The landscape of work is undergoing a transformative shift thanks to the generative artificial intelligence (AI) revolution. Many are now turning to advanced AI tools like OpenAI's ChatGPT, which are quickly becoming more integral than traditional search engines. It's intriguing to consider that today's AI capabilities are just the beginning; these technologies will only grow more sophisticated over time.

These AI applications are proving invaluable across a myriad of tasks, from culinary inquiries to optimizing workplace productivity. Despite some resistance to the rapid development of these technologies, the momentum behind AI innovation shows few signs of slowing down. This is especially true given the fierce competition among companies globally to develop top-tier AI systems.
With this in mind, investors are wise to focus on the long-term AI strategies of companies. This technology is poised to drive significant earnings and sales growth over the next decade. While U.S. tech companies often dominate the spotlight, Canadian AI innovators also deserve recognition and could be a wise investment as the Canadian dollar weakens against the U.S. dollar. Let's explore two Canadian AI stocks that are making waves this May.

Thomson Reuters

Thomson Reuters, typically known as a media entity, should be regarded as a powerhouse in information and data—a modern-day gold in our AI-centric world. Data is crucial for training AI models, and Thomson Reuters is heavily investing in AI initiatives, positioning itself as a burgeoning AI-driven growth company.

Following an optimistic investor day in March 2024, the company has been making significant strides with its generative AI strategy. With the stock up over 151% in the past five years and 8% year-to-date, and trading at a P/E ratio of 26.9, Thomson Reuters is arguably still undervalued given its tech capabilities.

Shopify

Shopify is renowned for its pioneering spirit in disruptive technology since its inception. As it seeks innovative ways to draw merchants in the competitive e-commerce landscape, generative AI has become increasingly crucial. This technology allows digital merchants to streamline operations and delegate time-consuming tasks, enhancing efficiency and sales.

Despite a recent dip, with shares down about 20% from their 52-week highs, many analysts see this as a buying opportunity. With so much potential for growth, Shopify's trajectory in the AI arena looks promising.

This exploration into Canadian AI stocks underscores the potential within the local market and beyond. As we navigate the burgeoning field of artificial intelligence, these companies represent the forefront of innovation and opportunity in the Canadian market.