UN report says AI could revive stalled human development worldwide

The UN Development Programme’s 2025 Human Development Report found that in the last year there was the smallest increase in global human development since 1990, excluding the COVID-19 pandemic years. The UN report argues that, despite widespread fears of job loss, a majority of the global population now sees AI as a source of new employment and opportunity.

The UN's findings emerge as technology companies tighten hiring practices. Technology firms have adopted AI-first approaches involving hiring restrictions or job cuts. Earlier this month Duolingo said that its teams are not allowed to hire new team members unless they can prove this role cannot be done with automation as part of a new AI-first mandate. Meanwhile, online freelancer marketplace Fiverr experienced internal warnings from leadership regarding automation, with CEO Micha Kaufman warning staff and posting on social media that AI is coming for jobs and that what was once considered easy tasks will disappear.

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"Amidst this global turmoil, we must urgently explore new ways to drive development,"

Achim Steiner, UN Development Programme administrator, via Information Age | ACS

Steiner’s remarks highlight a key tension. On one side, AI’s rapid expansion is described as no panacea, yet it offers a new pathway that could reignite human development. On the other, the UN warns that the same technology could deepen existing divides.

"AI could serve to exacerbate global inequality or help to close it,"

Achim Steiner, UN Development Programme administrator, via Information Age | ACS

Pedro Conceicao, director of the UN Development Programme’s Human Development Report Office, echoes this caution. He stresses that the legacy of AI will hinge on policy choices.

"The choices we make in the coming years will define the legacy of this technology transition for human development,"

Pedro Conceicao, UN Development Programme’s Human Development Report Office director, via Information Age | ACS

Conceicao further outlines the potential upside, noting that with the right policies and focus on people, AI can serve as a crucial bridge to new knowledge, skills, and ideas that can empower everyone from farmers to small business owners, according to Information Age | ACS.

While the UN report frames AI as a transformative global force, real-world industry shifts are simultaneously unfolding in Australia's beverage market. A Canvas8 report titled “Why Aussies want a functional future for soft drinks,” authored by Mariella Agapiou and reported by the New Fortune Times, documents a decisive shift toward drinks that combine taste with health benefits and lower environmental impact. According to the study, Australia's functional beverage market is projected to increase from $451 million in 2022 to an estimated $698.1 million by 2024, reflecting consumer demand for enhanced hydration and improved cognitive function.

"If the sugar tax included artificials, it would push everything toward natural alternatives,"

Mark Curry, CEO of Savvy Beverage, via New Fortune Times

Curry’s company is developing beverages to meet these emerging demands. The report also highlights the environmental cost of single-use plastic. Nina Gbor, founder of Eco Styles, points out that Australia is among the world's largest single-use-plastic consumers per capita.

"Australia is one of the biggest consumers of single-use plastic per person in the world,"

Nina Gbor, founder of Eco Styles, via New Fortune Times

In response, innovators like Refilled are deploying smart dispensers that recycle and reuse packaging. Founder Ryan Nelson notes the low rate of traditional recycling.

"Only one in five plastic bottles are ever recycled… Our system is designed to reduce waste and promote sustainability,"

Ryan Nelson, founder of Refilled, via New Fortune Times

Both the technology and beverage sectors face evolving frameworks. Public health advocates in Australia are discussing a proposed 20% tax on sugary beverages that could potentially raise $1.4 billion over two years to curb consumption and address rising rates of obesity and diabetes. Concurrently, the UN report calls for global investments in human capabilities and equity to ensure artificial intelligence magnifies positive human achievements rather than entrenching injustice.