Who Can Apply to the NGen AI For Manufacturing Challenge (AI4M)

The NGen AI For Manufacturing Challenge (AI4M) funds collaborative, business-led projects that commercialize artificial intelligence and machine learning in Canadian manufacturing. As part of the Pan‑Canadian AI Strategy, this national program aims to accelerate advanced manufacturing capability through industry partnerships.

According to the official challenge parameters, projects must focus on AI/ML commercialization in manufacturing, include at least two industry partners (one manufacturing company and one AI company), and involve at least one Small or Medium‑sized Enterprise (SME). Total project costs should fall between $1.5M and $8M, with eligible costs reimbursed at up to 40%. As of December 3, 2025, the published intake milestones for this AI manufacturing funding include an Expression of Interest and a final application deadline in mid‑2025.

This eligibility guide explains who can apply to AI4M, how consortia should be structured, and the criteria organizations must meet to qualify. It also outlines ineligible cases, special scenarios, and a practical self‑assessment checklist.

Program Overview

The AI4M Challenge is administered by Next Generation Manufacturing Canada (NGen), the Global Innovation Cluster for Advanced Manufacturing. The program supports collaborative AI manufacturing projects that create measurable benefits for Canada’s manufacturing ecosystem.

Key program highlights:

• Funding model: non‑repayable contribution with a cost‑share structure (up to 40% of eligible costs reimbursed).

• Project size: total eligible project costs between $1.5M and $8M.

• Collaboration requirement: minimum two industry partners, comprising at least one manufacturing company and one AI company.

• SME requirement: at least one participating company must be an SME.

• Focus: commercialization of AI/ML solutions that improve manufacturing capability, productivity, quality, or supply chain performance across Canada.

Why eligibility matters: AI4M is competitive and time‑bound. Ensuring your organization and consortium meet the core criteria before drafting your proposal helps reduce rework, clarifies partner roles, and strengthens your chance of success.

Applicant Type Requirements

AI4M is a business‑led, collaborative program. The following applicant and partner types are commonly eligible or involved:

• Manufacturing companies operating in Canada that will adopt, integrate, or commercialize AI/ML in their operations or products.

• AI companies (software, platforms, applied AI/ML solution providers) with technology and implementation expertise relevant to manufacturing use cases.

• SMEs and large companies; at least one company in the consortium must be an SME.

• Research organizations and publicly funded academic institutions that can contribute specific expertise, testing environments, or technology validation.

• Other technical organizations and solution providers outside the manufacturing sector that bring essential capabilities to an AI4M project.

Consortium leadership:

• Projects must be business‑led. In practice, the lead applicant is typically an industry partner (manufacturer or AI firm) responsible for contracting, reporting, and governance.

• Research organizations can participate but are not positioned as the sole lead for business‑led commercialization.

Supportive roles:

• Industry associations, cluster organizations, or non‑profits may participate where they provide specialized services such as testbeds, training, standards, or ecosystem enablement aligned to the project.

Size & Scale Criteria

AI4M includes a specific SME requirement and a project scale range:

• SME requirement: At least one company partner must be an SME. In Canadian funding contexts, an SME typically means fewer than 500 employees and under $50M in annual revenues; confirm any program‑specific definition used in AI4M guidance.

• Project size: Total eligible project costs must be between $1.5M and $8M.

• Cost share: Up to 40% of eligible costs may be reimbursed; applicants must secure the remaining at least 60% from non‑NGen sources (cash and/or in‑kind, as permitted by program rules).

Scale readiness:

• Partners should demonstrate sufficient operational capacity to deliver milestones at this scale, including qualified staff, appropriate facilities, and supply chain readiness.

• The lead should be able to coordinate multi‑partner governance and manage risk across work packages.

Geographic Eligibility

AI4M is a national program intended to build advanced manufacturing capacity in Canada:

• Canadian operations: Participating companies should be registered in Canada and carry out project activities that benefit Canada’s manufacturing sector.

• Pan‑Canadian reach: Projects may involve partners from multiple provinces and territories, including Ontario, Quebec, British Columbia, Alberta, Manitoba, Saskatchewan, Nova Scotia, New Brunswick, Newfoundland and Labrador, and Prince Edward Island.

• Multi‑site projects: Engagement across multiple manufacturing sites (for example, GTA, Montreal region, Lower Mainland, Waterloo Region, Calgary, Ottawa, Halifax, Winnipeg, Edmonton) is encouraged when it strengthens impact and technology adoption.

Foreign participation:

• International organizations may contribute as vendors or collaborators if they bring unique expertise; however, Canadian benefit and the Canadian partner roles must be central. Funding for foreign costs is typically restricted; verify allowable allocations.

Project & Activity Requirements

AI4M funds the commercialization of AI/ML solutions for advanced manufacturing. Projects should demonstrate:

• Clear manufacturing impact: Examples include systems optimization on the factory floor, quality control, predictive maintenance, robotics, automation equipment, or supply chain optimization.

