How to Apply to the NGen AI For Manufacturing Challenge (AI4M): Complete Application Guide

The NGen AI For Manufacturing Challenge (AI4M) funds collaborative projects that integrate artificial intelligence and machine learning into Canadian advanced manufacturing. The program offers non-repayable funding covering 40% of eligible project costs for business-led consortia. As of December 2, 2025, the current intake features an Expression of Interest deadline of June 17, 2025 and a final application deadline of July 17, 2025.

This how-to guide explains the full AI4M application process: who is eligible, the required documents, step-by-step submission, timelines, evaluation expectations, and practical tips to strengthen your proposal. It is written for manufacturers, AI companies, SMEs, and research organizations planning a collaborative commercialization project.

Definition (40–50 words): The AI4M Challenge is a Next Generation Manufacturing Canada (NGen) funding initiative under the Pan-Canadian AI Strategy that co-invests in business-led, collaborative projects commercializing AI/ML solutions in manufacturing. Consortia must include at least one manufacturer, one AI company, and at least one SME.

Overview of the NGen AI For Manufacturing Challenge

AI4M invests up to $13 million to build advanced manufacturing capability in Canada by commercializing AI/ML technologies. Funding supports collaborative projects that deliver measurable productivity, quality, and competitiveness impacts in manufacturing through AI-driven systems, tools, and processes.

Key elements:

• Funding model: Non-repayable contribution covering 40% of eligible project costs.

• Project size: Total project costs between $1.5 million and $8 million.

• Collaboration: Business-led consortia; projects must include at least two industry partners.

• Minimum partners: One manufacturing company and one AI company; at least one partner must be an SME.

• Participants: Research organizations and other contributors may join to add technical knowledge and capacity.

• Focus: Near- to mid-term commercialization of AI/ML in manufacturing (e.g., systems optimization, robotics and automation solutions, rapid prototyping and testing).

AI4M is pan-Canadian and sector-agnostic across manufacturing, including automotive, aerospace, food and beverage processing, metals, plastics, electronics, machinery, medical devices, forestry, and more. Competitive strength comes from strong partnerships, credible commercialization pathways, sound IP and data strategies, and clear benefits to Canadian industry.

Eligibility Requirements

Use this checklist to confirm fit before applying to AI4M.

Consortium and partners

• Two industry partners minimum:

• One manufacturing company

• One AI company

• At least one partner is an SME (small or medium-sized enterprise).

• Business-led consortium (an industry partner typically serves as lead).

• Research organizations, universities, and institutes can participate to contribute expertise.

• Partners must have the technical capacity and financial means to complete their roles.

Project scope and activities

• Core objective is commercialization of AI/ML in manufacturing operations or supply chains.

• Examples include:

• Systems optimization within plant operations or across supply chains

• Development or integration of advanced manufacturing solutions (e.g., robotics, autonomous systems, automation equipment)

• Rapid prototyping and testing of materials, products, or processes enabled by AI/ML

• The project must demonstrate a credible path to market adoption and industry impact.

Budget and funding

• Total eligible project costs between $1.5M and $8M.

• NGen contribution is 40% of eligible costs; the consortium co-invests the balance (typically a combination of cash and eligible in-kind; confirm specifics in finance guidance).

• Costs must be reasonable, directly related to the project, and incurred within the approved project timeline.

Geography and timing

• Projects are conducted in Canada and benefit Canadian manufacturing.

• Activities must align with the intake schedule (EOI and final application deadlines).

• Partners must be prepared for financial due diligence.

Governance and compliance

• Clear IP and data governance plan covering ownership, access, licensing, and commercialization.

• Defined milestones, deliverables, and reporting structure.

• Risk management, ethics, privacy, and cybersecurity considerations appropriate to AI/ML in manufacturing.

Required Documents

Prepare these documents to complete the AI4M application. Format requirements typically include clear file naming, standard document types (PDF/Word), and adherence to any portal file size limits.

Organizational and consortium documents

• Consortium overview: roles, capabilities, technology contributions, and leadership structure.

• Letters of intent or commitment from each partner confirming scope, resources, and co-investment.

• SME Declaration Form for any SME partners.

• Company profiles for all partners (including corporate structure and ownership).

• Evidence of co-investment: letters, internal approvals, or board resolutions indicating cash and in-kind contributions.

