This paper presents a comprehensive literature review on the application of artificial intelligence techniques in Ugandan healthcare and the medical industry. Recently, the data generated in the health domain has exceeded the human cognitive capacity to analyze it effectively. Several approaches have been suggested to address this problem but in several studies, Artificial Intelligence has been found to be the best and the most effective solution as far as speed, accuracy, robustness, and reliability are concerned. We searched and reviewed AI health-related peer-reviewed articles in ScienceDirect, Springer, PubMed, arXiv, IEEE Xplore, medRxiv, PLOS, Wiley Online Library, BioMed Central, bioRxiv, and Scopus published between 2012 and 2022. This literature survey covered 38 research papers, and the review showed that the most applied AI subfields are statistical learning, machine learning, and deep learning. The paper highlights the challenges, gaps, and opportunities required to improve and advance the application of AI in the Ugandan healthcare industry. We believe this study will help researchers and policymakers to foster AI innovations better.