Some of the stakeholders pose for a picture with the report dummy after it was launched on Monday, November 25, 2024 in Kampala. (Credit: ALP East Africa)

The Need for Artificial Intelligence ( AI ) Adoption in Uganda’s Business Sector

Posted by: Eninu William in Tech February 17, 2025

Artificial Intelligence, most commonly known as AI, is rapidly transforming business landscapes worldwide. Uganda’s business sector, however, has been slow in embracing this new form of technology. This is perhaps due to limited awareness, and inadequate infrastructure, among other reasons.

This article explores its benefits, challenges, and potential strategies for successful implementation.

While developed economies have adopted Artificial Intelligence to optimize operations, Uganda’s business sector still relies heavily on traditional methods.

By embracing AI, Ugandan businesses can streamline operations and improve customer experiences. They could also gain a competitive edge in both local and international markets.

A few benefits of AI adoption in Ugandan businesses

Enhanced Efficiency and Productivity; AI-driven automation reduces reliance on manual labor, enabling businesses to perform repetitive tasks with greater accuracy and speed.

Chatbots, robotic process automation (RPA), and AI-powered analytics can optimize administrative functions, customer service, and data management. The UAE(Dubai) is one of the first nations to adopt this new tech and Uganda could borrow a leaf or two from them.

Improved Decision-Making; AI algorithms analyze large volumes of data in real-time, providing businesses with valuable insights for informed decision-making.

In sectors such as finance, telecommunications, healthcare, and retail, AI-powered predictive analytics can enhance risk assessment, inventory management, and market trend analysis.

Cost Reduction; Automating routine tasks lowers operational costs by reducing human errors, minimizing waste, and optimizing resource allocation. Businesses can reinvest savings into expansion, research, and employee upskilling.

Enhanced Customer Experience; AI-driven customer service tools, such as virtual assistants and personalized recommendations, improve customer engagement and satisfaction. It can help businesses analyze consumer behavior, tailor marketing campaigns, and provide seamless service experiences.

Challenges to artificial intelligence adoption in Uganda

Despite the numerous advantages, several barriers hinder AI adoption in Uganda’s business sector:

Limited Awareness and Expertise – Many businesses lack knowledge about AI applications and their potential benefits, resulting in slow adoption rates. Most students in school use AI, however, their tutors are pretty clueless and too slow to adapt. The few who actually have an idea how these systems can be developed have not be called up to “the table of men” but respective agencies. So, AI adoption may take years in Uganda for it to record any success.

High Implementation Costs – Native AI technology requires substantial investment in infrastructure, software, and skilled personnel. This may not just be prohibitive for small and medium enterprises (SMEs) but impossible without government support. Perhaps we need a Chinese approach to AI, “spend less to do more”.

Data Limitations – Effective AI models rely on vast datasets, but Uganda faces challenges in data collection, storage, and security. The only agency that probably has a large volume of data could be NIRA, however, they are known to still be using flash drives to transfer data from one registration centre to another. A few others like telecoms have been compromised by fraudsters who have access to the personal data of mobile subscribers.

Strategies for AI Adoption in Ugandan Businesses

Investment in AI Education and Training – Universities and training institutions should incorporate AI-related courses to equip the workforce with relevant skills. The only problem is, AI is new tech and I don’t know of any PhD researchers who can teach this at the University. What we have as their possible nexts are simply knowledgeable people in the ICT sector.

Public-Private Partnerships – Collaborations between the government, businesses, and tech startups can drive AI research, funding, and implementation. For example Uganda Communications Commission (UCC) and Telecoms along with tech startups across the country.

AI Policy and Regulation Development – I am not sure where UCC currently stands on this, however, I will update when I have something tangible in hand.

Localizing AI Solutions – Ugandan businesses should develop AI applications suited to local challenges such as agriculture, finance, and healthcare. Felix Kitaka, a local tech entrepreneur recently came up with a Luganda GPT, trained it on local content and one would say it’s something many people should consider.

In conclusion, one can say that AI adoption in Uganda’s business sector is no longer a luxury but a necessity. While challenges exist, strategic interventions such as policy development, investment in AI education, and collaborative efforts can accelerate AI integration.

Technology is evolving real fast and with that comes serious changes that require one to move just as fast. However, if our government is not even talking about what is currently the main discussion point in international forums, I’m afraid we will not be able to compete with other nations.

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