Canada Artificial Intelligence (AI) market:
Artificial Intelligence (AI) refers to the ability of digital computers to perform tasks that commonly require human intelligence. AI often learns from data stored in AI systems to respond and understand to decisions, language, and problems. AI capabilities such as computer vision, automated decision-making, and conversational interfaces, have become embedded in various industries’ standard business processes. AI ecosystem consists of advanced technologies such as machine learning, deep learning, robotics, artificial neural networks, and natural language processing.
Major drivers and constraints of the market:
The Canada Artificial Intelligence (AI) market is majorly driven by the growing IT and telecommunication sector, increasing foreign direct investments, and rising adoption of AI-based technologies in various industries across the country. Canada is considered a global technology hub for the IT and telecommunications sector due to the emergence of various SMEs and foreign direct investment (FDI) inflows. For instance, the United Nations Conference on Trade and Development in 2018, stated that Canada’s FDI reached USD 66 billion, with the establishment of new tech companies is expected to fuel the market growth.
Furthermore, the rising penetration of advanced technologies and the Internet of Things (IoT) has significantly contributed to the growth of Canada artificial intelligence (AI) market. The increasing investments by the multinational giants in research and development are constantly fueling technological advancements in various sectors. The growing demand for artificial intelligence among the several end-use verticals such as IT, BFSI, automotive, manufacturing, food & beverages, transportation, and retail is predicted to fuel the growth of Canada AI market in upcoming years. For instance, in 2019, the Government Department of Canada stated that Canada had registered more than 43,200 new enterprises nationwide, especially in the Information and Telecommunications sector. The ICT industry has contributed USD 210 billion in revenue to the country’s economy is predicted to propel the AI market in Canada.
Additionally, the growing popularity of several life-saving devices and the auto-pilot feature in new electric vehicles is significantly boosting the growth of the AI market. The shifting focus of users toward digitalization and technological advancement is positively influencing the Canada artificial intelligence market. The increasing use of AI-based technologies in the healthcare sector such as remote patient monitoring (RPM) solutions. RPM is used for enhancing clinical assessment and decision-making while reducing the probability of hospitalization. With the rising prevalence of diabetes, cancer, and cardiovascular diseases, the increasing use of RPM solutions is projected to propel the AI market in Canada. However, the strict rules & regulations and the unavailability of skilled AI experts are factors that may hamper the growth of Canada artificial intelligence (AI) market.
Based on technology, Canada Artificial Intelligence market is segmented into machine learning, natural language processing (NLP), machine vision, and others. The natural language processing segment is predicted to grow with the highest CAGR during the forecast period due to the rising demand for NLP AI technology to interact with consumers in different sectors such as aviation, banking and finance services, fast-moving consumer goods, and others. NLP technology in Canada is broadly used by financial service providers such as banks, credit card companies, investment funds, brokerages, and others, for efficient decision-making, enhanced data analysis, and risk management.