Human Development Progress Hits 35-Year Low, UNDP Report Warns, Eyes AI Potential to Reignite Growth

Human Development Progress Hits 35-Year Low, UNDP Report Warns, Eyes AI Potential to Reignite Growth

The report includes results from a new survey indicating that people are both realistic and hopeful about the changes AI can bring.

By RMN News Service

Human development progress has slowed to an unprecedented 35-year low, excluding the crisis years of 2020-2021, according to a new report released on May 6 by the United Nations Development Programme (UNDP). The report, titled “A matter of choice: people and possibilities in the age of Artificial Intelligence (AI)“, reveals unexpectedly weak progress globally, with the meagre rise in global human development projected for this year being the smallest increase since 1990. Projections for 2024 indicate stalled progress on the Human Development Index (HDI) in all regions across the world.

The HDI encompasses achievements in health, education, and income levels. Beyond the deceleration in global development, the report highlights widening inequalities between rich and poor countries. This reverses a long-term trend of reducing inequalities between wealthy and poor nations and marks the fourth consecutive year that inequality between Low HDI and Very High HDI countries has increased. Development challenges are particularly severe for countries with the lowest HDI scores, driven by increasing trade tensions, a worsening debt crisis, and the rise of jobless industrialization.

Achim Steiner, UNDP Administrator, warned that if 2024’s sluggish progress becomes ‘the new normal’, the goal of reaching a very high human development world by 2030 could be delayed by decades, leading to a world that is less secure, more divided, and more vulnerable to shocks. Amidst this global turmoil, Mr. Steiner stressed the urgent need to explore new ways to drive development and suggested considering the potential of Artificial Intelligence. While acknowledging AI is not a complete solution, he stated that the choices made hold the potential to reignite human development and open new pathways and possibilities.

The report includes results from a new survey indicating that people are both realistic and hopeful about the changes AI can bring. Half of respondents worldwide believe their jobs could be automated, yet a larger proportion, six in ten, expect AI to positively impact their employment by creating opportunities in new jobs. Only 13 percent of survey respondents feared AI could lead to job losses. Notably, in low- and medium-HDI countries, 70 percent expect AI to increase their productivity, and two-thirds anticipate using AI in education, health, or work within the next year.

The UNDP advocates for a human-centered approach to AI that could fundamentally redesign approaches to development. Survey results suggest people worldwide are ready for this kind of ‘reset’. The report outlines three critical areas for action:

• Building an economy where people collaborate with AI rather than compete against it.
• Embedding human agency across the full AI lifecycle, from design to deployment.
• Modernizing education and health systems to meet 21st-Century demands.

[ Also Read: Pathway Small Business Bulletin May 2025 ]

The report notes that the democratization of AI is already underway, with about one in five survey respondents reporting current AI use. The anticipation of AI use in education, health, or work within the next year by two-thirds of respondents in lower human development countries makes closing electricity and internet gaps more urgent than ever to ensure no one is excluded. However, access alone is insufficient; the critical factor will be how effectively AI complements and augments human capabilities.

Pedro Conceição, Director of UNDP’s Human Development Report Office, highlighted that the choices made in the coming years will define the legacy of this technological transition for human development. He added that with the right policies and a focus on people, AI can serve as a crucial bridge to new knowledge, skills, and ideas, empowering individuals from farmers to small business owners.

The 2025 Human Development Report is available online.

About UNDP: UNDP is a leading United Nations organization working to end the injustice of poverty, inequality, and climate change, partnering with experts and partners in 170 countries to build integrated, lasting solutions.