Regional Artificial Intelligence Initiative (RAII) for Northern Ontario
Last Update: July 22, 2025
ON, Canada
Funding AI commercialization and adoption in Northern Ontario businesses
Regional Artificial Intelligence Initiative (RAII) for Northern Ontario at a glance
Eligible Funding
- Up to 75% of project cost
Timeline
- Continuous Intakes
Financing Type
Grant and Funding
Eligible Industries
- Agriculture, forestry, fishing and hunting
- Mining, quarrying, and oil and gas extraction
- Manufacturing
- Health care and social assistance
Grant Providers
- Federal Economic Development Agency for Northern Ontario (FedNor)
Program status
Open
Overview of the Regional Artificial Intelligence Initiative (RAII) for Northern Ontario program
The Regional Artificial Intelligence Initiative (RAII) for Northern Ontario offers up to $200 million to support AI commercialization and adoption, targeting sectors such as agriculture, health sciences, and manufacturing. Eligible activities include AI technology demonstration, capacity development, strategic AI integration, and ecosystem support for small and medium-sized enterprises.
Financing terms and conditions
- Contributions to for-profit organizations are normally repayable, with repayment terms determined during the contribution agreement development.
- For-profit organizations are eligible for reimbursement of up to 50% of capital costs and 75% for non-capital costs.
- All government funding for a project cannot exceed 50% of eligible capital costs and 75% of other eligible costs.
- Contributions to not-for-profit organizations are typically non-repayable.
- Not-for-profit organizations are eligible for up to 75% of eligible costs.
- All government funding for a project cannot exceed 100% of eligible costs for not-for-profit organizations.
- The contribution amount will be based on the minimum required to carry out the project.
Eligible projects & activities
- Technology demonstration or commercialization of Canadian-made AI technologies and solutions.
- Development of activities and capabilities to support the expansion of AI technologies under development and AI-based solutions.
- Capacity building of AI clusters and ecosystem to help start-ups commercialize AI solutions.
- Strategic AI adoption and integration of AI technologies and solutions that drive innovation, growth and productivity.
- Process reengineering and capacity building for AI adoption.
- Ecosystem support for AI adoption by small and medium-sized enterprises.
Examples of admissible projects:
$ 350,000
Develop AI systems for precision agriculture in Northern Ontario
$ 500,000
Integrate AI for automated health diagnostics in remote clinics
$ 400,000
Launch AI platform for manufacturing process optimization
Eligibility criteria of the Regional Artificial Intelligence Initiative (RAII) for Northern Ontario program
- Eligible applicants include incorporated small and medium-sized enterprises, incorporated not-for-profit organizations, Indigenous communities and organizations, and municipalities and municipal organizations.
- Retail and service-based businesses are ineligible.
- Applicants must be commercializing and/or adopting AI solutions.
- Project benefits must accrue to Northern Ontario.
- Applicants must be legal entities capable of entering into legally binding agreements.
- Applicants must demonstrate a sustainable business model with normally at least two years of operations.
- Applicants must have the financial capacity to complete the project and repay the contribution in full.
- Managerial, technical, and operational capacity to achieve the project's objectives in a timely manner must be demonstrated.
- The project must address a significant market gap or a global opportunity within Canada, with evidence that Northern Ontario is uniquely positioned to capture market share.
- The project should have the potential for market growth, diversification of export markets, and/or participation in global value chains.
- A viable project plan with achievable outcomes supported by verifiable cost estimates is required.
- Commercialization projects must be at Technology Readiness Level (TRL) 7 or higher.
- Appropriate legislative/regulatory requirements regarding responsible and ethical AI use, IP management, and data security/privacy considerations must be met and mitigated where necessary.
Who is eligible?
- Incorporated small and medium-sized enterprises commercializing and/or adopting AI solutions.
- Incorporated not-for-profit organizations involved in AI technologies.
- Indigenous (First Nation/Métis/Inuit) communities and organizations adopting AI.
- Municipalities and municipal organizations integrating AI solutions.
Who is not eligible
- Retail businesses.
- Service-based businesses.
Eligible expenses
- Capital costs: purchase of machinery, equipment, and facility upgrades.
- Operating costs that are incremental and measurable.
- Project-specific direct labour (e.g., wages and benefits) and subcontractor costs.
- Professional advisory and technical services fees.
- Preproduction costs (e.g., prototyping, technological development, and commercial demonstrations).
- Commercialization costs (e.g., costs related to intellectual property).
- Training and talent development costs.
- Costs related to specialized services and materials (e.g., testing services, technical or innovation services, sector strategies in domestic markets).
Eligible geographic areas
- Northern Ontario
Eligibility criteria of the Regional Artificial Intelligence Initiative (RAII) for Northern Ontario program
- Demonstration of a sustainable business model, typically supported by two years of operations.
- Proven financial capacity to complete the project and fully repay the contribution.
- Managerial, technical, and operational capacity to achieve the project's stated objectives in a timely manner.
- Evidence of market/industry demand, showcasing how the project addresses significant market gaps or seizes global opportunities within Canada.
- Potential for market growth, diversification of export markets, and/or participation in global value chains.
- A viable, achievable project plan backed by verifiable cost estimates.
- Projects at Technology Readiness Level (TRL) 7 or higher for commercialization endeavors.
- Compliance with relevant legislative/regulatory requirements, including the Artificial Intelligence and Data Act (AIDA), ensuring responsible and ethical AI use, proper intellectual property management, and data security/privacy considerations.
How to apply to the Regional Artificial Intelligence Initiative (RAII) for Northern Ontario program
1
Initial Consultation
- Contact a FedNor Officer at 1-877-333-6673 to discuss your proposal.
- Clarify any questions regarding eligibility or application requirements.
2
Review Application Guides
- Access and review both the initial and detailed application guides through the FedNor portal.
- Ensure understanding of all necessary guidelines and requirements.
3
Phase One - Initial Application Submission
- Log into the FedNor self-service portal to begin the application process.
- Complete all required sections of the initial application form.
- Prepare preliminary proposal details and supporting documents.
4
Phase Two - Detailed Application Submission
- If successful in the initial phase, proceed to complete the detailed application form provided by FedNor.
- Submit detailed project proposals, financial projections, and other necessary documents.
5
Confirmation and Review
- Receive confirmation of application submission from the FedNor portal.
- FedNor will review all applications as they are received, including a business case assessment and financial review.
Additional information
- There is a retroactive eligibility for costs incurred within 12 months prior to application receipt, not before April 16, 2024.
- All government funding for a project should not exceed specific percentage limits based on the nature of the costs.
Contact Federal Economic Development Agency for Northern Ontario (FedNor)
1-877-333-6673
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