Dar es Salaam. Tanzania could add $1.3 billion to its economy over the next decade through artificial intelligence (AI), but experts warn that gaps in digital access and skills could prevent young people from benefiting from the emerging opportunities.
Research by Ayre Think Tank estimates that Al could contribute $1.307 billion to Tanzania’s gross domestic product (GDP) over 10 years under a moderate adoption scenario. The projected gains range from $631 million under a conservative scenario to $1.983 billion under an optimistic one.
However, experts say the economic potential will not automatically translate into jobs and higher incomes. Realising the gains will require investment in digital infrastructure, practical training and locally developed solutions that address everyday challenges.
Speaking to The Citizen, Neurotech Company Limited founder and chief executive Kalebu Gwalugano said unequal access to technology could deepen existing economic inequalities.
“The gap will widen if we leave access to purchasing power alone. A young person with a laptop, reliable internet and money for Al subscriptions has a very different starting point from someone who shares a phone and struggles to afford data,” he said.
He called for affordable internet, reliable electricity and access to digital devices, including shared facilities in schools, vocational colleges and community learning centres. Mr Gwalugano also urged developers to create Al tools that reflect local realities, particularly Kiswahili services and applications that can function with limited internet connectivity.
“Someone should be able to benefit through a phone call or a simple message without first learning a complicated application,” he said. He said training and funding should also reach rural communities, where young people could develop solutions to local problems, such as helping farmers’ cooperatives manage orders and access agricultural information.
Rather than measuring progress by the number of people attending Al workshops, he said, the focus should be on whether the skills acquired improve livelihoods.
The challenges are reflected in the Ayre Index, which ranked Tanzania 25th among 56 Commonwealth countries in youth Al readiness, with a score of 45.5 out of 100 against a benchmark of 53.
The research also gave the country 2.3 out of 10 in education and training, pointing to the need for stronger practical learning.
Mr Gwalugano said existing digital education strategies and Al guidelines needed to translate into classroom practice, supported by better-trained teachers.
“Education should give students opportunities to apply these skills to real problems.
A student could work with a local shop to improve stock records or help a tourism business handle enquiries, then demonstrate what was improved,” he said.
Technology enthusiast Dominick Dismas, meanwhile, warned that automation could reduce demand for workers performing routine tasks, potentially limiting entry-level employment opportunities for young people.
“We should be honest that some routine tasks will require fewer people, and some entry-level opportunities may shrink. Employers must also take responsibility for retraining staff and creating ways for young people to gain experience,” he said.
He called for more locally owned Al businesses, arguing that start-ups needed opportunities to test their products through paid pilot projects and fair procurement processes.
“The strongest evidence of your ability is a solution that works for someone,” he said, advising young people to understand particular industries and develop solutions to specific problems.
Al expert Mariam Raphael said the projected economic gains should be treated as an opportunity rather than a guaranteed outcome. “It becomes real when businesses use Al to serve more customers, reduce waste, improve productivity or create services people will pay for,” she said.
She cited customer communication and services that help people access information and book ferry tickets as examples of practical applications.
Technology expert Gilbert Anderson also identified agriculture, tourism, hospitality, education, logistics and small-business operations as sectors where young people could develop Al-powered solutions.
“In agriculture, they can help cooperatives, suppliers and processors manage orders, communicate with farmers, connect with buyers and reduce losses,” he said.
He advised young entrepreneurs to identify specific customer problems, test whether their solutions deliver measurable improvements and establish whether there is a market for them.
Meanwhile, Tanzania has introduced initiatives to strengthen Al skills, including the ElevateHer AI Programme, launched in March 2026 by Absa Bank Tanzania, Microsoft and Women in Tech Global. The programme aims to train 5,000 young women.