Artificial intelligence is rapidly transforming economies and societies worldwide, but Africa’s position in this shift is defined by both major opportunity and significant structural disadvantage. Globally, AI investment, infrastructure, and regulation are advancing fastest in North America, Europe, and Asia, while the Global South continues to lag in adoption and computing capacity. In Africa, AI could unlock an estimated $1.2–1.5 trillion by 2030, yet the continent still faces a deep digital divide, limited data Centre infrastructure, and severe shortages in advanced computing access. East Africa is emerging as a promising subregional leader, with Kenya, Tanzania, Rwanda, and Uganda showing growing momentum in AI adoption across sectors such as education, healthcare, fintech, and public service delivery. In Uganda, AI uptake remains nascent but is evolving through research, private sector innovation, and early policy development, including the establishment of a National AI Taskforce. However, progress is constrained by weak infrastructure, limited local technical skills, high costs, digital taxation, and an incomplete legal framework that does not yet adequately address key AI governance issues such as algorithmic transparency, automated decision-making, and rights to explanation. To harness AI for inclusive development, Africa and Uganda in particular must invest strategically in infrastructure, skills, governance, and innovation ecosystems that ensure AI advances equity, competitiveness, and sustainable impact.