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UNDP Human Development Report 2025 Highlights Nepal’s AI Potential


Kathmandu: The United Nations Development Programme (UNDP) released its ‘Human Development Report, 2025’ at a function held in the capital on Tuesday. The report focuses on the impact that artificial intelligence (AI) can have on the multidimensional aspects of human development along with the potential that it carries. The report also highlights the potential for the use of AI to further strengthen human development, promote inclusion, and establish a just society.



According to National News Agency Nepal, the report places Nepal among countries with medium human development in the Human Development Index, ranking it 145th with an index of 0.622. The report mentions that Nepal’s Human Development Index has increased by 54 percent over the last 35 years.



At the report’s launching event, Minister for Communications and Information Technology Prithvi Subba Gurung stated that Nepal has been taking policy initiatives to promote artificial intelligence, the digital economy, establish data centers, and attract foreign direct investment. A policy has been adopted to increase the use of AI in the research and development sector, while studies are ongoing on its effective application in education, health, and agriculture.



Minister Gurung highlighted that the cold climate of the Himalayan region and the availability of affordable green energy, such as hydropower, position Nepal as an attractive destination for establishing data centers. The government plans to establish IT hubs in every province, with infrastructure development initiatives underway. He expressed confidence that the ‘Digital Nepal Framework,’ which is already in place, will be further refined and systematically implemented to improve digitalization of government services, e-governance, and digital access for citizens.



On the occasion, UNDP Nepal Resident Representative Kyoko Yokosuka emphasized that the report focuses on how to benefit from AI use and the challenges it may present. In Nepal, AI can be effective in inclusive service delivery, improving local level efficiency, disaster management, mitigating climate change impact, and data-based policymaking.