Kathmandu – The United Nations Development Programme (UNDP) Nepal  launched the global 2025 Human Development Report (HDR), “A Matter of Choice: People and Possibilities in the Age of Artificial Intelligence”, in collaboration with Nepal Economic Forum at a high-level event in Kathmandu on Tuesday. 

The 2025 HDR reveals that global human development progress has slowed to its lowest point in 35 years, with widening gaps between richer and poorer countries. The report calls attention to the urgent need for innovative solutions to reignite development and highlights Artificial Intelligence (AI) as a powerful but double-edged tool that must be steered wisely to foster inclusion and resilience.

Speaking at the launch, UNDP Resident Representative to Nepal Ms. Kyoko Yokosuka emphasized, “The global findings remind us that development gains cannot be taken for granted. In Nepal, our challenge is to harness digital transformation and AI not just for innovation’s sake, but for deepening human development and leaving no one behind.”

Minister of Communication and Information Technology (MoCIT), Prithvi Subba Gurung, noted that Nepal finds itself at a historic moment, with AI redefining how we learn, work, govern and grow. He emphasized on the government having developed an AI Vision that puts people at the center of a resilient and adaptive digital transformation and how Nepal’s AI strategy promotes inclusion over exclusion, empower over control, and puts people over profits.

Radhika Aryal, Secretary at MoCIT, who that Nepal has made strides in technology adoption, but its benefits are not equally distributed. She highlighted that AI holds considerable potential, and if approached correctly, it can deliver inclusive digital outcomes for the country. 

Alexandru Oprunenco, Regional Innovation Advisor at UNDP, gave a presentation about the HDR, remarking that progress in human development has slowed in recent years, with many countries still not fully recovering from the setbacks of the COVID-19 pandemic. He noted that while Nepal has made steady progress, increasing HDI by 54% over the last 35 years, incomes remain low and gender inequality persists. With AI now adding a new dimension to development, he emphasized how we must retain our agency to design and develop the technology in a way that puts people at the center, augments instead of automates human capabilities, tackles real development problems, and creates a more inclusive society.

The program also featured a panel discussion titled “Making AI Work for Nepal”, which explored critical questions for the country’s digital future. It focused on how digital transformation and AI can support inclusive growth, strengthen citizen-centered state capacity, and ensure equitable access across all provinces. Speakers also emphasized the need for adaptive, learning-based governance to make the most of emerging technologies in Nepal’s development journey.

Ambassador of the United Kingdom to Nepal, Rob Fenn, stressed that AI holds great promise, but that Nepal must avoid early mistakes. He noted how establishing safeguards against misinformation and social division is critical to prevent the fallout of this rapidly developing technology. Particularly, the ambassador talked about how investing in digital literacy and AI readiness will go a long way in creating an AI-ready Nepal. 

These discussions are particularly timely as Nepal prepares to scale its digital infrastructure, modernize service delivery, and engage young innovators in shaping its digital future. The event also served as a platform to build consensus around a vision for equitable and human-centered AI strategies in Nepal.

The 2025 Human Development Report is available at https://hdr.undp.org/content/human-developmentreport-2025