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 establishing a just society.

According to the report, Nepal is in the list of countries with medium human development in the Human Development Index. Nepal is ranked 145th with an index of 0.622. The report also mentions that Nepal's Human Development Index has increased by 54 percent in the last 35 years.

At the report's launching event, Minister for Communications and Information Technology Prithvi Subba Gurung said that Nepal has been taking policy initiatives to promote artificial intelligence, 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 being conducted on how AI can be effectively used in sectors such as education, health, and agriculture.

Minister Gurung said that the cold weather of the Himalayan region and the availability of cheap green energy (hydropower) have the potential to establish Nepal as an attractive destination for establishing a data center.

The government has planned to establish IT hubs in every province and initiatives are being taken to develop infrastructure for the same, said Minister Gurung. He expressed his belief that the ‘Digital Nepal Framework’, which Nepal has already implemented, will be further refined and implemented in a systematic manner, and that this will improve digitalization of government service, e-governance and digital access of citizens.

On the occasion, UNDP Nepal Resident Representative Kyoko Yokosuka said that the report focuses on how to benefit from the use of artificial intelligence and what challenges it may come up with. In the case of Nepal, she said that the use of AI can be effective in areas such as inclusive service delivery, improving the efficiency of local levels, disaster management and mitigating the impact of climate change, and data-based policymaking.