NGen — AI For Manufacturing Challenge (AI4M) - Canada

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Source verified July 30, 2026

NGen — AI For Manufacturing Challenge (AI4M)

Supports collaborative AI commercialization in Canadian manufacturing

Offered by

Next Generation Manufacturing Canada (NGen)

Official source: ngen.ca

Funding available

$ 3,200,000

Deadline

July 17, 2025

Opened June 17, 2025

Location

Canada

Who can apply

Any NGen member company may apply for project funding or to be considered as a partner or co-investor.

See full eligibility

Overview

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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At a glance

Funding available

Financing goals

Increase performance through digital transformation
Develop a new product or service
Conduct research and development activities

Eligible Funding

Maximum amount : 3,200,000 $
Up to 40% of project cost

Funds Providers

Next Generation Manufacturing Canada (NGen)

Eligible candidates

Eligible Industries

All industries

Location

Canada

Legal structures

Non-profit
Public or Parapublic institution
For-profit business

Annual revenue

All revenue ranges

Organisation size

499 employees maximum

Audience

Canadians
Startups

Non-profit candidates

Sector of operation

Research

Target groups

Indigenous peoples
Business owners / entrepreneurs
Nonprofits / charities
Academia / students

Revenue structures

All structures

Scope

National

Next Steps

Determine your project

Validate your eligibility

Activities funded

Commercialization of AI solutions in advanced manufacturing.
Systems optimization within manufacturing facilities or across supply chains.
Development of new advanced manufacturing solutions, including autonomous vehicles, robotics, and automation equipment.
Rapid prototyping and testing of materials, products, and processes.
Introduction, development, and scale-up of AI solutions and related implementation activities required by manufacturers.

Documents Needed

Signed Application Agreement template
Answers to all ten application questions
Appendix 1: Project Management Plan, Appendix 2: Risk Register, and Appendix 3: Intellectual Property Tables
Cashflow forecast and/or a description of how the project and the business will be funded
Copy of last 2 years financial statements, or a link to where this is available, and other Registered Business Information including a credit check

Official resources

Official page

AI For Manufacturing Challenge

Program guide

AI For Manufacturing Challenge (2024)

AI4M Project Financial Guide

Application form

Application process

Dislcaimer

Province, Territory of incorporation);

SME Declaration Form

Supporting document

Agenda - Ordre du Jour

How to Build a Successful Project Finance Plan

NGen Project # - IP Tables Title: Partners: Date

NGen Project Funding

Eligibility

Who is eligible?

Any NGen member company may apply for project funding or to be considered as a partner or co-investor.
For-profit organizations.
Not-for-profit organizations that facilitate and fund research and development on behalf of the ecosystem and whose funding and/or revenue is received primarily from private-sector or industry organizations.
Non-federal Crown corporations whose funding is from commercial activities.
Indigenous organizations.

Who is not eligible

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.

Eligible expenses

Salaries and wages for personnel based in Canada working directly on the project, including eligible statutory benefits and proportionate project-related overtime.
Sub-contract and consultancy fees for essential work not available among the partners, performed in Canada at fair market value.
New equipment purchase, rental, direct operation, and maintenance costs; direct operating costs of existing equipment; and materials and supplies consumed by the project.
Travel costs, service fees, software subscriptions or licence fees, rented factory or lab space, and conference facility or telecommunication costs directly linked to project activities.
Publication costs for project results and eligible patent protection costs for foreground IP, plus certain background IP costs, with IP reimbursement limited to SMEs and capped at $200,000 per SME.

Ineligible Costs and Activities

Routine administration and operating costs, overhead, rent on existing facilities, and labour related to production, selling, marketing, or advertising.
Infrastructure and facility-related costs, including facility modifications, immovable clean room installations, leasehold improvements, and costs related to construction or the purchase of a building or land.
In-kind contributions, retroactive costs incurred before project approval or the project start date, and inventory on hand prior to the project start.
Travel to advanced manufacturing or industry association conferences, NGen Admin Fees, and costs for which the recipient is eligible for a government rebate.
Activities where benefits accrue to a single firm or organization, full-scale production, anti-competitive activities, routine changes to existing operations, projects focused primarily on product design, and experimental or theoretical work without direct commercial application.

Eligible geographic areas

Canada

Selection criteria

Each project application is assessed on ten questions, with responses equally weighted and scored out of 100 marks at 10 marks per question.
Assessors must determine whether the project is in scope for funding for this challenge.
Assessors must determine whether the project is recommended for funding based on the overall application.
If the majority of assessors answer no to either gateway question, the application will not be considered for funding regardless of the overall score.
NGen reserves the right to take a portfolio approach across the call for proposal project areas.

How to apply

Become an NGen member and register as an Organization, not as an Individual.
Log in to the NGen portal, select Project, click New Project, complete Create New Project, and click Next.
Complete all required screening sections, including project member companies, project member contacts, project financials by partner, project information, project description, intake questions, project funding and finance questions, and the eligibility rules confirmation.
Upload the signed and dated Application Agreement executed by all partners to Files.
Click Save and Submit, then Submit for Screening by June 17th 2025, 5PM Eastern Time.
If successfully screened, submit the final application through the member portal before July 17th at 5:00 pm Eastern Time.

Processing and Agreement

Applicants who meet eligibility requirements at Project Screening will be invited to apply.
NGen undertakes a financial assessment of each participating project partner, and each member company must successfully pass Financial Due Diligence to complete contracting.
Full applications are assessed by up to 5 independent assessors, and NGen advises applicants directly whether their project has been successful or not.
All applicants receive feedback from the assessment process, and projects recommended for funding proceed to the contracting phase.
Selected funding recipients conclude a Master Project Agreement, consortium members must have a Collaboration Agreement, and post-award claims are submitted every three months with supporting documentation.

Additional information

More extensive engagement with manufacturers or applications involving multiple manufacturing sites are encouraged.
NGen can provide high-level guidance on scope criteria, project requirements, potential partners, and other funding sources before assessment.
Support is provided on a first-come, first-serve basis.
Emailing confidential or sensitive documents is not recommended, and project information can be reviewed through the secure Application portal.

Contacts

ai@ngen.ca

Frequently Asked Questions about the NGen — AI For Manufacturing Challenge (AI4M) Program

What is the NGen — AI For Manufacturing Challenge (AI4M)?

How much funding can be received?

NGen — AI For Manufacturing Challenge (AI4M) Funds up to 40% of admissible expenses, capped at $3,200,000 per project.

What is the deadline to apply?

The application deadline for this grant program was July 17, 2025.

Who is eligible for the NGen — AI For Manufacturing Challenge (AI4M) program?

To be eligible for the NGen — AI For Manufacturing Challenge (AI4M) program, you must: The applicant must be an NGen member company. Funding recipients must be a business registered in Canada with a value-added presence in Canada beyond a sales office. The project must be business-led and collaborative, focused on commercializing AI solutions in advanced manufacturing, and include at least one manufacturing company, one AI solution provider, and one SME partner.

What expenses are eligible under NGen — AI For Manufacturing Challenge (AI4M)?

Commercialization of AI solutions in advanced manufacturing. Systems optimization within manufacturing facilities or across supply chains. Development of new advanced manufacturing solutions, including autonomous vehicles, robotics, and automation equipment. Rapid prototyping and testing of materials, products, and processes. Introduction, development, and scale-up of AI solutions and related implementation activities required by manufacturers.