Excellencies, Ladies and Gentlemen, colleagues,

A warm welcome from UNDP this February morning as Kathmandu waits for spring.

In Nepal and around the world today, AI adoption is accelerating, shaping how we learn, work, and connect. The global AI market is projected to reach 4.8 trillion dollars by 2033. Many Nepali technology firms are already investing in AI products, services, and skills.

The Government of Nepal has taken important early steps - releasing a national AI Policy in 2025 and establishing the National AI Center within the Ministry of Communication and Information Technology to guide its implementation. UNDP is proud to be a partner in this journey through our work with the e-Governance Board, Office of the Prime Minister and Council of Ministers, Ministry of Communications and Information technology and the National AI Center.

At this juncture, we should ask a simple but important question: How can Nepal use AI to close development gaps and improve the lives of its people?
The answer lies in the choices Nepal makes.

Today marks the country launch of UNDP’s regional report on AI: "The Next Great Divergence: Why AI may widen inequality between countries." 

The title reminds us of a lesson from history: technological revolutions rarely benefit everyone equally at the start.  They flow first and fastest to those who are most prepared. The first Great Divergence, driven by the Industrial Revolution, reshaped global inequality for centuries. We now stand at a similar turning point - AI could repeat that pattern, or we can collectively steer it toward shared progress.

The report suggests 3 key messages to guide our choices:

First, Put People First.  

AI is powerful, but it is not automatically fair. When women, elderly people, rural communities, or marginalized groups missing from data, AI does not see them either. This can reinforce bias, deny people access to services, and weaken rights.

Every time we use AI in public services or policymaking, we must ask:  ‘can it reach women farmers in Karnali?’ ‘Can it work in Maithili or Tamang, not only in Nepali or English?’  

The answers to these must be yes.  

UNDP’s work with the National AI Center to support curated data sets in under-resourced languages is a step towards this goal.  

Second, Govern Innovation Responsibly.

As AI advances, protections must keep pace – ensuring systems are safe, transparent, and accountable.  Governance should be risk-based: an information chatbot needs lighter oversight than systems that determine social benefits. Equity must be built from the start, with affected communities having a voice.  

In countries with limited resources, responsible AI governance is often about getting the basics right: affordable and reliable electricity and internet, basic data-protection laws, and accessible digital payment systems so people can participate fully.  

Nepal continues to strengthen these foundations.  Despite real constraints: geography, connectivity gaps, and data readiness – innovation is already visible.  AI-enabled public service chatbots are expanding access and reducing administrative bottlenecks.

I commend the Government of Nepal for laying key governance foundations, including the National AI Policy that establishes the AI Regulatory Council.  Continued focus on transparency will ensure that citizens know when AI affects them - and have recourse when it fails.  

Third, Build Future-Ready Systems.

AI solutions for Nepal must be sustainable, resilient, and nationally anchored – moving beyond pilots to institutional systems, while building a pipeline of local talent to develop, run and maintain them.  

UNDP stands firmly with the Government of Nepal in tackling these challenges.  AI is not only a technology issue, but one that will shape Nepal’s development and inclusion outcomes in the years to come.

We bring evidence and independent analysis, and experience working across stakeholders – through support to policies, the AI Centre, e-governance initiatives, and the upcoming work on Nepali and indigenous language technology.  

Most importantly, we bring a commitment: keeping human development at the center of Nepal’s AI choices.

Today, we translate the evidence from this report into action. You will see six innovation ideas featuring Nepali innovators tackling real development challenges – highlighting both AI’s promise and the questions it raises. We will then convene experts to identify clear priorities for 2026 and beyond.

Nepal has agency. Our AI future is not predetermined. The decisions we make today, will shape the trajectory for Nepal and its people in the years ahead.

Thank you. 

Read the full report: https://www.undp.org/asia-pacific/publications/next-great-divergence