Project planning and technical documents

• Full proposal (using the AI4M proposal template): objectives, use cases, technology description, work packages, methodology, and success metrics.

• Detailed project plan: Gantt chart, milestones, deliverables, and responsibilities per partner.

• Budget and budget justification (using the AI4M budget template): by cost category and partner, with assumptions.

• Risk management plan: technical, operational, financial, regulatory, and mitigation strategies.

• IP and data governance statement: ownership, background and foreground IP, data access, sharing, privacy, and cybersecurity.

• Commercialization plan: market analysis, value proposition, adoption strategy, pricing or business model, and go-to-market timelines.

• Training and change management plan: upskilling, documentation, SOP updates, and roll-out in plants or across sites.

Financial and compliance documents

• Financial statements for each participating company (typically last two fiscal years; interim statements if recent).

• Financial due diligence questionnaire or forms as required.

• Application Agreement (draft/signature as instructed during contracting).

• Project IP tables capturing background and foreground IP contributions.

• Any required ethics statements or regulatory clearances relevant to data use.

Operational attachments (as applicable)

• Resumes/CVs of key technical and commercialization staff.

• Letters from customers, pilot sites, or manufacturing sites confirming availability and access.

• Quotes or statements of work from subcontractors or vendors.

• Evidence of data sources, data readiness, and cloud/infrastructure arrangements.

Common documentation pitfalls to avoid

• Missing partner commitments or unsigned letters.

• Incomplete budget justifications or misaligned costs per work package.

• Vague IP ownership or unclear licensing terms.

• Insufficient evidence of matching funds.

• Overly technical proposals that lack a commercialization roadmap.

Step-by-Step Application Process

Follow this step-by-step guide to apply to AI4M. Timelines reflect the current intake as of December 2, 2025.

Step 1: Confirm fit and build your consortium

• Validate that your project commercializes AI/ML for manufacturing impact and fits the $1.5M–$8M total cost range.

• Secure at least two industry partners: one manufacturer and one AI company; ensure at least one SME.

• Identify additional participants (e.g., research organizations) who add essential capabilities.

• Agree on a lead applicant and collaboration structure.

Step 2: Register as an NGen member and set up your portal account

• Ensure all partners have active NGen memberships and can access the submission portal.

• Assign an internal application lead and upload initial partner details.

• Review the Application Guide, Finance Guide, and IP Guide to align your approach.

Step 3: Prepare and submit the Expression of Interest (EOI)

• Complete the EOI form summarizing the problem statement, AI/ML solution, manufacturing impact, partners, and high-level budget.

• Highlight Canadian economic benefits and commercialization timelines.

• Submit by the EOI deadline: June 17, 2025 (5 pm EST).

• Monitor communications for feedback and next-step instructions.

Step 4: Develop the full proposal with detailed plan and budget

• Use the AI4M proposal template and budget template to structure your application.

• Provide a detailed work breakdown structure with milestones and deliverables.

• Justify each budget line with assumptions, vendor quotes, or benchmarks.

• Finalize the IP and data governance plan (background vs. foreground IP, licensing, data access/retention).

• Align your commercialization plan with customer validation, pilot commitments, and scale-up strategy.

• Obtain partner letters of commitment and SME declarations.

Step 5: Complete financial due diligence for each partner

• Compile financial statements and complete any due diligence questionnaires.

• Prepare documentation of matching funds (cash and eligible in-kind), including internal approvals.

• Ensure each partner demonstrates capacity to meet obligations throughout the project.

Step 6: Validate compliance and upload required documents

• Cross-check all required attachments against the AI4M application checklist.

• Confirm eligibility of costs and co-investment against budgeting rules.

• Respect file naming conventions and any upload size limits.

• Validate all contacts, signatures, and dates.

Step 7: Submit the full application by the final deadline

• Submit the completed application via the portal by July 17, 2025 (5 pm EST).

• Retain a record of submitted files and the portal confirmation.

• Notify partners that the file is locked for review.

Step 8: Evaluation, clarification, and selection

• During review, be prepared to answer clarification questions about scope, budget, or IP/data governance.

