What Can ISED AI Fund: Eligible Expenses and Project Scope
The ISED — Artificial Intelligence (AI) program, administered by Innovation, Science and Economic Development Canada, offers a unique opportunity for Canadian organizations to test innovative AI prototypes tailored to meet government needs. This article explores what expenses and activities are eligible for funding under this program, providing essential insights for organizations planning to leverage this financial support.
Program Funding Overview
The ISED AI program supports the development and testing of late-stage pre-commercial AI prototypes. The funding is structured as a contract, with two main components: the Standard Component, which provides up to $1,100,000 CAD, and the Military Component, offering up to $2,300,000 CAD. This funding is intended to help address various priorities within the Government of Canada, focusing on enhancing operational technology through AI-driven solutions.
Funding Amounts & Rates
The program's funding amounts vary based on the component applicable to the project:
Standard Component: Up to $1,100,000 CAD
Military Component: Up to $2,300,000 CAD
The funding is provided as a contract rather than a grant or subsidy, meaning recipients are expected to deliver the specified outcomes in the contract.
Eligible Expenses
Eligible expenses under the ISED AI program include:
Development Costs: Costs related to the creation and refinement of AI prototypes, including software development and testing.
Personnel Costs: Salaries for staff directly involved in the project, including researchers and developers.
Equipment Costs: Purchase or rental of equipment necessary for testing prototypes, such as computing hardware or specialized sensors.
Materials and Supplies: Consumables needed for prototype development and testing.
Consulting Services: Fees for external experts needed to support project development or testing phases.
Travel Costs: Necessary travel for project-related activities, limited to essential trips for testing and evaluation purposes.
The program specifically supports projects that align with government priorities, such as enhancing decision-making processes and automating routine tasks.
Ineligible Expenses
The ISED AI program does not cover:
General Overhead Costs: Indirect costs like administrative fees not directly tied to the project.
Marketing Expenses: Costs associated with promoting the prototype.
Expenditures Prior to Contract: Any expenses incurred before the contract start date.
Unsecured Data Solutions: Projects lacking proper data security measures.
Expense Documentation Requirements
Applicants must maintain detailed records of all expenses, including:
Invoices and Receipts: Proof of purchase for equipment and materials.
Payroll Records: Documentation of salaries and wages paid to project personnel.
Contracts: Agreements with consultants or external experts.
Proper documentation is crucial for compliance and audit purposes.
Examples of Funded Projects
Successful projects might include:
Robotic Process Automation (RPA): Implementing RPA solutions to streamline administrative workflows in government departments.
AI-driven Predictive Maintenance: Using AI to predict and prevent equipment failures within government infrastructure.
Healthcare Decision Support: AI applications that assist in monitoring patient health and optimizing treatment plans.
These examples illustrate the diverse applications of AI under this program.
Funding Disbursement & Claiming Process
Funding is disbursed upon meeting specified milestones within the contract. Claims require:
Milestone Reports: Evidence of progress and completion of key project phases.
Financial Statements: Detailed accounts of how funds were utilized.
Timely submission of reports ensures smooth disbursement of funds.
Stacking Rules
The ISED AI program can be combined with other funding sources, provided that:
Total Funding Does Not Exceed Project Costs: Ensure that combined funding does not surpass total eligible project expenses.
Compliance with Other Programs: Adhere to specific rules of other funding programs when stacking.
Real-World Budgeting Tips
To maximize funding efficiency:
Prioritize Eligible Costs: Focus on core project expenses to ensure full coverage by the program.
Plan for Ineligible Costs: Allocate separate funding for non-covered items to prevent budget shortfalls.
Regularly Review Budget: Adjust allocations as project progresses to align with funding criteria.
Conclusion
Understanding what the ISED AI program can fund is essential for planning and executing your AI innovation projects effectively. By aligning your project with eligible expenses and maintaining thorough documentation, you can leverage this funding to advance AI solutions that meet Canadian government needs.
