How much funding can be received?

Funds up to 40% of admissible expenses, capped at $3200000 per project.

What is the deadline to apply?

The deadline to apply is not specified.

Who are the financial supporters of the NGen — AI For Manufacturing Challenge (AI4M)?

NGen — AI For Manufacturing Challenge (AI4M) is funded by Next Generation Manufacturing Canada (NGen)

What are NGen — AI For Manufacturing Challenge (AI4M)'s eligibility criterias?

The applicant must be a for-profit organization registered and operating in Canada. At least one SME (less than 500 employees) must be included as a project partner. The company must have a value-added presence in Canada beyond a sales office.

NGen — AI For Manufacturing Challenge (AI4M)

grant_single|update April 27, 2025

Canada

Funding for collaborative AI-driven advanced manufacturing projects in Canada

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Partnering and Collaboration

Grant and Funding

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Manufacturing

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Next Generation Manufacturing Canada (NGen)

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The NGen — AI For Manufacturing Challenge provides up to $13 million in funding to support the integration and commercialization of artificial intelligence and machine learning innovations within Canadian advanced manufacturing sectors. Eligible activities include the development and commercialization of AI-enabled manufacturing technologies, systems optimization, new manufacturing solutions, and rapid prototyping and testing.

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Funding covers up to 40% of total eligible project costs.
Total project costs must be between $1.5 million and $8 million; NGen funding support is capped at $3.2 million per project.
Capital expenditures may represent up to 45% of the total project costs.
Sub-contracted or consulting costs must not exceed 40% of total project costs.
No individual partner may receive more than 80% of the NGen funding awarded.

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Commercialization of artificial intelligence and machine learning solutions within the manufacturing sector.
Development and implementation of AI-enabled advanced manufacturing technologies, such as autonomous vehicles, robotics, and automation equipment.
Optimization of manufacturing systems or supply chains through AI-based approaches.
Rapid prototyping and testing of new materials, products, and manufacturing processes enabled by AI.

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The applicant must be a member of NGen (Next Generation Manufacturing Canada).
The applicant organization must be registered and have a value-added presence in Canada, beyond a sales office.
Eligible applicants include for-profit organizations, not-for-profit organizations (primarily funded by private sector/industry), non-federal Crown corporations (funded by commercial activities), and Indigenous organizations.
The project must be business-led, collaborative, and focused on the commercialization or application of AI solutions in manufacturing, with the participation of at least one manufacturing company, one AI company, and at least one small or medium-sized enterprise (SME, defined as less than 500 employees globally).
Applicants must demonstrate the capacity to fund, manage, and execute the project, and must participate in financial due diligence to confirm their ability to meet project commitments.

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For-profit organizations in Canada engaged in advanced manufacturing
Not-for-profit organizations that facilitate and fund research and development for the manufacturing ecosystem, primarily funded by the private sector
Non-federal Crown corporations funded through commercial activities
Indigenous organizations involved in manufacturing or technology

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Other publicly funded not-for-profit organizations that do not primarily receive funding from private-sector or industry organizations.
Post-secondary institutions (e.g., universities and colleges).
Federal Crown corporations.
Government departments or agencies.
International organizations, including offshore companies and research organizations without a registered business presence in Canada.

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Salaries and wages for personnel in Canada directly involved in the project, including certain employer-paid benefits as required by law.
Overtime premiums proportionally related to project work.
Subcontracting and consultancy fees for essential work provided by external experts, performed in Canada and not exceeding 40% of total project costs.
Purchase, rental, operation, and maintenance of new equipment directly linked to project objectives, up to 45% of total project costs.
Materials and supplies consumed by the project, purchased and used during the project timeline.
Direct costs for the use of existing equipment (such as labour, materials, or separately metered utility costs specifically for project activities).
Reasonable travel expenses incurred exclusively for advancing the project, in line with government guidelines.
Service fees and software subscription or license fees directly related to project activities.
Additional costs of rented factory or lab space for the project, for contracts started after the project commencement date.
Cost of renting facilities for project-related conferences and associated telecommunication costs.
Publication costs for project results (excluding costs related to production, selling, or marketing).
Reasonable costs for patent protection of foreground IP developed in the project (for SMEs only, up to specified limits), and potentially for background IP if directly related to the project.

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Businesses registered in Canada with a value-added presence in Canada (beyond a sales office).

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Assessment of ten specific application questions, each scored equally (10 marks per question, total of 100 marks).
Projects must be in scope for the funding challenge (gateway question—yes/no).
Overall recommendation from independent assessors for funding (gateway question—yes/no).
Evaluation process conducted by up to five external, independent experts.
Feedback is provided to all applicants after assessment, outlining reasons for approval or rejection and recommendations for strengthening the application.

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Step 1: Become an NGen MemberRegister for free membership with NGen at www.ngen.ca/join to access the application portal and participate in funding programs.
Step 2: Project Registration and ScreeningAccess the NGen Grant Management Portal as a member.
Register your project on the portal as early as possible to initiate the screening process.
Submit a screening application providing a summary of the project intent, identified partners, and high-level financials.
Meet the Project Screening Deadline (June 17, 2025, 5:00 pm EST); failure to meet this deadline results in disqualification.
Step 3: Prepare Full ApplicationFollowing a successful screening, complete your detailed application in the NGen portal.
Prepare responses to ten application questions (maximum 7,000 characters per question), as outlined in the guidance.
Compile the required appendices:Appendix 1: Project Management Plan (Gantt chart, work packages, tasks, timelines, milestones, deliverables, dependencies, resource allocation, costs).
Appendix 2: Risk Register.
Appendix 3: Intellectual Property Tables.
Download and complete the Application Agreement template.
Ensure all required templates (including SME Declaration Form, if applicable) are filled out and ready for upload.
Step 4: Financial Due DiligenceProvide financial documentation for each participating partner, as outlined in the Financial Guide (e.g., cashflow forecasts, financial statements, business information).
NGen will assess the financial capacity of all partners to support project commitments throughout the project duration.
Step 5: Submit Final ApplicationUpload all completed documents and appendices to the NGen portal.
Submit your final application by the Final Application Deadline (July 17, 2025, 5:00 pm EST).
Step 6: Application Assessment and FeedbackApplications are reviewed by independent external experts based on set criteria.
Applicants will receive notifications of results and feedback after assessment.
Step 7: Contracting PhaseFor successful applications, complete the contracting process (Master Project Agreement and Consortium Collaboration Agreement).
Review draft agreements available on the NGen website to prepare for this phase.
Step 8: Project LaunchOfficially launch the project within approximately two months of approval (expected by September 30, 2025).
Step 9: Post-Award Claims and ReportingSubmit claims for reimbursement through the NGen portal every three months.
Provide supporting documentation for all eligible expenditures.
Meet ongoing project reporting and monitoring obligations as set out in the Master Project Agreement.

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Project administration fees of 5% of the total project cost, paid in two installments, are a mandatory, non-refundable condition for funding.
Projects must be completed, and all expense claims submitted by January 31, 2027.
NGen applies a 15% holdback on funding until all project claims and reporting requirements are fulfilled.
All progress claims must be supported with relevant documentation and will be reimbursed on a quarterly basis.