• Commercialization path: A defined route to market and adoption in Canada’s manufacturing sector, not solely exploratory R&D.

• Collaborative execution: At least two industry partners—one manufacturer and one AI company—working with defined roles, commitments, and integrated work plans.

• SME participation: At least one SME with material responsibilities and benefits.

• Budget alignment: Total project costs between $1.5M and $8M, with eligible costs reimbursed up to 40%.

• Examples of eligible activities often include:

• Deployment and integration of AI/ML into manufacturing systems and equipment.

• Rapid prototyping and testing of products, processes, or materials.

• Development of new advanced manufacturing solutions (e.g., autonomous vehicles, robotics, automation equipment).

• Scale‑up, pilot, or demonstration activities leading to adoption.

Timeline and intakes (as of December 3, 2025):

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

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

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

Financial & Operational Criteria

AI4M includes due diligence and co‑investment requirements:

• Financial due diligence: NGen conducts a financial assessment for each project partner to confirm they can meet their obligations for the project duration.

• Co‑investment: Applicants must provide at least 60% of total eligible project costs from non‑NGen sources. Contributions can include cash and, where permitted, in‑kind resources aligned with program guidance.

• Reimbursement model: Funding is typically reimbursed against eligible expenses. Partners should be prepared to cash‑flow activities and maintain strong financial controls.

• Budget discipline: Follow the program’s budgeting eligibility guidance for cost categories, documentation standards, and any limits on indirect costs or specific expense types.

• Governance and reporting: Expect defined milestones, deliverables, and reporting requirements consistent with NGen’s project management standards.

Operational readiness:

• Demonstrate qualified project leadership, technical staff, and vendor management.

• Present a credible risk management plan, including data, IP, cybersecurity, and safety considerations relevant to manufacturing environments.

• Ensure compliance with IP and data governance guidance so partners’ rights and commercialization incentives are balanced.

Ineligible Applicants

The following situations commonly fall outside AI4M eligibility or competitiveness:

• Single‑applicant proposals without collaboration between at least one manufacturer and one AI company.

• Consortia with no SME participation.

• Projects with total costs below $1.5M or above $8M.

• Initiatives not centered on manufacturing or without a clear commercialization pathway in Canada.

• Purely academic research without business‑led commercialization objectives.

• Proposals focused primarily outside Canada or without demonstrable Canadian benefit.

• Partners unable to pass financial due diligence or to meet co‑investment and cash‑flow requirements.

• Projects that duplicate existing solutions without clear innovation or measurable manufacturing outcomes.

Special Cases & Exceptions

Consider the following scenarios:

• Research organizations: Eligible to participate as partners for applied research, testing, and validation; however, the project must remain business‑led.

• Non‑profits and industry associations: May join when their role advances training, standards, testbeds, or adoption; funding eligibility depends on program rules and cost categories.

• Startups: AI startups and manufacturing startups may participate if they meet financial due diligence and capacity requirements; partnering with established manufacturers can improve feasibility.

• Foreign entities: May contribute expertise or supply components; funding for foreign costs is limited and Canadian impact must be primary.

• Multi‑province projects: Encouraged when they create scalable deployment and broader ecosystem benefits.

Any exceptions or edge cases should be reviewed against the current AI4M Application Guide, Financial Guide, and IP Guide.

Self‑Assessment Checklist

Use this quick eligibility checker before you invest time in a full proposal:

• Our consortium includes at least two industry partners: one manufacturing company and one AI company.

• At least one consortium company is an SME.

• We are Canadian‑registered and will conduct core project activities in Canada with clear Canadian benefits.

• Our project total eligible costs are between $1.5M and $8M.

• We can provide at least 60% in matching funds (cash and/or in‑kind as permitted).

• We can carry costs until reimbursement and pass financial due diligence.

• Our project commercializes AI/ML for manufacturing, not just exploratory research.

• We have a clear path to adoption, with pilots, demos, or multi‑site deployments in scope.

• We can meet intake timelines and prepare required documents (application form, budget, letters, IP tables, SME declaration, partner commitments).

• We have governance, data/IP management, and risk mitigation plans suitable for an industrial environment.

If you checked “yes” for all items, your organization likely aligns with core AI4M eligibility and should proceed to prepare an Expression of Interest and full application.

Conclusion

AI4M targets collaborative AI manufacturing projects that deliver measurable, near‑term commercialization outcomes in Canada. To qualify, assemble a business‑led consortium with at least one manufacturer, one AI company, and at least one SME; position activities within the $1.5M–$8M project range; and plan to match at least 60% of eligible costs. Strong financial capacity, sound governance, and a credible path to adoption will reinforce eligibility and competitiveness.

As intake dates are fixed and the program is competitive, start partner alignment and documentation early. Review the AI4M eligibility criteria, consortium requirements, and financial guidance to confirm fit, then progress to your EOI and full proposal.