High efficiency, high reliability and excellent dynamic performance have been key aspects considered in recent years when selecting motors for modern drive systems. These features characterize permanent magnet synchronous motors (PMSMs). This paper presents the application of continuous wavelet transform (CWT) and artificial intelligence (AI) techniques to the detection and classification of PMSM stator winding faults. The complex generalized Morse wavelet used for CWT analysis of three different diagnostic signals—the stator phase current, its envelope and the space vector module—is used to extract the symptoms most sensitive to the interturn short circuits (ITSCs) at the incipient stage of the damage. The effectiveness of automatic stator winding fault classification is compared for three selected ML algorithms: multilayer perceptron, support vector machine and k-nearest neighbors. The effect of the ML models’ hyperparameters on their accuracy is also verified. The high effectiveness of the proposed methodology is confirmed by the results of the experimental verification carried out for different load torque levels and supply voltage frequency values.