providers essential to AI development.

Consumer Discretionary also outperformed, helped by digital-first platforms benefiting indirectly from AI-enabled efficiency gains. Together, these results show how the AI wave extended beyond semiconductors to reshape several adjacent industries.

Nvidia and Broadcom Stand Out as Market Outliers

No companies gained more from the AI surge than semiconductor leaders.

Nvidia returned roughly 1,020%, the single largest increase among major U.S. firms. Broadcom rose over 700%, reflecting its dominance in custom AI accelerators and networking hardware. Western Digital and Meta also delivered exceptional returns, nearing or exceeding 500%.

Traditional Defensive Sectors Lagged Behind

While tech surged, defensive and rate-sensitive sectors grew at a much slower pace.

Utilities returned 42%, healthcare 23%, and consumer staples 20%. Materials hovered near the bottom due to higher interest rates and slower industrial demand. Energy posted just 9%, reflecting weaker commodity dynamics. Meanwhile, the S&P 500 returned 80% over the same period.

Saurce: visualcapitalist