Roseau, the capital of Dominica in the Eastern Caribbean. The UNDP Human Development Report 2025 shows that countries in Latin America and the Caribbean have made progress but still face challenges like inequality and slow growth, with AI considered a key opportunity to accelerate inclusive development. Credit: Alison Kentish/IPS
By Alison Kentish
DOMINICA, May 22 2025 – The United Nations Development Programme’s 2025 Human Development Report (HDR) says crises such as the Covid-19 pandemic have contributed to ‘the flatlining of decades of progress in the Human Development Index,’ with Latin America and the Caribbean facing unique challenges and opportunities.
Despite these challenges, the document, titled “A matter of choice: People and Possibilities in the age of AI,” states that artificial intelligence (AI) is a powerful tool to improve lives and close persistent gaps.
Lead author Pedro Conceiçāo described a ‘triple development squeeze’ affecting many countries.
“Difficulties accessing external financing, shrinking job creation opportunities and increased trade volatility,” he explained. “The opportunities of many countries to export to international markets, which is an important driver of development or has historically been, those opportunities are also narrow.”
Amid these pressures, AI emerges as a double-edged sword. According to a recent UNDP survey, “Up to two-thirds of people in low, medium, and high HDI countries expect artificial intelligence to become an important part of their lives within the next year—in health, education, and standard of living,” Conceição noted. He said the report and survey emphasize that “what matters less is the technology and more the choices that are made to ensure that AI advances human development.”
The report’s recommendations are clear:
- Build a complementary economy where AI empowers, not replaces, people.
- Drive innovation with intent, using AI to boost creativity and scientific progress.
- Invest in digital capabilities so everyone can thrive in an AI-driven world.
The Latin America and the Caribbean Situation
UNDP Regional Director for Latin America and the Caribbean Michelle Muschett outlined the region’s progress and pressure points.
“Latin America and the Caribbean consolidated its second year of recovery after the pandemic, moving from 0.783 in 2022 to 0.8 in the Human Development Index regionally in 2023,” she said. However, she cautioned, “Progress continues, but it remains slower than before the pandemic.”
The region stands out for its high human development scores—19 countries are classified as high, and 10 as very high. But Muschett warns, “Both development and democracy are under probably unprecedented pressure in the history of development of our region.”
She said this should serve as both a warning and a call to action.
“It’s a clear call to thinking and rethinking those institutions, public policies, processes, and the tools we have so that that pressure can become a positive force that moves us along the line of progress and shared prosperity.”
Muschett is candid about the region’s digital disparities. “We see already today the deep difference in terms of coverage when we compare rural areas with urban areas in Latin America and the Caribbean,” she says. “The highest quintile in terms of income has more than twice the access to AI than the lowest quintile. So we have a warning signal that is very important.”
To address digital gaps, the report calls for closing connectivity gaps, especially in rural and low-income areas; investment in digital literacy and lifelong learning; and ensuring that data is reliable and free from bias through strong, inclusive governance frameworks.
“This has to be a central priority of public policies,” Muschett urges. “Strategic alliances with other sectors of society—academia, private sector—become absolutely essential.”
A Resilient Future
Muschett says the UNDP is preparing to launch an “atlas of AI focused on human development,” offering policymakers tools to make informed, inclusive choices.
The message is clear: While the region faces significant challenges, deliberate action can shift the view of AI as a pressure point into a powerful driver of progress.
“The difference between one and the other is precisely in the deliberate decision we make as a region… whether it’s a huge threat or an unprecedented opportunity,” she said.
The message is clear: by fostering innovation, empowering individuals, and putting inclusion at the forefront, Latin America and the Caribbean have the potential to transform current obstacles into future possibilities—and become a worldwide model for leveraging technology to benefit all.
IPS UN Bureau Report
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