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Source verified July 23, 2026
FedDev — Regional Artificial Intelligence Initiative – Adoption Pillar 2 – Businesses
AI adoption support for businesses
Funding available
$ 5,000,000
Deadline
January 19, 2027
Opened October 13, 2026
Location
Ontario, Canada
Overview
This program supports businesses adopting AI or AI-driven solutions to improve efficiency, productivity, and competitiveness. Businesses can request up to $5 million for eligible AI adoption projects, including integration, process re-engineering, training, cybersecurity, and related IP work.
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Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- Increase performance through digital transformation
- Develop strategic partnerships
- Develop team skills
Eligible Funding
- Maximum amount : 5,000,000 $
- Up to 50% of project cost
Eligible candidates
Eligible Industries
- All industries
Location
- Ontario
Legal structures
- Non-profit
- Public or Parapublic institution
- For-profit business
Annual revenue
- All revenue ranges
Organisation size
- 5-500 employees
Audience
- All groups
Non-profit candidates
Sector of operation
- Research
- Hospitals and Rehabilitation
- Other Health Services
- Economic, Social and Community Development
- Employment and Training
- Business Associations
- Professional Associations
- Diversity and Inclusion
Target groups
- Indigenous peoples
- Business owners / entrepreneurs
- Nonprofits / charities
- Academia / students
Revenue structures
- All structures
Scope
- Regional
- National
Next Steps
1
Determine your project
Availability timeline
2026
Periods: 2
Activities funded
- Adoption or integration of AI or AI-driven solutions into business operations
- Strategic AI integration and process re-engineering
- Upgrading digital infrastructure and equipment for AI adoption
- Training and capacity building for AI use
- Cybersecurity and responsible AI implementation
Documents Needed
- Application for Funding
- Supplemental Form
- Mandatory attachments
- Company incorporation documents
- Financial statements
Official resources
Eligibility
Who is eligible?
- Businesses incorporated and registered in Canada or Ontario
- Small and medium-sized enterprises
- Not-for-profit organizations
Eligible expenses
- Purchase and installation of AI-related software, equipment, and infrastructure
- Incremental labour, expertise, and project management costs
- Training, talent development, and materials for project delivery
- Cybersecurity measures and IP-related project costs
- Marketing and outreach related to project activities
Ineligible Costs and Activities
- Land and building acquisition
- Motor vehicle costs
- Refinancing of existing debts
- Non-incremental costs and costs not directly tied to the project
- Operating costs and inventory costs
Eligible geographic areas
- Southern Ontario
Selection criteria
- Degree of transformative AI adoption
- Incremental nature of the project
- Quality of project plan, budget, and capacity to deliver
- Alignment with pillar priorities
- Expected results and risk mitigation, especially for responsible AI
How to apply
- Step 1: Review program details
- Confirm the project fits the AI adoption pillar.
- Check eligibility and required documents.
- Step 2: Prepare the application
- Complete the Application for Funding and the Supplemental Form.
- Gather mandatory attachments and supporting information.
- Step 3: Submit the application
- Submit all required materials by December 20, 2024.
- Indigenous applicants may apply directly by email.
- Step 4: Await review
- FedDev Ontario reviews the application and may request clarification.
- If approved, confirm matching funding and proceed to agreement.
Processing and Agreement
- Applications are reviewed after submission and must be complete
- Eligible projects are assessed against program criteria and priorities
- FedDev Ontario may contact applicants with questions
- Funding decisions depend on available funding and final approval
- If approved, the applicant must confirm matching funds and sign an agreement
Additional information
- Applications are accepted until December 20, 2024 at 4:59 pm EST.
- Indigenous applicants may apply directly by email.
- An application is not a commitment of funding.
- Approved recipients may have reporting and visibility obligations.
Contacts
Frequently Asked Questions about the FedDev — Regional Artificial Intelligence Initiative – Adoption Pillar 2 – Businesses Program
What is the FedDev — Regional Artificial Intelligence Initiative – Adoption Pillar 2 – Businesses?
This program supports businesses adopting AI or AI-driven solutions to improve efficiency, productivity, and competitiveness. Businesses can request up to $5 million for eligible AI adoption projects, including integration, process re-engineering, training, cybersecurity, and related IP work.
How much funding can be received?
FedDev — Regional Artificial Intelligence Initiative – Adoption Pillar 2 – Businesses Funds up to 50% of admissible expenses, capped at $5,000,000 per project.
What is the deadline to apply?
The application deadline for this grant program is January 19, 2027. Applicants must submit their complete application before this date to be considered for funding.
Who is eligible for the FedDev — Regional Artificial Intelligence Initiative – Adoption Pillar 2 – Businesses program?
To be eligible for the FedDev — Regional Artificial Intelligence Initiative – Adoption Pillar 2 – Businesses program, you must:
Incorporated business in Canada or Ontario
5 to 500 FTEs
At least 3 years of operations
What expenses are eligible under FedDev — Regional Artificial Intelligence Initiative – Adoption Pillar 2 – Businesses?
Adoption or integration of AI or AI-driven solutions into business operations
Strategic AI integration and process re-engineering
Upgrading digital infrastructure and equipment for AI adoption
Training and capacity building for AI use
Cybersecurity and responsible AI implementation
Who can I contact for more information about the FedDev — Regional Artificial Intelligence Initiative – Adoption Pillar 2 – Businesses?
You can contact Federal Economic Development Agency for Southern Ontario (FedDev) by email at info@feddevontario.gc.ca or by phone at 1-866-593-5505.
Where is the FedDev — Regional Artificial Intelligence Initiative – Adoption Pillar 2 – Businesses available?
The FedDev — Regional Artificial Intelligence Initiative – Adoption Pillar 2 – Businesses program is available the province of Ontario.