Artificial Intelligent systems are becoming increasingly complex thanks to increased research and investments into the sector. While AI has the potential to enhance how people live their lives, it also pauses serious ethical challenges when it comes to transparency accountability and responsibility. Shopify Inc. (TSE:SHOP), Kinaxis Inc. (TSE:KXS), and Horizons S&P/TSX 60 ETF (TSX:HXT) are some of the stocks to watch as Canada moves to enhance ethical AI.
AI Technology Inefficiencies
It is not a secret that algorithms on which AI runs can be biased, to the extent of aggravating’ racial and gender-based inequalities. Recent studies have shown that AI-powered systems have higher margins of error for women of color than for light-skinned men.
Amazon, being forced to kill an AI-powered hiring tool after it became biased towards women, continues to affirm ethical issues pertaining to the technology. The European Union has made impressive strides as it seeks to ensure ethical regulation of artificial intelligence.
The introduction of the General Data Protection Regulation is the first piece of legislation that seeks to protect people’s privacy in view of emerging technologies such as Artificial Intelligence. As Europe tries to become a global leader in revolutionary technologies such as AI so is Canada.
The country has become a global hub in the burgeoning AI industry. Montreal, Toronto, and Vancouver are some of the cities that have propelled the country when it comes to AI innovation and development.
Canada is home to the biggest pool of AI talent around the world. The country also continues to generate more AI investment on the acknowledgment that AI will transform people’s way of life as well as spur economic revenue.
While Europe has made strides to regulate how the emerging technologies use people’s data amidst growing privacy debates, there is growing debate that Canada needs to do more. Debates around ethical AI has since forced the federal government to swing into action having become clear that AI could cause serious damage.
Prime Minister Justin Trudeau has acknowledged the need to promote human rights approach when it comes to AI technology. For Canada to enjoy the full benefits of AI as it continues to make its way into key sectors of healthcare education and consumer technology, then guidelines with the potential to foster ethical AI will have to come into play.
Canada AI Stocks
Addressing the dangers present in machine learning algorithms is the only way Canada will be able to spur AI innovation while respecting human rights. As Canada moves to address the challenges that AI poses when it comes to ethics, Shopify appears to be offering an ideal way of gaining exposure to the burgeoning sector.
Shopify has made a name for itself on the provision of a cloud-based platform targeting small and medium businesses. A 45% plus spike since the start of the year comes at a time when the company has started leveraging AI on its platform to help in fraud detection as well as help merchants reduce the cost of operations.
Ottawa based Kinaxis is also making inroads into the AI space as it looks to enhance the detection of trends in operational data. The provider of software solutions for sales and operational planning is using AI technology to enhance supply chains to boost efficiencies of companies using its software. The company is also using the technology for supply chain planning as well as enhancing predictive capabilities and demand sensing.
Horizon became the first Exchange Traded Fund to leverage AI technology in analyzing data and choosing stocks. The ETF reacts to TSX top 60 stocks using an AI-powered algorithm.