Artificial Intelligence (AI) has been one of the hottest topics on the stock market in 2024. The use of AI is expected to help streamline work processes and create business efficiencies. The applications of AI are wide and broad.

While U.S. stocks have been the biggest beneficiaries of the AI excitement, Canada also has some businesses that are benefiting from AI. If you have $3,000 to deploy into the trend, here are three AI stocks to buy and hold for the long term.

A small cap AI stock for the future

If you are looking for an AI stock in its early innings, Zedcor (TSXV:ZDC) could be on your list. With a market cap of $167 million, this micro cap stock has significant potential.

Zedcor provides mobile surveillance and security solutions across North America. It has developed mobile surveillance towers that utilize AI to detect and respond to intruders and alarm triggers.

The company can provide a very cost-efficient monitoring program, especially when compared to traditional methods (like security patrol). As a result, it has garnered strong demand from the construction industry, safety-sensitive industries, and equipment/asset heavy workplaces.

It recently announced second quarter results. Revenues rose 20% to $7.4 million. Adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) increased 47% to $2.7 million.

The company is also profitable on a per share basis. With a technological and economical edge, it has a $10 billion market to grab in the years ahead.

A mid-cap financial stock with a long growth runway

Propel Holdings (TSX:PRL) has exploded in 2024. Its stock is up 100% year to date! Now, it is not up because it is an AI stock necessarily. It is up because it has delivered extraordinary results. For the first six months of the year, revenues and earnings per share (EPS) increased 48% and 80%, respectively!

Propel provides small-to-medium sized loans to non-prime consumers in the U.S. and Canada. The company utilizes an underwriting platform that is driven by AI. It helps it originate, analyze, and underwrite loans quickly and efficiently.

With its platform, the company can analyze hundreds of different variables that give it an edge in predicting the success of a loan. It also enables the lender to scale quickly around the world. Currently, it only operates in Canada and the U.S., but it could easily expand further with time.

Propel has a market cap of $885 million. However, if it continues to execute, this small cap could become a mid-cap soon.

A large-cap stock with rising AI exposure

If you are looking for a larger cap AI stock, Thomson Reuters (TSX:TRI) may one day headline the list. It provides a mix of software services that cater to the legal, accounting, and government sectors.

The information conglomerate has significant amounts of proprietary content and data. It is incorporating AI across its platform so that users can unlock the plethora of research, data, and insight more efficiently and thoroughly.

Thomson Reuters also has a venture fund focused on AI and data infrastructure in the legal and accounting sectors. These two dozen investments lay the groundwork for a robust merger and acquisition program.

Thomson Reuters has delivered stellar returns for many years. Its stock is up 150% over the past five years and 380% over the past 10 years. It is not the cheapest stock.

However, with a high level of recurring revenue, a strong competitive moat, and a great balance sheet, this stock should steadily keep delivering for long-term shareholders.