AI Adoption in Rwandan and Swedish Startups: A Comparative Study Through a Contextual Lens

Abstract

This master’s thesis examines how entrepreneurial ecosystems in Rwanda and Sweden adopt Artificial Intelligence (AI). It compares how different actors within these envi ronments support or hinder technological integration. It builds upon the theory of Na tional Innovation System (NIS), the role of the government, and digital dependencies. To answer the research question, the study uses semi-structured interviews with stake holders representing startups, government, investors, academia, and innovation agencies in both countries. The findings section presents that Swedish companies are supported by well-established institutions, coordinated funding mechanisms, and organised innova tion agencies, but AI spread is limited by fragmentation and regulatory ambiguity. On the contrary, Rwandan entrepreneurs benefit from a strong government vision but are constrained by infrastructural shortfalls, talent scarcity, and a lack of innovation mech anisms. The three comparative dimensions in AI adoption are related to applications of AI, government, and actors’ roles on AI integration, and reliance on external technology. The research adds knowledge to understand AI implementation across different contexts and provides practical recommendations for policymakers and innovation stakeholders who wish to create a better environment for AI integration in startups.