Canada’s artificial intelligence sector is fuelling innovation, job creation and private sector investment – and University of Toronto researchers and entrepreneurs are playing a central role in that success, according to a report by Ottawa’s Global Advantage Consulting Group.
The report, prepared for U of T, found that Canada’s unique combination of public investment, private capital, research capacity and talent has generated over 50,000 jobs and attracted nearly $3 billion in investment since 2010, with the number of active AI firms in Canada doubling to more than 670 since 2015.
U of T alone has produced 81 active AI startups, according to Global Advantage, a research and analytics firm that provides ecosystem mapping and analysis services to private and public sector clients. In total, AI-powered startups connected to U of T have raised $183 million in funding and created over 600 jobs in the last five years, the report says.
Vivek Goel, U of T’s vice-president, research and innovation, and strategic initiatives, says the report offers further evidence of the success of the federal government’s Pan-Canadian AI Strategy, launched in 2017 with a $125-million commitment over five years.
“Canada, and Toronto in particular, have long been recognized as global hubs of AI research thanks to the pioneering work of people like [U of T University Professor Emeritus] Geoffrey Hinton, but in the past many people trained in U of T’s machine learning group ended up going abroad to work for big tech companies,” says Goel.
“This report shows that the Pan-Canadian AI Strategy has helped create the conditions necessary to retain that talent in Canada – presenting opportunities to be involved in further research and training – so we can have the talent supply needed to fuel Canadian research, innovation and application in business sectors.”
As an example, Goel cites the impact of the Vector Institute for Artificial Intelligence, launched three years ago with $50 million in support from the government of Ontario and another $80 million from industry partners, in “taking what was happening in the university, connecting it with the business community and getting it out into the marketplace before people in other countries could do it.”
The investment in Canada’s AI research foundation is now yielding important applications and advances in the fight to contain and treat the COVID-19 virus. A few of the research projects detailed in the report – titled Canada’s AI Ecosystem: Government Investment Propels Private Sector Growth – include:
Health-related AI applications have drawn particular interest from private sector investors, with over 15 per cent of AI-related private investment between 2015 and 2019 going to companies operating in health care and related areas like cloud computing and cybersecurity.
Deep Genomics, an AI-powered drug discovery startup co-founded by U of T Professor Brendan Frey of the Edward S. Rogers Sr. department of electrical and computer engineering in the Faculty of Applied Science & Engineering, is one of many AI startups in the health-care space. The company has so far raised $61 million, including a recent $40-million Series B financing, as it works to develop a drug candidate for Wilson disease, a rare and potentially fatal genetic disorder, based on calculations performed by its systems.
Brendan Frey of the Faculty of Applied Science & Engineering co-founded Deep Genomics, which has so far raised $61 million as it works to develop a drug candidate for a rare and potentially fatal genetic disorder (photo by Johnny Guatto)
U of T startups are also applying AI to a variety of other problems, from medical imaging to quantum computing and consumer research. The report underlines that Canada is an innovation leader in the AI sector, producing the most AI patents per million people among the G7 countries and China, while Toronto “has attracted the densest cluster of AI startups in the world.”
Blue J Legal, a Toronto startup co-founded by three members of U of T’s Faculty of Law, uses AI to predict the outcomes of tax and employment law cases. The company launched its Canadian tax law product in 2017 and employment law offering in 2018. In 2019, it expanded into the U.S. tax law market, where it has already secured more than a dozen law firms as clients.
Both Blue J Legal and Deep Genomics emerged from U of T’s expansive entrepreneurship ecosystem, having received early support from CDL and UTEST – two of U of T’s many startup accelerators.
Several of U of T’s AI startups will be in focus this week during Collision at Home, the online edition of one of the world’s fastest-growing tech conferences, which draws speakers, entrepreneurs, inventors, investors and business leaders from around the world. The event is being held virtually this year because of the COVID-19 pandemic. But U of T entrepreneurs, researchers and students will still have a major presence, with more than two dozen U of T startups scheduled to participate.
A rendering of the Schwartz Reisman Innovation Centre on College Street (rendering by Weis/Manfredi)
In all, U of T’s AI programs attracted $244 million in research funding between 2015 and 2019 – a period that saw substantial increases in funding for AI research from the federal government. This, in turn, has allowed Canada to outperform many countries in two key metrics: field-weighted citation impact of AI research publications and academic-corporate collaborations, the report says.
The report also notes that the expanding AI ecosystem around U of T is attracting philanthropists in addition to investors. That includes a $100-million gift to U of T from business leaders Heather Reisman and Gerald Schwartz. The money is being used to construct the Schwartz Reisman Innovation Centre, a 750,000 square foot complex that will anchor U of T’s cluster of AI and biomedical researchers, as well as entrepreneurs and their startups. It will also be home to the Schwartz Reisman Institute for Technology and Society, which will explore the social implications of AI and other emerging technologies.
“If you look at the most successful innovation ecosystems, they always have an anchor academic institution – a leading global university; they always have anchor multinational corporations and they have a thriving startup ecosystem,” Goel says.
“We have all those pieces coming together around the AI and tech sector here.”
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
