UNDP Warns of Historic Slowdown in Human Development, Sees AI as Key Catalyst
The Human Development Index (HDI), which evaluates nations’ progress based on income, health, and education, is showing signs of stalling.
Human development across the globe is facing an alarming slowdown, marking the smallest projected increase in progress since 1990—excluding the crisis years of 2020-2021—according to the newly released 2025 Human Development Report by the United Nations Development Programme (UNDP). Titled “A Matter of Choice: People and Possibilities in the Age of Artificial Intelligence (AI)”, the report offers a sobering analysis of global stagnation and growing inequality, while also identifying the transformative potential of Artificial Intelligence as a pathway out of this development rut.
Meagre Progress on the Human Development Index
The Human Development Index (HDI), which evaluates nations’ progress based on income, health, and education, is showing signs of stalling. All regions—regardless of development status—are witnessing a flatlining of HDI growth. For the first time in decades, the global trajectory toward a “very high human development” status by 2030 is in serious jeopardy.
Achim Steiner, UNDP Administrator, warned that “if 2024’s sluggish progress becomes ‘the new normal’, that 2030 milestone could slip by decades—making our world less secure, more divided, and more vulnerable to economic and ecological shocks.”
Inequality Between Nations on the Rise Again
The report documents a disturbing trend: for the fourth consecutive year, the gap between countries classified as Low HDI and those as Very High HDI is widening. This reverses a long-term trend of closing disparities between wealthier and poorer nations. Countries at the lower end of the HDI spectrum are facing compounded challenges, including rising trade tensions, debt burdens, and “jobless industrialization”—a phenomenon where technological advancements reduce the need for labor before employment peaks in industrial sectors.
AI as a Potential Game-Changer
Amid this backdrop of developmental stagnation, the report spotlights Artificial Intelligence as a potential catalyst for transformative change. While AI is not positioned as a universal fix, the report stresses that it offers “new capabilities emerging almost daily,” with the power to reshape how societies work, learn, and grow.
“Amidst this global turmoil, we must urgently explore new ways to drive development,” Steiner said. “With the right choices, AI can reignite human development and open new pathways.”
The report calls for a human-centered approach to AI that ensures technology is designed, governed, and implemented with people’s needs and rights at its core.
Global Sentiments: Cautiously Hopeful on AI
Survey data featured in the report shows that people around the world hold pragmatic yet optimistic views about AI:
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50% of global respondents believe their jobs could be automated.
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60% expect AI to have a positive impact on their employment, opening up new roles.
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Only 13% fear job losses due to AI.
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In low- and medium-HDI countries, 70% believe AI will increase productivity.
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66% foresee using AI in education, healthcare, or work within the next year.
Interestingly, one in five people surveyed already use AI, underscoring the rapid democratization of the technology.
Three Pillars for Harnessing AI in Human Development
The report outlines three critical areas where immediate action can help unlock the benefits of AI for human development:
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Fostering AI-Human Collaboration Rather than framing AI as a competitor to human labor, the report urges policies that enable people and machines to work together, enhancing productivity and innovation.
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Ensuring Human Oversight Across the AI Lifecycle From design to deployment, human values and agency must guide how AI systems are developed and used, emphasizing ethics, transparency, and inclusivity.
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Modernizing Education and Healthcare Systems To prepare for an AI-integrated future, education and health infrastructure must be revamped to equip individuals with the skills and services needed in the 21st century.
The Urgency of Equitable Access
The report warns that while AI adoption is spreading, its benefits will not be evenly distributed unless urgent action is taken. Universal access to electricity and the internet is foundational, but deeper concerns lie in the “use divide”—the varying capacity of individuals and communities to meaningfully integrate AI into their daily lives and livelihoods.
Pedro Conceição, Director of UNDP’s Human Development Report Office, emphasized, “With the right policies and focus on people, AI can be a crucial bridge to new knowledge, skills, and ideas that can empower everyone from farmers to small business owners.”
A Defining Moment for Global Policy
As the world faces the risk of entrenched developmental stagnation, the 2025 Human Development Report is both a warning and a call to action. It challenges global leaders to embrace forward-thinking strategies that align AI’s rapid evolution with equitable and sustainable development.
Ultimately, the report makes it clear: the choices made in the coming years—about governance, investment, and collaboration—will determine whether AI becomes a tool for empowerment or a force that further deepens global divides.
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