This manuscript examines the legal and ethical implications framework for the application of Artificial Intelligence in Ugandan Centenary banks, with a case study focus on the Lango Sub-Region of Northern Uganda. As banks increasingly deploy AI for credit scoring, fraud detection, customer onboarding, chatbots, anti-money laundering monitoring, and risk analytics, the technology promises greater efficiency, lower operating costs, and improved financial inclusion. However, these benefits are accompanied by significant legal and ethical concerns, including privacy infringement, algorithmic bias and opacity in automated decision-making, cybersecurity exposure, unlawful profiling, data localization issues, and uncertainty around accountability when AI systems cause harm. The manuscript situates these concerns within Uganda’s emerging legal and regulatory environment, including the Constitution of the Republic of Uganda, the Data Protection and Privacy Act, 2019, the Computer Misuse Act, 2011, the Financial Institutions Act, and sectoral supervision by the Bank of Uganda. It further engages ethical principles of fairness, transparency, accountability, explainability, non-discrimination, human oversight, beneficence, and proportionality. Using the Lango Sub-Region as a contextual lens, the paper argues that AI adoption in commercial banking must be governed by a hybrid framework combining statutory compliance, internal bank governance, regulatory supervision, and context-sensitive ethical safeguards. The manuscript concludes that Uganda requires clearer AI-specific rules, stronger supervisory guidance, institutional audit mechanisms, and bank-level governance protocols to ensure that AI innovation does not erode consumer rights, trust, and financial stability.
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Volume 4 | Issue 3 | Year 2026 | Article Id: AIR-V4I3P101 DOI: https://doi.org/10.59232/AIR-V4I3P101
Legal and Ethical Implication Framework for Artificial Intelligence Application in Centenary Bank Uganda Limited
Okwir Bongoni Ojok, Lawrence Nkamwesiga
| Received | Revised | Accepted | Published |
|---|---|---|---|
| 20 Jun 2026 | 17 Jul 2026 | 25 Aug 2026 | 28 Sep 2026 |
Citation
Okwir Bongoni Ojok, Lawrence Nkamwesiga. “Legal and Ethical Implication Framework for Artificial Intelligence Application in Centenary Bank Uganda Limited.” DS Journal of Artificial Intelligence and Robotics, vol. 4, no. 3, pp. 1-8, 2026.
Abstract
Keywords
Artificial Intelligence, Uganda banking, Legal framework, Ethical AI, Lango sub-region, Northern Uganda, Uganda.
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