Artificial intelligence (AI) continued to dominate the headlines in 2024, with private companies, central banks, and governments alike embracing AI-driven solutions to improve efficiency, cut costs, and drive innovation. This widespread adoption is pushing AI from a niche technology to a critical tool reshaping industries. On the TSX, there are several companies with an AI focus. As businesses continue to prioritize AI integration in 2025, these stocks could emerge as dominant players in Canada's tech sector.

In this article, we'll explore the AI stocks that could dominate the TSX in 2025 and explain why they could be game-changing investments for the years ahead.

Kinaxis stock

Kinaxis (TSX:KXS), the top Canadian supply chain management firm, could be an attractive stock to benefit from AI-driven trends in 2025. KXS stock has risen nearly 25% over the last year to currently trade at $173.65 per share with a market cap of $4.9 billion.

This Ottawa-based company has been trying to blend AI tech with human expertise to tackle some of the most complex challenges in supply chain management. With its innovative Maestro platform, Kinaxis expects to revolutionize how businesses handle supply chain disruptions, improve forecasting accuracy, and make data-driven decisions in real time.

One of the standout features of Kinaxis is its focus on concurrent planning. Unlike traditional ways of doing it, its solutions ensure that every department within an organization operates with the same real-time data, enabling faster, more informed decisions. In addition, the company's machine learning and predictive analytics-powered AI tools help its customers identify risks and opportunities before they even impact operations. The company's patented AI algorithms, which are integrated into its platform, also automate demand forecasting and streamline inventory management.

In the 12 months ended in September 2024, Kinaxis saw a 14% YoY (year-over-year) increase in its total revenue to US$471.2 million, with the help of robust growth in its recurring subscription revenues. As the demand for its AI solutions surges, I expect the company's topline growth to improve and drive its share prices higher.

BlackBerry stock

The Waterloo-headquartered enterprise software company BlackBerry (TSX:BB) could also see strong growth in 2025 and beyond as it continues to shift its focus toward AI-driven solutions in cybersecurity and IoT (Internet of Things).

Over the last three months, BB stock has jumped by around 70% to currently trade at $5.34 per share with a market cap of $3.2 billion.

Last month, BlackBerry announced an agreement to sell its AI-driven Cylance endpoint security business to Arctic Wolf. Although this $160 million deal may seem like a divestment, BlackBerry plans to continue reselling its Cylance endpoint security solutions as part of its offerings to government and enterprise clients. This partnership is expected to allow BlackBerry to maintain access to Cylance's cutting-edge AI-driven technology while offloading operational responsibilities to Arctic Wolf.

On the IoT front, BlackBerry's recent rebranding of its IoT division to QNX signals a renewed focus on its leadership in software-defined vehicles and embedded systems. By integrating AI into its foundational software, the company could benefit from increased adoption of AI-powered solutions in automotive and IoT industries, which could drive this AI-focused stock higher.