How much funding can be received?

Funds up to 50% of admissible expenses, capped at $5000000 per project.

What is the deadline to apply?

The program is accepting continuous intake

FedDev — Regional Artificial Intelligence Initiative – Adoption Pillar 2 – Businesses

Q: What are FedDev — Regional Artificial Intelligence Initiative – Adoption Pillar 2 – Businesses's eligibility criterias?

Be incorporated and registered to do business in Canada or Ontario. Have between 5 and 500 full-time equivalent employees. Have a minimum of 3 years of business operations as demonstrated by financial statements.

Last Update: July 22, 2025

ON, Canada

Unlock your company's potential with cutting-edge AI advancements

FedDev — Regional Artificial Intelligence Initiative – Adoption Pillar 2 – Businesses at a glance

Eligible Funding

Max. $5,000,000
Up to 50% of project cost

Timeline

Open Date : October 22, 2024
Closing date : December 20, 2024

Financing Type

Grant and Funding

Eligible Industries

Manufacturing
Transportation and warehousing
Finance and insurance
Health care and social assistance

Grant Providers

Federal Economic Development Agency for Southern Ontario (FedDev)

Program status

Closed

Overview of the FedDev — Regional Artificial Intelligence Initiative – Adoption Pillar 2 – Businesses program

The Regional Artificial Intelligence Initiative (RAII) offers up to a maximum of $5 million in funding to help businesses and organizations in southern Ontario adopt or integrate AI solutions. The program aims to bring new AI technologies to market and enhance competitiveness by improving operational efficiency and creating productivity gains. Eligible activities include acquiring and integrating AI solutions, upgrading digital infrastructure, and strengthening cybersecurity measures, among others.

Financing terms and conditions

This funding supports projects focused on adopting AI technologies to enhance efficiency and competitiveness, primarily through repayable contributions. The program imposes specific conditions to ensure the responsible use and development of AI.

Businesses can request up to a maximum of $5 million, with funding normally being fully repayable and interest-free.
Repayment typically commences one year after the project completion.
FedDev Ontario covers up to 50% of eligible project costs, requiring the applicant to match at least 50% of the funding.
Public financial assistance, including this funding, cannot exceed 50% of eligible capital costs and 75% of eligible non-capital costs, except for projects led by Indigenous applicants, where it can cover up to 100% of eligible costs.
Funding allocations are subject to the availability of funds, and priority may be given to projects demonstrating transformative AI adoption and strategic integration.
Matching funds must be confirmed within 30 days if the project is approved, substantiated by bank statements, term sheets, or other forms of conditional funding.
The funding recipient should anticipate potential tax implications and seek advice from a qualified tax professional.

Eligible projects & activities

This grant supports the adoption and integration of innovative Artificial Intelligence (AI) solutions aimed at improving efficiency and enhancing competitiveness across various business sectors. It encourages projects that go beyond off-the-shelf AI purchases and emphasizes transformative AI use cases.

Acquiring and integrating AI solutions tailored for specific operational improvements.
Facilitating process re-engineering and digital transformation through AI integration.
Upgrading existing equipment and digital infrastructure to accommodate new AI capabilities.
Accessing specialized AI expertise to support project implementation.
Building organizational capacity through training and development in AI.
Strengthening cybersecurity measures to protect AI systems and data.
Developing governance frameworks to ensure responsible AI use and compliance with ethical guidelines.

Examples of admissible projects:

$ 35,000

Create a new digital platform for local artisans in Vancouver, BC to sell uniquely crafted goods online.

$ 30,000

Launch a community farming initiative in Halifax, NS to promote sustainable urban agriculture and food security.

$ 70,000

Establish a mobile health clinic in Calgary, AB to improve healthcare access for underprivileged communities.

$ 60,000

Implement a renewable energy installation on community housing projects in Montreal, QC.

$ 40,000

Develop an innovative waste management system for restaurants in Toronto, ON to reduce food waste.

Eligibility criteria of the FedDev — Regional Artificial Intelligence Initiative – Adoption Pillar 2 – Businesses program

The eligibility for this grant is determined by specific requirements related to the applicant's business profile and operations.

The business must be incorporated and registered to do business in Canada or Ontario.
The business must have at least 5 full-time equivalent employees (FTEs) and no more than 500 FTEs.
The business must have at least 3 years of business operations, as demonstrated by their financial statements.
The business must demonstrate that they will secure rights to intellectual property (IP) required for the project.
Where applicable, the business must not infringe on any IP rights, and demonstrate that they will own any IP created or developed in carrying out the project.
The business must demonstrate a commitment to the responsible development and use of AI, including compliance with legislative requirements and industry standards.

Who is eligible?

