Top Canadian Artificial Intelligence Stocks for 2024 

With stocks like Nvidia (Nasdaq:NVDA) posting moonshot growth over the past year, Canadian investors are no doubt wondering — should I be investing in “AI stocks?”

Some may be wondering what that even means.

It’s easy to lose sight of this in all the buzz, but artificial intelligence (AI) stocks are simply tech companies that are making incredibly smart machines. Whether it’s using face recognition to unlock your phone or “auto-correcting” your grammatical errors, artificial intelligence has already infiltrated our daily lives. 

And the technology is only getting started: The worldwide AI market is forecasted to grow immensely before the end of this decade. PWC sees AI technology contributing up to $15.7 trillion to the global economy by 2030.¹ 

So if you believe artificial intelligence will play a growing role in our lives, investing in AI stocks could be a smart way to benefit from that prediction.

Here, we’ll break down the ins and outs of AI investing in Canada to help you decide if it’s right for you.

The basics: What are artificial intelligence (AI) stocks??

Artificial intelligence (AI) is a branch of computer science tasked with making machines that emulate human intelligence. These machines make decisions without human interference, and they can learn from past experiences to make better decisions in the future. 

Generally speaking, AI stocks can be broken down into two groups

Companies that make AI

These are tech companies that manufacture and sell hardware, software, and services which make AI possible. They’re also leaders in researching and developing new forms of AI. For example, the AI company C3.ai (NYSE:AI) makes AI software that other companies can buy and use. 

Companies that use AI

These are also tech companies, usually large-caps, that refashion and repurpose AI technology for their own business interests. They might have their own separate AI labs, or buy AI platforms from the companies mentioned above. Amazon (NASDAQ:AMZN), Alphabet (NASDAQ: GOOG), and Netflix (NASDAQ: NFLX) are all companies that fall into this category. 

Both kinds of companies are considered AI stocks, though strictly speaking, only the first is a true AI company. 

Are there any AI stocks in Canada?

Yes! Although the U.S.-listed stocks seem to be getting all the attention, Canada has its fair share of AI stocks. Here are some to consider – they’re all established companies that trade on the Toronto Stock Exchange (TSX):

BlackBerry (TSX:BB)

CGI Group (TSX:GIB.A)

Coveo (TSX:CVO)

Docebo (TSX:DCBO)

Lightspeed Commerce (TSX:LSPD)

Kinaxis (TSX:KSX)

Open Text (TSX:OTEX)

Telus (TSX:T)

This list of Canadian AI stocks to invest in will no doubt evolve as the technology continues to grow at a furious pace. Already, there are dozens of startups that could one day hit the public markets.

Related: List of stocks in the Canadian (TSX) information technology sector

3 Top Canadian AI stocks to watch

For now, let’s look at a few of the top artificial intelligence companies already trading on the Toronto Stock Exchange.

1. Kinaxis  

Headquartered in Ottawa, Kinaxis provides cloud-based SaaS (software-as-a-service) for supply chain management. 

The company uses AI technology to automate time-consuming processes, break down huge amounts of data, and alert companies when a problem in their supply chain is found. Kinaxis’ software also gives companies clear visibility into otherwise complex chains, helping them manage resources better and stop inventories from becoming obsolete. 

We’ve all seen how supply chain problems can cause major grievances around the world. Kinaxis is certainly in a great position for sustainable growth

2. Docebo   

Another SaaS company, Docebo uses AI technology to customize training and learning programs for companies and their employees.

In its simplest form, Docebo is a training platform: it gives companies the tools they need to build training programs for their employees. But on a deeper level Docebo is more than just a way to offer quizzes and forums. Using AI-powered technology, Docebo analyzes how specific employees learn, then feeds them curated content to fill skills gaps and accelerate their education.  

Another pandemic favourite, Docebo’s revenue grew immensely during 2020 and 2021. Though it has cooled off a bit since then, this AI stock is still one you should consider, especially since its clients include major brands like Starbucks, DocuSign, and Thomas Reut

Another SaaS company, Docebo uses AI technology to customize training and learning programs for companies and their employees.

In its simplest form, Docebo is a training platform: It gives companies the tools they need to build training programs for their employees. But on a deeper level, Docebo is more than just a way to offer quizzes and forums. Using AI-powered technology, Docebo analyzes how specific employees learn, then feeds them curated content to fill skills gaps and accelerate their education.  As the company became a pandemic favourite, revenue grew immensely during 2020 and 2021. Though it has cooled off a bit since then, this AI stock is still one you should consider, especially since its clients include major brands like Starbucks (NASDAQ: SBUX) and Thomas Reuters (TSX: TRI).  

3. Open Text

Open Text’s cloud solutions for businesses include customer experience management (CEM), process automation, content management, and analytics, among many others.

The Waterloo company’s new Aviator product uses artificial intelligence in all those areas with technologies such as predictive analytics, generative AI, and conversational search. The AI technology is integrated right into Open Text’s cloud solutions in a bid to streamline workers’ everyday tasks.

Its dividend yield as of this writing is 3.4%.  

How to invest in Nvidia and other AI stocks that trade in the U.S.

If you’re interested in owning some of the bigger names in AI investing, you’ll have to dip your toes in international waters – namely, the U.S.

Most brokerages allow you to easily buy U.S. stocks. Watch out for currency conversion fees, though. You’ll need U.S. dollars in your brokerage account to invest in U.S.-listed stocks, and most brokers will charge 1% to 2% of the amount you’re converting in order to switch your loonies to dollars. 

Here are some of the titans of AI investing – at least for today!

Related: How to buy Amazon stock in Canada (step by step)

Are AI stocks a good buy? 

The AI market is already large and thriving, with plenty of future growth ahead. As such, AI stocks are better suited for investors with a long-time horizon, as it could take years before these stocks hit their peak.

Canadian investors should also be wary of penny and micro AI stocks, as they could come with immense price volatility. Most pure AI companies in Canada — that is, tech companies that focus solely on developing AI technology — have small market caps. If you’re going to invest in emerging AI companies, be sure you evaluate their fundamentals, such as competitive advantages and the business model.

Are there any AI ETFs in Canada?

If you don’t want to invest in individual AI stocks, you can always buy an AI-focused exchange-traded fund (ETF). ETFs are an easy way to invest in a bunch of companies at the same time, so you get more diversification and potentially take on less risk than you would by investing in any single stock.

Some AI ETFs in Canada to consider:

• Evolve Artificial Intelligence Fund (TSX:ARTI)
• Global X Artificial Intelligence & Technology Index ETF (TSX:AIGO)
• GLOBAL X SEMICONDUCTOR INDEX ETF (TSX:CHPS)
• GLOBAL X BIG DATA & HARDWARE INDEX ETF (TSX:HBGD)
• GLOBAL X ROBOTICS & AI INDEX ETF (TSX:RBOT)