Human development in the age of AI: Call for inclusive transformation

In this moment, we are called not simply to adapt, but to lead

We stand at a pivotal moment in our human development journey. For three decades, the Human Development Index (HDI) demonstrated a consistent increase in development progress and a decrease in inequality. However, the poly-crises of 2020-2021 disrupted this trend, and the 2025 Human Development Report (HDR) has quashed the optimism of a swift recovery. Human development progress is decelerating at an alarming rate, and inequality has increased for the fourth consecutive year. With the fast-changing economic orders and conflicts, our future is becoming ever more uncertain.

Sri Lanka’s journey in human development has long been one of resilience, ambition, and achievement. In health, education, and life expectancy, we achieved milestones that consistently outperformed expectations, given our size and economic constraints. Yet, the past few years have reminded us that progress is neither linear nor guaranteed. The twin crises of a global pandemic and domestic economic strain disrupted not only our systems, but our sense of forward momentum. 

According to the 2025 HDR, Sri Lanka ranks 89th on HDI out of 193 countries and territories. While the HDI rose from 0.757 in 2014 to 0.776 in 2023, the country fell in rankings from 73rd in 2014, indicating fast HDI growth among other counties. Indeed, South Asia experienced the fastest HDI recovery post-pandemic, while Sri Lanka continued to be impacted by the economic crisis. This is underscored by the reduction shown in the inequality-adjusted HDI value between 2021 and 23, suggesting that inequality accounts for an 18% loss in potential human development. The biggest driver of inequality is income; the HDR reports that the poorest 40% of the population holds 18.5% of income, while the richest one percent holds 20.5%. As confirmed by UNDP’s 2023 Multi-dimensional Vulnerability Index (MVI) Report, development without equality has a long-lasting impact on the overall human development trajectory. 

Promise and responsibility

The 2025 HDR, titled ‘A Matter of Choice: People and Possibilities in the Age of AI,’ narrows in on one of the most powerful forces turning around this trajectory: artificial intelligence. Not as a distant disruptor, but as an active presence already reshaping how we live, work, learn, and govern. In Sri Lanka, we are already witnessing this transformation. From public health to agriculture, education to small enterprises, digital tools, many powered by AI, are beginning to influence both the pace and quality of development. This shift presents tremendous promise, but also profound responsibility.

The global survey accompanying the report reveals a surprisingly ready world. While half of all respondents believe their jobs could be automated, a majority, particularly in low- and middle-HDI countries, see this not with fear, but with optimism. Nearly 70% believe AI will increase their productivity, while two-thirds expect to engage with it in education, health, or work within the next 12 months. But access alone isn’t the answer; what will matter most is how we use AI – whether we allow it to displace people or empower them. Sri Lanka must have a clear intent for AI adoption so that it not only addresses the productivity challenge, but also augments the development experience. 

This is why the United Nations Development Programme (UNDP) is advocating for a human-centred approach to AI – one that upholds dignity, ensures safeguards and responsible use, advances equity, and places people, not algorithms, at the heart of development. Since late 2023, UNDP in Sri Lanka has partnered with the Ministry of Digital Economy and is continuing its support provided to the previous Committee on Formulating the Strategy on AI (CFSAI) to support the formulation of Sri Lanka’s first National Artificial Intelligence Strategy. This partnership has included technical assistance, policy advisory support, and the facilitation of expert engagement with international and local stakeholders. Drawing from global best practices and country-specific needs, the strategy aims to be inclusive, forward-looking, and actionable. 

The HDR sets out a threefold agenda for action; first, to construct economies where humans and machines collaborate, rather than compete; second, to embed human agency and ethical governance throughout the AI lifecycle, from its design to deployment; and third, to modernise our health and education systems to meet the evolving demands of this century, rather than the last.

Act now with vision

Sri Lanka is uniquely positioned to lead in this moment; our human capital has potential, our digital ambition is high, and our youth are eager. But we must act now with vision so that the reap of AI will be felt by all.

The digital divide is no longer just about devices or internet access; it is about whether people have the capacity, confidence, and opportunities to use new technologies to improve their lives. The AI-divide is a growing development threat. Particularly, in fast aging societies such as the one in Sri Lanka, the older generations are at a much greater risk of being left behind and losing control over their lives than the AI-savvy young generations. This means expanding access to knowledge and investing in innovation and institutions that can translate digital potential into inclusive and augmented development.

This year, UNDP marks 60 years of global partnership for sustainable development. Here in Sri Lanka, we reflect on 58 years of shared progress. At the heart of UNDP’s mission, human development is not just a measure of progress -it’s a call to action to expand people’s choices and capabilities, especially in an age where AI is reshaping what is possible. We stand, then, at a crossroads. One path leads to what the report describes as ‘development disappointment’, a world where technology accelerates inequality, disempowers communities, and leaves millions behind. The other path requires more courage and cooperation, but offers a future where AI becomes a bridge to human possibility, a catalyst for knowledge, resilience, and transformation.

In this moment, we are called not simply to adapt, but to lead. If we can rise to this challenge and harness AI to augment what is human, rather than undermine it, we may yet reclaim the trajectory we were on. More importantly, we can still build a development model that is more resilient, more just, and more visionary than anything we have known before.

Sri Lanka’s next leap in human development will not come from chance. It will come from choice. And UNDP remains committed to accompanying all of you in making the right one. 

Let’s make the right one.

(The writer is the Resident Representative, UNDP in Sri Lanka.)