Canada has emerged as a global leader in artificial intelligence (AI), largely due to a strong support network of grants, funding, and tax credit programs for AI-focused projects awarded to a variety of businesses and research institutions.
As the field of AI continues to revolutionize a variety of industries, from healthcare and finance to manufacturing and transportation, the Government of Canada has commited to substantial innovation funding for both new and established businesses to develop AI-driven solutions.
In this article, our team explores and breaks down the top government funding programs currently available that support the adoption, development, and research for AI in Canada, including the Regional Artificial Intelligence Initiative, NRC-IRAP, SR&ED, the Strategic Innovation Fund, and Mitacs Accelerate and Elevate programs.
The Regional Artificial Intelligence Initiative (RAII): Promoting Local AI Development
The Regional Artificial Intelligence Initiative (RAII) is designed to foster regional development in AI and ensure that AI innovations are distributed throughout Canada, not just concentrated in major hubs like Toronto or Montreal. Through RAII, companies in regions across Canada can access funding to support AI research and development (R&D) projects that align with local economic priorities.
Please note: While the link above is focused on the FedDev Ontario stream of RAII, the program’s overall funding is available Canada-wide. Contact our team to learn more.
The goal of RAII is to boost AI innovation by supporting smaller businesses, non-profits, and academic institutions access the resources and expertise needed to compete in a rapidly evolving AI market.
RAII provides funding for R&D projects across various industries, encouraging companies and researchers to use AI to tackle specific challenges relevant to their region. This program is essential for Canadian businesses looking to establish a sustainable presence in AI, especially in areas where access to venture capital and tech infrastructure may be limited.
NRC-IRAP and SR&ED: Fueling Innovation through Funding and Tax Credits
Two crucial programs consistently supporting R&D in Canada are the National Research Council of Canada Industrial Research Assistance Program (NRC-IRAP) and the Scientific Research and Experimental Development (SR&ED) Tax Incentive Program.
NRC-IRAP can provide direct funding support for Canadian businesses engaged in AI and tech-related R&D projects. IRAP’s flexible grant structure allows companies to apply for assistance in various stages of development. Eligible applicants can access contributions of up to 60-80% of internal technical labour and subcontractor expenses towards a specified innovation project.
In addition to IRAP, the SR&ED program is a powerful tax incentive that can promote AI innovation across industries by offering tax credits for qualifying R&D activities. Unlike direct grants, SR&ED provides tax relief on eligible expenses, which can include salaries, materials, and overhead costs related to AI research. SR&ED can provide tax credits for up to 69% of labour and overhead costs, 36% of contractor costs, and 45% of material costs.
Strategic Innovation Fund and Mitacs: Boosting Collaborative AI Research
For companies and research institutions seeking larger-scale support, Canada’s Strategic Innovation Fund (SIF) and the Mitacs Accelerate and Elevate programs offer unique funding opportunities aimed at promoting collaborative R&D and commercializing AI technology.
With a focus on economic growth and job creation, SIF targets large projects with the potential to scale and bring Canadian innovations to the global market. The program offers contributions (both repayable and non-repayable) valued up to 50% of project costs for projects requesting at least $10 million in contributions. This means a minimum project size must be $20 million.
The Mitacs Accelerate and Elevate programs provide additional funding for AI research through collaborative partnerships organized between industry and academia. Through Accelerate, companies can partner with university researchers and access funding for internships that foster hands-on experience in AI. Elevate extends this collaboration by funding postdoctoral fellowships, allowing companies to work with highly skilled researchers on long-term projects. These programs not only enhance AI talent development in Canada but also create a mutually beneficial partnership where businesses gain access to cutting-edge research, and students and researchers acquire industry-relevant experience.
Government Funding Support for AI Implementation
Canada’s diverse range of AI grants, loans, and tax credit programs reflects the country’s commitment to becoming a global leader in artificial intelligence solutions. Through initiatives like the Regional Artificial Intelligence Initiative, NRC-IRAP, SR&ED, the Strategic Innovation Fund, and Mitacs programs, Canada provides robust support for AI R&D across businesses, sectors, and regions.
The funding programs in this article can be utilized by businesses in Canada to empower and drive AI innovation forward, ultimately contributing to economic growth, job creation, and technological advancements that benefit all Canadians.
As AI continues to transform the way people live and work, these programs can and will play a crucial role in fostering a vibrant and competitive AI ecosystem across Canada.