Interested in AI Funding? Apply to the FedDev Ontario Regional Artificial Intelligence Initiative
Offering $200 million in support through regional agencies such as FedDev Ontario, the Government of Canada has joined the global stage in employing artificial intelligence (AI) to help optimize technologies and processes across the country.
This newly announced funding program offers businesses access to funding support with the goal of bringing new AI technologies to market and speeding up AI adoption in core industries such as manufacturing, agriculture, and clean technology.
FedDev Ontario is now accepting applications to the Regional Artificial Intelligence Initiative (RAII) funding program until December 20, 2024.
Projects can be related to optimizing product solutions and technologies with AI, or for the adoption and integration of AI solutions and technologies that already exist to help businesses strengthen their operations.
About the Regional Artificial Intelligence Initiative (RAII)
Through the Regional Artificial Intelligence Initiative (RAII) program, businesses can receive funding for AI projects that will optimize their business’ products, technologies, systems, and processes. Available via two separate pillars, AI Productization and Commercialization and AI Adoption. Eligible applicants can apply for AI support for one or both pillar programs.
Pillar 1: AI Productization and Commercialization
Through this pillar of RAII, FedDev Ontario will support projects that enable businesses and organizations to bring AI solutions and technologies from the lab to the marketplace.
Eligible applicants can receive a fully repayable, interest-free loan up to $2.5 million for support of up to 50% of eligible project costs.
Eligible projects should focus primarily on the productization or commercialization of responsible AI or AI-driven solutions. FedDev Ontario will prioritize projects that:
- Demonstrate positive market traction, such as product sales, export potential, or domestic and global patents; and/or
- Present evidence of support from the innovation ecosystem, such as investment from accredited investors or participation in a Canadian accelerator, incubator, government program, or similar initiatives.
Pillar 2: AI Adoption
Through this RAII pillar, FedDev Ontario will support businesses in adopting or integrating AI-driven solutions to enhance operational efficiency, boost productivity, and strengthen competitiveness.
Eligible applicants can receive a fully repayable, interest-free loan of up to $5 million for support of up to 50% of eligible project costs
Eligible projects must focus on adopting or integrating AI solutions, with a scope that extends beyond purchasing standard AI tools. FedDev Ontario may prioritize projects that drive transformative AI adoption, accelerate strategic AI integration, or develop process re-engineering and capacity in areas such as:
- Healthcare and life sciences (e.g., imaging, diagnostics, drug discovery, precision medicine) and enterprise solutions (e.g., finance, pricing, risk analysis).
- Manufacturing (e.g., aerospace, robotics, smart manufacturing) and mobility (e.g., logistics, automated warehouse operations, route optimization).
Eligibility and Funding Type
In addition to the pillar priorities listed above, eligible applicant criteria includes:
- Small- and medium-sized enterprises, including eligible start-ups
– Contributions will most likely be repayable
- Not-for-profit organizations
– Contributions will most likely be non-repayable
- Businesses that are incorporated in Canada or Ontario
Government Funding for Utilizing Artificial Intelligence (AI) Solutions
In addition to the newly announced Regional Artificial Intelligence Initiative (RAII), the Canadian government offers several other funding programs to support the adoption and integration of AI technologies for innovation and commercialization purposes. Some key programs include:
- The Strategic Innovation Fund (SIF): The SIF provides funding for large-scale, transformative projects, including AI technologies, aimed at boosting productivity and competitiveness in industries like health, manufacturing, and agriculture. It has targeted funding for collaborative projects, especially those driving innovation in digital technologies.
- The National Research Council Canada (NRC) – Industrial Research Assistance Program (IRAP): IRAP provides grants and advisory services for small- and medium-sized enterprises (SMEs) developing innovative technologies, including AI. It supports R&D projects, commercialization, and tech integration for growth-focused companies.
- The Mitacs Accelerate and Elevate Programs: Mitacs offers grants to support internships and fellowships for graduate students and postdocs working on R&D projects with a focus on AI. These programs foster collaboration between academia and industry to advance AI applications.
Each of these funding programs has specific eligibility criteria, with many targeting collaborative projects or offering priority to applications with high innovation, commercialization potential, or economic impact. Learn how to optimize your funding application by connecting with our team of professional funding consultants.