• Evaluation typically considers:

• Technical excellence and feasibility of the AI/ML solution

• Manufacturing relevance and measurable industry impact in Canada

• Quality of collaboration and role of SMEs

• Commercialization potential and time to adoption

• Budget realism, co-investment strength, and value for money

• Milestones, risk mitigation, compliance, and reporting readiness

• Selection decisions are communicated after the review phase.

Step 9: Contracting and project launch

• Finalize and sign the Application Agreement and any consortium/partner agreements.

• Confirm the statement of work, milestones, deliverables, and reporting schedule.

• Establish claiming procedures for reimbursement of eligible costs.

• Launch the project upon receipt of the formal approval and executed agreements.

Application Timeline

Key dates for this intake:

• Information webinar: May 8, 2025 (12 pm EST)

• Expression of Interest (EOI) deadline: June 17, 2025 (5 pm EST)

• Final Application deadline: July 17, 2025 (5 pm EST)

Sequence overview:

• Weeks 1–4: Consortium formation, EOI drafting, early data/IP planning.

• Weeks 5–8: Full proposal development, budgeting, partner commitments, due diligence.

• Submission: By July 17, 2025 (5 pm EST).

• Review and contracting: Typically several weeks after submission; contracting follows approval.

Processing times can vary based on volume and completeness of your application. Submit early to mitigate last-minute portal congestion and allow time for clarifications.

Tips for a Successful Application

Strengthen your AI4M proposal with these practical tips:

• Anchor on a manufacturing problem: Quantify baseline performance and define target KPIs (throughput, yield, downtime, scrap, OEE, energy).

• Demonstrate data readiness: Describe sources, quality, labeling, governance, security, and cloud/edge architecture.

• Show a credible commercialization path: Include customers, pilots, purchasing intent, and a go-to-market plan with timelines.

• Allocate work to the right party: Manufacturer leads operational trials; AI company leads model development/deployment; research partners address complex methods or validation.

• Build a robust budget narrative: Tie each cost to a work package; include vendor quotes or benchmarks; explain assumptions.

• Clarify IP and data rights: Map background IP, foreground IP ownership, license terms, and access for adoption and scale-up.

• Prioritize SME impact: Highlight how SMEs benefit or lead; show capability growth and market access for smaller firms.

• Plan change management: Training, SOP updates, safety, and stakeholder engagement in plants.

• De-risk the roadmap: Pilot in one line or site, then scale to additional lines or sites; include contingency.

• Prepare for compliance: Set up reporting templates, cost tracking, and document retention from day one.

Common Mistakes to Avoid

Avoid these errors that commonly weaken AI4M applications:

• Missing required partners (no AI company or no manufacturer) or no SME participation.

• Submitting an EOI or final application after the deadline.

• Vague manufacturing use case with unquantified benefits.

• Insufficient evidence of matching funds or relying on ineligible costs.

• Unclear IP ownership or absent data governance plan.

• Overly ambitious scope without pilot phases or realistic milestones.

• Budgets lacking justification, or misaligned with work packages.

• Incomplete financial due diligence or unsigned partner commitments.

• Ignoring training and operational integration in plants.

• Uploading files that exceed portal limits or using incorrect templates.

What Happens After You Apply

Review and decision

• Your EOI is screened, often with feedback guiding the full application.

• Full applications undergo technical, business, and financial review. Clarification questions may be issued.

If approved

• You receive an approval notification and proceed to contracting.

• The consortium signs the Application Agreement and any required partner/consortium agreements.

• Project setup includes confirming milestones, deliverables, reporting cadence, and claim procedures.

• Funding is typically provided on a reimbursement basis against approved and incurred eligible costs.

If not approved

• You can request high-level feedback to inform future submissions.

• Consider resubmitting in a future intake after strengthening your consortium, scope, or commercialization plan.

During the project

• Maintain records for all eligible expenses.

• Submit progress reports and claims per the agreed schedule.

• Prepare for audits or spot checks as part of standard compliance.

Conclusion

Applying to the NGen AI For Manufacturing Challenge (AI4M) requires a strong business-led consortium, a focused manufacturing use case, a clear commercialization plan, and disciplined budgeting. Start early, align with the 40% funding coverage and co-investment requirements, and meet the 2025 deadlines (EOI: June 17; Final: July 17). With rigorous preparation, your team can leverage AI4M to accelerate AI/ML adoption in Canadian manufacturing operations and bring impactful solutions to market.