Artificial Intelligence (AI) encompasses the creation of computer systems capable of exhibiting human-like cognitive abilities, including reasoning, learning, and problem-solving. Since its formal inception at Dartmouth University in 1956[i], AI has undergone remarkable advancements, becoming very popular and widely adopted in recent years.
As global economic progress becomes increasingly technology-dependent, the realization of objectives like poverty eradication and shared prosperity enhancement may hinge on nations’ ability to leverage AI effectively[ii]. AI offers numerous advantages, including enhancing productivity and efficiency, boosting worker incomes, streamlining core business operations, fostering human resource development, and spurring innovation across public and private sectors. Despite these opportunities, AI also presents challenges such as potentially exacerbating digital and technological disparities, altering job landscapes, and raising concerns about data protection, cybersecurity, and societal trust.
AI applications are already prevalent across various sectors in the country, including agriculture, education, healthcare, security, engineering, finance, and manufacturing among other sectors. However, the journey from recognizing AI’s potential to fully harnessing its benefits is not a walk in the park[iii]
It is estimated that approximately 26% of jobs in low-income countries are exposed to AI-related disruptions[iv]. Although less developed countries may not experience large-scale job displacement due to a slower AI adoption rate, they are less prepared to capitalize on AI’s benefits. Factors such as limited resources, poor digital infrastructure, limited expertise, limited awareness, cultural and regulatory barriers continue to impede readiness [v]
Unemployment has long been a significant issue in Uganda, affecting both educated and uneducated youth[vi] . With a rapidly growing population nearing 46 million, and youth aged 18 to 30 comprising 22% of this total, the problem has worsened over time. Some experts attribute this crisis to the country’s high youth population (ibid). UBOS indicates that 50.9% of Ugandan youth are neither employed nor pursuing education, underscoring the severity of the situation. The national unemployment rate has risen from 9.4% in 2014 to 12.6% in 2024[vii]. Furthermore, 82% of emigrants have cited job-related challenges as their primary reason for leaving the country.
Education, gender, residence, and age have been highlighted as critical factors influencing unemployment in Uganda[viii]. In response, the government has introduced various initiatives to address this issue, such as the Youth Livelihood Program, Operation Wealth Creation, and the Parish Development Model. Unemployment has also been attributed to lack of relevant skills, such as computer literacy and AI literacy. With rapid advancements in AI and other technologies, there is growing concern that unemployment may escalate further as these systems increasingly outperform humans in efficiency and accuracy across a range of tasks. Unlike previous waves of automation that primarily affected middle-skilled workers, AI poses risk even for higher-wage earners, broadening its impact on the workforce and highlighting the need for proactive measures.
However, AI shall not threaten employment if managed properly. Over time, jobs evolve. Highly lucrative in the 1950s are different from those of today. Today’s jobs have evolved to favor those that are computer literate and digitally skilled. In relation to AI, jobs can be classified into those at high risk of displacement and those that AI can complement. With increasing awareness and use of AI, people can shift from roles prone to displacement to those where AI enhances performance, enabling workers to leverage AI to improve work productivity. AI adoption is dependent on availability of digital infrastructure, and younger, more educated individuals are better positioned to adopt AI. In Uganda, approximately 50% of the population is aged 17 or below. The younger generation often referred to as “dot com children” is therefore well-positioned to adopt AI. If AI education is incorporated from elementary school, Uganda could develop an AI-skilled workforce over the next 15 to 20 years, equipped to leverage AI benefits and earn higher incomes. AI education will also create an eco-system that shall promote growth of the AI industry that could make a significant contribution to Uganda’s GDP. Uganda’s literacy rate has also been steadily increasing, further positioning the country to benefit from AI.
However, the main challenge remains underdeveloped infrastructure such as low effective electricity demand and internet connectivity. Much as 65% of the population has access to electricity, electricity consumption is only 2% of the total energy produced, and only 9% of individuals aged 9 and above have access to internet services [ix] . Although improvements are being made, there is a need to accelerate these efforts. Income levels in the future will also dependent on AI adoption and those who embrace it will likely see higher incomes, unlike those who resist it[x].
AI will therefore transition from a threat to an opportunity if Uganda’s labor force is digitally skilled and the necessary digital infrastructure is installed, as Uganda already has an advantage in terms of age demographics and rising literacy rates. AI awareness and skills training efforts are already underway, and local organizations such as Otic Foundation have been endorsed by MoICT[xi] to promote AI awareness and skilling across the country. With these steps, Uganda is definitely on the path to leveraging the full benefits of AI.
[i] Zhang, C., & Lu, Y. (2021). Study on artificial intelligence: The state of the art and future prospects. Journal of Industrial Information Integration, 23, 100224. https://doi.org/10.1016/j.jii.2021.100224
[ii] Strusani, D., & Houngbonon, G. V. (2019). The role of artificial intelligence in supporting development in emerging markets. International Finance Corporation, Washington, DC
[iii] Alupo, C. D., Omeiza, D., & Vernon, D. (2022). Realizing the potential of ai in africa: It all turns on trust. In Towards Trustworthy Artificial Intelligent Systems (pp. 179–192). Springer.
[iv] International Monetary Fund (2024). Gen-AI: Artificial intelligence and the future of work.
[v] Uwagaba, J., Omotosho, T. D., & George, G. O. (2023). Exploring the Barriers to Artificial Intelligence Adoption in Sub-Saharan Africa’s Small and Medium
[vi] 로빈슨. (2023). Tackling the Youth Unemployment in Uganda [Thesis, 서울대학교 대학원]. https://s-space.snu.ac.kr/handle/10371/194477
[vii] Uganda Bureau of Statistics 2024: The National Population and Housing Census 2024-Main Report, Kampala, Uganda.
[viii] Egessa, A., Nnyanzi, J. B., & Muwanga, J. (2021). Determinants of youth unemployment in Uganda: The role of gender, education, residence, and age. IZA Journal of Labor Policy, 11(1). https://doi.org/10.2478/izajolp-2021-0008
[ix] Uganda Bureau of Statistics 2024: The National Population and Housing Census 2024-Main Report, Kampala, Uganda.
[x] International Monetary Fund (2024). Gen-AI: Artificial intelligence and the future of work.
[xi] Ministry of ICT and National Guidance