Abstract

The rise of digital banking and financial technologies has transformed the financial sector in Uganda, but it has also 
increased vulnerability to cyber threats. Cybersecurity challenges such as phishing, malware, ransomware, and 
insider threats have posed significant risks to banks and other financial institutions. Artificial Intelligence (AI) has 
emerged as a critical tool for enhancing cybersecurity through predictive analytics, real-time threat detection, and 
automated incident response. This review examines the applications of AI in protecting networks within Uganda’s 
financial sector, analyzing the effectiveness of machine learning algorithms, intrusion detection systems, and 
anomaly detection tools. Through a combination of case studies, policy analysis, and technology assessment, this 
article explores how AI mitigates cyber risks, identifies implementation challenges, and highlights opportunities for 
improving resilience against cyberattacks. The findings underscore the potential of AI-driven cybersecurity 
frameworks to safeguard financial data, optimize threat response, and strengthen regulatory compliance in Uganda.