Who Can Apply for the ISED Artificial Intelligence Program

The ISED Artificial Intelligence (AI) program offers Canadian businesses an opportunity to test innovative AI prototypes in real-world settings. This initiative, backed by Innovation, Science and Economic Development Canada, aims to support projects that address government needs through advanced AI solutions. This article outlines the eligibility criteria for organizations considering applying to this program.

Program Overview

The ISED AI program, sponsored by Innovation Solutions Canada, focuses on procuring and testing pre-commercial AI prototypes. It targets innovations that can benefit government operations across various departments. The program includes two components: the Standard Component with funding up to $1,100,000 CAD, and the Military Component with up to $2,300,000 CAD. Applications open on June 27, 2025, and close on July 22, 2025.

Applicant Type Requirements

To be eligible, applicants must be Canadian entities. This includes corporations, partnerships, or individuals with a permanent business presence in Canada. The program is open to both private companies and public research institutions, provided they can demonstrate a significant Canadian presence.

• Must be a Canadian Offeror with a permanent place of business in Canada.

• Legal entity types include corporations, partnerships, or individuals.

• Open to private companies and public research institutions.

Size & Scale Criteria

There are no specific size restrictions in terms of revenue or number of employees, allowing small and medium enterprises (SMEs) to apply. However, the applicant must meet the Canadian content requirements, ensuring that the majority of the project's value is derived from Canadian goods and services.

• No specific employee count or revenue thresholds.

• Must ensure 80% of the project costs involve Canadian goods or services.

Geographic Eligibility

The program is national, with eligibility extending to all provinces and territories across Canada. Applicants must demonstrate that their primary business activities and operations are conducted within Canada.

• Open to applicants across Canada.

• Must have a significant operational presence in Canada.

Project & Activity Requirements

Eligible projects must involve innovative AI prototypes at the pre-commercial stage. The innovation should not be commercially available and must align with the program’s objectives of addressing government needs. Projects that have previously received conditional qualification under other federal innovation programs are ineligible.

• Innovations must be pre-commercial and not previously sold commercially.

• Projects should align with government needs and objectives.

Financial & Operational Criteria

Applicants must demonstrate financial stability and operational readiness to execute the project within the specified timeline. They should also have the necessary intellectual property rights or exclusive licenses for the proposed innovation.

• Must show financial stability and operational readiness.

• Required to own or have exclusive licenses for intellectual property.

Ineligible Applicants

Applicants with innovations already conditionally qualified under the Build in Canada Innovation Program (BCIP) or similar initiatives are not eligible. Additionally, projects that do not meet pre-commercial criteria or are currently in commercial use are excluded.

• Innovations previously qualified under BCIP or similar programs are ineligible.

• Projects must not be commercially available.

Special Cases & Exceptions

Though the program broadly supports Canadian innovators, specific exceptions apply, particularly regarding intellectual property and previous program participation. Applicants are encouraged to assess their eligibility carefully before applying.

• Exceptions exist for specific intellectual property and previous program participation.

• Detailed assessment of eligibility is advised.

Self-Assessment Checklist

• Are you a Canadian entity with a permanent business presence?

• Does your project involve pre-commercial AI innovation?

• Is 80% of your project’s value derived from Canadian goods or services?

• Do you own or have exclusive rights to the necessary intellectual property?

Conclusion

The ISED AI program represents a significant opportunity for Canadian innovators looking to test and validate their AI prototypes. By ensuring alignment with the program’s eligibility criteria, applicants can position themselves to contribute to government innovation while advancing their technological capabilities. Prospective applicants should ensure they meet all requirements and prepare to submit their proposals by the July 22, 2025 deadline.