Businesses incorporated and registered to do business in Canada or Ontario are eligible to apply, provided they meet the following criteria:1. Size of Business: Must have between 5 and 500 full-time equivalent employees.2. Operational History: Must have been in operation for at least three years, as evidenced by financial statements.3. Intellectual Property (IP) Rights: Must be able to secure or own the IP necessary for the project, and must ensure no infringement on existing IP rights. They should also commit to creating and using AI responsibly.4. Compliance: Must comply with current and anticipated legislative requirements and industry standards, particularly regarding responsible AI development and use.5. Sector Focus: While projects can be from any sector, priority may be given to transformative applications in healthcare and life sciences, enterprise solutions, manufacturing, and mobility under the AI adoption pillar.

Who is not eligible

This grant excludes certain companies and industries due to their status or main activity. The restrictions are in place to ensure alignment with the objectives of supporting AI adoption in strategic sectors.

Companies not incorporated and not registered to do business in Canada or Ontario.
Businesses with fewer than 5 full-time equivalent employees (FTEs) or more than 500 FTEs.
Businesses with less than 3 years of operational history.
Applicants unable to demonstrate control over intellectual property rights required for the project.

Eligible expenses

This grant supports projects focused on the adoption or integration of AI technologies to enhance productivity and competitiveness. The eligible activities aim to enable businesses to strategically apply AI solutions within their operations.

Acquiring and integrating advanced AI solutions beyond commercially available tools.
Enhancing governance frameworks and adopting best practices for AI management.
Upgrading equipment and improving digital infrastructure to support AI integration.
Re-engineering business processes to optimize AI's potential impact.
Accessing specialized AI expertise for professional guidance and implementation support.
Building organizational capacity and providing targeted training for effective AI use.
Strengthening cybersecurity measures to ensure secure AI adoption.
Establishing guidelines and frameworks to ensure responsible AI use in operations.

Eligible geographic areas

This grant is specifically available to businesses operating within southern Ontario. Companies eligible for this funding must be incorporated and registered to do business in this region, as outlined by the specifications of the Regional Artificial Intelligence Initiative.

Companies incorporated and operating in southern Ontario.

Eligibility criteria of the FedDev — Regional Artificial Intelligence Initiative – Adoption Pillar 2 – Businesses program

The evaluation and selection of projects for this grant are based on specific criteria to ensure alignment with the RAII Adoption pillar objectives and the program's overall goals.

Degree to which the project focuses on the adoption or integration of transformative AI.
Incrementality of the project, supporting new or expanded initiatives for the company or organization.
Quality of the project plan, including contributions of project partners and capacity to undertake the project (managerial, technical, and operational)
Financial capacity and ability to repay, if applicable to businesses.
Alignment with pillar priorities such as healthcare, enterprise solutions, manufacturing, and mobility.
Degree to which the project addresses a critical business or industry challenge and the scope of benefits.
Expected results of the project, including process efficiency, productivity, and competitiveness improvements.
Degree of risk and mitigation measures, particularly concerning responsible AI development and compliance.
Compliance with applicable legislation and regulatory requirements.

How to apply to the FedDev — Regional Artificial Intelligence Initiative – Adoption Pillar 2 – Businesses program

Evaluate Eligibility

Ensure your business meets all eligibility criteria such as being incorporated and registered to do business in Canada or Ontario.
Verify your enterprise has between 5 and 500 full-time equivalent employees and at least 3 years of business operations.

Attend Information Session

Attend a virtual information session provided by FedDev Ontario to understand the application process and gain insights into the RAII program.

Application Preparation

Review the Application Guide for businesses, ensuring a comprehensive understanding of the application requirements and criteria.
Draft a detailed project proposal focusing on AI adoption and integration aligned with program priorities.
Gather all necessary documentation, including financial statements, project plans, and evidence of intellectual property rights.
Prepare the Supplemental Form required for the RAII initiative.

Complete Application Form

Fill in the application form on the FedDev Ontario portal, ensuring all required fields are accurately completed.
Attach supporting documents such as business registration, project plans, and financial statements.

Submission

Submit the completed application form and all attachments via the FedDev Ontario online portal before the deadline of December 20, 2024.
Indigenous applicants can submit applications directly by contacting indigenous-autochtones@feddevontario.gc.ca.

Confirmation of Submission

Receive an automated confirmation of your submission from FedDev Ontario.
Retain a copy of the confirmation and submitted materials for your records.

Follow-up

Prepare to respond to potential follow-up inquiries or requests for additional information from FedDev Ontario regarding your application.

Additional information

Additional guidance for applicants is provided to enhance the clarity and effectiveness of their application process under the RAII. Important notes and definitions are included to ensure compliance and understanding of eligibility and project requirements.

Funding assistance may have tax implications; businesses are advised to consult a qualified tax professional.
The application guide includes important notes on calculating full-time equivalent employees and provides detailed definitions of key project indicators.
A voluntary self-declaration for diversity, equity, and inclusion is included, touching on the Government of Canada's commitment to these values.
Clarifications on eligible project costs stipulated to ensure expenses directly align with project activities and outcomes.

Contact Federal Economic Development Agency for Southern Ontario (FedDev)

info@feddevontario.gc.ca

1-866-593-5505

Apply to this program

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