NGen — AI For Manufacturing Challenge 2024

This grant supports projects with a structured financing model to encourage AI-enabled manufacturing innovation while ensuring effective use of resources. The funding framework outlines specific cost-sharing and expenditure allowances.

• NGen will reimburse 35% of total eligible project costs.
• Total project costs must be between CAD $1.5 million and CAD $6 million.
• The maximum value allowed for NGen funding support per project is CAD $2.1 million.
• Capital expenditures can comprise up to 45% of the total project costs, subject to approval if exceeding CAD $1 million for any single item.
• The total amount of sub-contracted or consulting costs cannot exceed 40% of total project costs.
• No individual partner may receive more than 80% of NGen funding.
• Project administration fees are set at 5% of the total project cost, payable to NGen with 3.5% at project launch and 1.5% within nine months thereafter.

Eligibility for this grant is determined by specific requirements related to the applicant's profile and the nature of the proposed project collaboration.

• The applicant must be an organizational member of NGen, registered via their official website.
• Funding recipients must be incorporated in Canada as for-profit organizations, not-for-profit organizations facilitating and funding research and development with predominantly private sector funding, or non-federal crown corporations funded through commercial activities.
• Projects must include at least two industry partners: one manufacturing company and one AI solution provider.
• At least one of the companies involved must be a Small Medium Enterprise (SME) defined as having less than 500 employees globally.
• Projects should focus on the commercialization of AI/ML solutions in manufacturing, be business-led, and involve collaboration.
• Projects must not involve prior technology developed; they should focus on novel AI or ML technologies applied in advanced manufacturing.
• All project activities and expenses must be undertaken and incurred in Canada.
• NGen will reimburse 35% of total eligible project costs, with project costs ranging between CAD $1.5M and CAD $6M.

Who is eligible?

This grant is open to organizational members of NGen involved in advanced manufacturing and AI technology development in Canada.

• Manufacturing companies incorporated in Canada.
• AI solution providers incorporated in Canada.
• Small and Medium-sized Enterprises (SMEs) incorporated in Canada.
• Collaborative projects with at least one manufacturing company, one AI solution provider, and one SME partner.
• Non-profit organizations facilitating R&D, funded primarily by private sector organizations.
• Non-federal crown corporations funded through commercial activities.
• International organizations can participate but cannot receive funding.

Who is not eligible

The AI for Manufacturing (AI4M) funding challenge outlines specific project and involvement exclusions to ensure the focus remains on advancing Canadian manufacturing capabilities. Non-eligible participants include industries or activities that do not align with these strategic goals.

• International organizations (offshore companies and research organizations without an incorporated presence in Canada).
• Projects or activities conducted outside of Canada.
• Projects related to experimental or theoretical work without any direct commercial application.
• Production activities or activities that subsidize full-scale production.
• Capital investment unrelated to the creation of new AI-enabled manufacturing capabilities.
• Activities viewed as anti-competitive.
• Projects where benefits accrue to a single firm or organization.
• Projects at the same scale or scope without NGen funding.
• Routine or periodic changes to existing products or services.

Eligible expenses

The AI4M Challenge Grant supports projects that leverage AI technologies to drive advancements in Canadian manufacturing. These eligible projects emphasize commercialization and collaboration between industry and technology partners.

• Systems optimization within manufacturing facilities or across supply chains, such as automating and optimizing machines and processes.
• Development of new advanced manufacturing capabilities, including robotics and automation equipment.
• Rapid prototyping and testing of materials, products, and processes to enhance manufacturing efficiency.
• Enhancement of cybersecurity in manufacturing facilities and processes to secure AI applications.
• Development of other AI-enabled manufacturing capabilities that are transformative and commercializable.

Eligible geographic areas

This grant is specifically for companies incorporated in Canada. Eligibility is determined by the incorporation status of the organization within Canadian borders.

• Organizations incorporated anywhere in Canada.

The evaluation and selection of projects for the AI4M Challenge Program grant focus on ensuring projects meet the strategic objectives set by NGen and deliver substantial benefits to the Canadian manufacturing sector. Projects are assessed by independent experts based on the following criteria, each scored out of 80 marks based on responses to eight core questions.

• Overall project opportunity and transformative impacts (10 marks).
• Economic benefits to consortium partners and beyond (10 marks).
• Enduring ecosystem and social benefits to Canada (10 marks).
• Project commercialization strategy (10 marks).
• Effectiveness and detail of the project plan (10 marks).
• Comprehensiveness of the risk management plan (10 marks).
• Quality of collaboration and partner contributions (10 marks).
• Rationale for NGen funding and financial commitment (10 marks).

Projects must be in addition to the regular business undertakings of the applicants and involve at least one manufacturing company and one AI solution provider, with total project costs between CAD $1.5M and CAD $6M. There will be two rounds of intakes with specific deadlines and a comprehensive financial due diligence process.

• Projects are expected to be completed by January 31, 2026.
• NGen will reimburse 35% of total eligible project costs.
• International organizations may participate, but their activities will not be eligible for funding.
• Screening Deadline: June 14, 2024 (5 pm EST)
• Final Application Deadline: July 4, 2024 (5 pm EST)
• 2nd Round Project Screening Deadline July 19, 2024 (5 pm EST)
• 2nd Round Final Application Deadline August 9, 2024 (5 pm EST)
• Funding support capped at CAD $2.1 million per project.
• Contact: ai@ngen.ca