Why AI Might Be Canada’s Most Lucrative Sector in the Next Decade

Artificial intelligence is set to boom over the next decade, and Canada could see a large part of that action. That’s why this stock belongs on your radar.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published October 16, 2023 10:30 am EDT

| More on: OTEX

Artificial intelligence (AI) is rapidly transforming industries and economies around the world. Yet Canada is well positioned to become a global leader in this emerging sector. With its strong research base, talented workforce, and supportive government policies, Canada is poised to capitalize on the immense potential of AI to drive economic growth and create jobs in the next decade.

In this article, we’ll explore why AI stocks could be the most lucrative Canadian industry in the next decade. Further, we’ll discuss why Open Text (TSX:OTEX) is a compelling choice for investors.

Canada’s AI potential

According to a report by the Canadian Chamber of Commerce, AI could add $153 billion to the Canadian economy by 2030, creating over 375,000 new jobs. The report also found that AI could boost Canada’s productivity by 15% and increase exports by $24 billion. These statistics paint a promising picture for Canada’s AI industry, and investors are taking note of the sector’s growth potential.

Canada boasts several key advantages that position it as a prime destination for AI investment and development. Our country has a robust research base in AI, with world-renowned universities and research institutions such as the University of Toronto, McGill University, and the University of Alberta. These institutions are at the forefront of AI research and are attracting top talent from around the world.

Furthermore, the number of Canadians working in AI-related fields has increased by over 50% in the past five years. This growth can be attributed in part to the Canadian government’s investments in AI education and training programs, ensuring a steady supply of skilled professionals. The Canadian government is committed to fostering the AI sector’s growth. Initiatives like the Pan-Canadian AI Strategy and the National Digital Economy Strategy provide financial support and incentives for Canadian businesses and researchers to develop and deploy AI solutions.

Open Text: A strong choice

Open Text stock, one of Canada’s largest software companies, stands out as an excellent choice for investors looking to tap into the booming AI industry. The company recently completed a $6 billion acquisition and has shifted its focus toward AI. It now collaborates with global organizations transitioning from the Cloud and Digital era to the AI and Cognitive era. These partnerships include major players like Chevron, Ulta Beauty, and Jaguar/LandRover.

Open Text stock’s commitment to AI is reflected in its new product updates. These include innovations in AI and cybersecurity, AI-led DevOps, and enhancements to Cloud Editions 23.4, specifically designed for mid- and large-size organizations modernizing their IT infrastructure with analytics and AI.

Open Text world

During its recent Open Text Word event, the company announced several new AI aviator programs. They are as follows:

IT Operation Aviator: Enhancing user experience by providing Google-like search capabilities and automatic issue reporting.
DevOps Aviator: Identifying and mitigating risks in project and product delivery.
Content Aviator: Facilitating content retrieval in vast document repositories.
Experience Aviator: Generating content based on user input, similar to OpenAI.
Business Network Aviator: Analyzing market conditions to make data-driven recommendations.
Aviator Platform for Technologists: Providing tools and connectors for better communication with AI models.
Aviator Search for Techs: A powerful search tool across various data types.
IoT Aviator: Managing and monitoring all devices in a business.

Open Text’s commitment to AI is further emphasized by the establishment of an Aviator Lab. This allows customers to collaborate with AI experts and accelerate their AI projects.

Open Text’s strong performance is evident in its stock performance. With a 2.75% dividend yield and shares up 34% in the last year, it’s an attractive choice for investors looking to benefit from the AI industry.

Bottom line

The Canadian AI sector is on the cusp of explosive growth. This is driven by strong research institutions, a skilled workforce, and government support. Open Text stock’s focus on AI and its Aviator product line positions it as a standout choice for investors. With its potential to drive economic growth and job creation, the AI industry, led by companies like Open Text, could indeed be the most lucrative Canadian industry in the next decade. As AI continues to evolve, the opportunities in this sector are boundless. This makes it an exciting prospect for investors and businesses alike.