Canada is at the forefront of artificial intelligence development being home to the third largest pool of AI innovators. Investments are increasingly streaming in, from both the public and private sector, as the race to come up with the next big thing leveraging the technology heats up. Kinaxis Inc. (TSE:KXS), Horizons S&P/TSX 60 Index ETF (TSE:HXT), and NexJ Systems Inc. (TSE:NXJ) are some of the Canadian companies riding high as the AI evolution continues to take over.
Canada AI Landscape
Billed as a set of complex and powerful technologies, artificial intelligence is poised to touch and reform various sectors of the Canadian economy. The admission has since seen the country become home to excellent research centers, touching on multiple sectors from fintech to MedTech among other fields.
Minister of Science and Economic Development Navdeep Bains has since launched an Advisory Council on Artificial Intelligence. The Council is tasked with the responsibility of advising the Government on the best way to build on the Country’s AI strengths. The Council is also to identify opportunities and focus on creating economic growth by ensuring AI developments reflect the country’s values.
The formation of the Council comes hot on the heels of the Canadian Government awarding a $49 million grant. The amount is to go towards the establishment of a Canada-wide Artificial Intelligence health data platform.
Under the new platform, researchers and doctors are to work together to accelerate the development of personalized treatments. The AI platform is to connect 100 partners across Canada, including health care institutions as well as small, medium large companies and research foundations. Together, the institutions are to establish an AI Health data platform for connecting different sources of health data to accelerate research.
Top AI Stocks Canada
Amidst the development in the AI landscape in Canada, Public companies leveraging AI capabilities have seen their popularity and valuation skyrocket in the market. Just as has been the case with marijuana stocks, AI stocks continue to elicit strong interest given the promise of huge growth in the sector.
Kinaxis is one of the companies that continues to elicit keen interest, given the investment it has made on AI as it seeks to improve its predictive capabilities. The supply-chain management and software company has seen its market value surge by more than 200% since going public in 2014.
Being a software company, Kinaxis stands an excellent chance to leverage AI to enhance service delivery and in the process, strengthen its core business. The company has already signed a groundbreaking contract with Toyota, the world’s second largest manufacturer, to manage its automotive supply chain processes.
The stock has pulled lower in recent months, presenting an opportunity to buy at a discount, given the tremendous prospects at stake amidst the innovation around AI.
Horizons Exchange Traded Fund Provides an opportunity to gain broad exposure to the Canadian AI landscape. This is the first Canadian AI-enabled ETF that reacts to top 60 stocks using an algorithm that learns, analyzes and chooses stocks, based on data.
Unlike other ETFs, Horizon uses artificial intelligence program dubbed MIND to control its choices. The program continually adapts to data changes when it comes to stock selection.
Horizon is an ideal AI-enabled ETF for people looking for strong short-term growth. The stock has continued to grow throughout the volatile market. It is already up by more than 15% for the year and trending higher.
Nexj Systems is a microcap AI play worth paying close watch to, despite coming under immense pressure in recent years. The company boasts of tremendous potential having devised Nexj Customer Data Analytics and Intelligence preprocessor as its flagship AI project.
The AI-powered platform seeks to allow companies to create a complete view of customer data and be in a position to utilize it in various projects. The company expects the platform to enable firms to provide up to date data to machine learning to refine processes.