Artificial Intelligence (AI) can play a transformative role in strengthening human development, promoting inclusion, and building a just society, according to the Human Development Report 2025 released by the United Nations Development Programme (UNDP) in Kathmandu on Tuesday.
The report underscores both the potential and the risks associated with AI, emphasizing the need to harness its capabilities responsibly to advance multidimensional aspects of human development. It identifies areas such as education, healthcare, agriculture, and disaster management where AI could significantly enhance service delivery and improve outcomes, particularly in countries like Nepal.
UNDP Nepal’s Resident Representative, Kyoko Yokosuka, highlighted that the report focuses on how countries can benefit from AI while addressing the associated risks. She noted that in Nepal’s context, AI could be instrumental in improving inclusive service delivery, enhancing the efficiency of local governments, managing disasters, and formulating evidence-based policies to address climate change.
Nepal currently ranks 145th on the Human Development Index (HDI), with a score of 0.622, placing it in the category of medium human development countries. The report notes a 54 percent improvement in Nepal's HDI over the past 35 years. However, low per capita income and persistent gender inequality continue to weigh down Nepal’s overall development performance.
Speaking at the launch event, Minister for Communication and Information Technology, Prithvi Subba Gurung, said the government has prioritized the development of the information technology sector. He pointed to ongoing efforts to promote AI, establish data centers, foster a digital economy, and attract foreign direct investment.
The minister said Nepal is formulating policies to expand AI use in research and development and is studying how AI can be applied effectively in key sectors to enhance productivity and global competitiveness. He also emphasized Nepal’s natural suitability for establishing data centers due to its cool Himalayan climate and the availability of low-cost green energy from hydropower, positioning the country as a potential digital hub.
“The government is committed to promoting IT-based entrepreneurship and encouraging private investment in technology. By bringing in foreign companies, we hope to generate employment and facilitate technology transfer,” Gurung said.
He also announced plans to establish IT hubs in every province and upgrade the Digital Nepal Framework to enhance digital public services, e-governance, and citizens’ access to technology.
Communication Ministry Secretary Radhika Aryal highlighted ongoing reforms in the digital sector, including the need to update the Digital Nepal Framework , national IT policy, and telecommunications-related laws. She emphasized the importance of building legal and technical infrastructure for cybersecurity and AI while expanding core digital infrastructure such as data centers and integrated e-governance systems. – With inputs from RSS
