3 Canadian Tech Companies Ready to Ride the AI Train

Some business models and technologies are naturally more receptive to AI transformation than others and, consequently, are ready for AI-fueled growth.

It’s clear that artificial intelligence (AI) is not a phase. It’s an actual transformative force already changing our economies, the market, and even the nature of business in unprecedented ways.

So, even if you missed buying stocks that managed to climb the initial AI hype train, you may still have time to invest in tech companies that might transform under AI’s influence and become much more profitable investments than they were in the past.

A chip in a circuit board says "AI"

Source: Getty Images

A customer experience and digital solutions company

Telus International (TSX: TIXT), a subsidiary of the telecom giant Telus, is a newcomer to the market (joined it in 2021). Apart from a few bullish months, the stock has mostly languished in a bear market phase, and it’s now going for a rebranding from Telus International to Telus Digital.

AI has become a core part of the company’s services makeup. In addition to dedicated AI solutions, the company is augmenting its flagship service — i.e., customer experience (CEX) — with AI.

So, the company is ready to ride the AI train to at least two destinations — the transformation of the customer experience segment of the market and carving a place for itself in the typical AI solutions market. Strong growth in either might push the stock from the depths it has fallen to.

A digital experience company

Coveo (TSX: CVO) is also a newcomer to the market and listed as a publicly traded company in 2021. It has been working with and researching AI for more than a decade, starting with behaviour analytics via machine learning in 2012. The company achieved other AI milestones along the way, including LLM integration into its platform in 2021 and semantic search in 2020.

Coveo’s services are heavily intertwined with AI technologies, and any improvements and breakthroughs in the latter would definitely improve the former. A strong enough boost in its business and customer portfolio and, consequently, its finances may translate into appropriate stock growth.

An IT consulting company

Unlike the two newcomers to the market, CGI (TSX: GIB.A) has been a publicly traded company since the last century. It offers a wide range of services and solutions to several different industries. The current service portfolio also includes several AI solutions, including developing an AI vision and deployment of various AI solutions.

Their business expertise allows them to help companies embrace and incorporate AI into their business models and workflows, making them ideal AI transformation partners for a wide range of businesses. As a stock, CGI has been a decent grower, and if the AI front starts getting more traction, its current growth pace may accelerate.

Foolish takeaway

The three tech stocks are ready to ride the AI train to new growth destinations. If you buy now when their performance is still relatively underwhelming, you might be able to capture the upcoming bull market phase in its entirety (for maximum gains).

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends CGI, TELUS, and Telus International. The Motley Fool has a disclosure policy.

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