Funding for AI adoption is now on the table for Canadian SMEs

On October 13, 2026, the Federal government reopened and announced an expansion to the Regional Artificial Intelligence Initiative (RAII) program.

This expansion brings in $500M of additional federal funding which will be used to accelerate responsible AI adoption, commercialization and growth across Canada.

For eligible applicants, $125,000 to $5,000,000 of interest-free funding is available to support AI adoption, commercialization and scale-up.

What supports are available

Three streams are available:

AI Adoption

To help small and medium-sized enterprises and not-for-profit organizations adopt and integrate AI into their workflow to improve productivity and facilitate growth.

Eligible projects revolve around the responsible integration of AI into operations, products, and services. Including but not limited to:

• AI implementation, integration and adoption
• Automation and robotics adoption
• Predictive analytics and decision-support systems
• AI-enabled optimization
• Resilience measures such as strengthening cybersecurity and responsible AI governance

AI Commercialization

This stream specifically targets Canadian AI entrepreneurs, start-ups, and scaleups who are looking to validate, commercialize, deploy, and scale their AI solutions for global markets.

Eligible projects focus on the commercialization of Canadian AI products and services, including but not limited to:

• Technology validation, demonstration and deployment
• Product development and refinement
• Commercialization, scale up, supply-chain integration and capacity development
• Customer acquisition and procurement readiness
• Intellectual property exploitation and protection

AI Ecosystems

For regional organizations, incubators, accelerators, and other not-for-profit organizations delivering vital technical, advisory, and market support for businesses, this stream aims to strengthen their operations.

How much support is available

For the SMEs and for-profit organizations, up to 50% of repayable financial support is available.

For not-for-profit organizations, up to 90% of non-repayable financial support is available.

The minimum funding request may vary per regional development agency (RDA). However, this ranges from $125,000 to $5,000,000 of repayable funding.

Who are eligible

Typically, incorporated for-profit businesses with at least one full time employee on payroll are eligible. However, as the program is delivered through Canada’s regional development agencies (RDAs), the eligibility requirements may vary. 

It’s best to look at the RDA in your area to determine if your organization is eligible:

Atlantic Canada
Atlantic Canada Opportunities Agency (ACOA)

Quebec
Canada Economic Development for Quebec Regions (CED)

Yukon, Northwest Territories and Nunavut
Canadian Northern Economic Development Agency (CanNor)

Northern Ontario
Federal Economic Development Agency for Northern Ontario (FedNor)

Southern Ontario
Federal Economic Development Agency for Southern Ontario (FedDev Ontario)

Prairie provinces
Prairies Economic Development Canada (PrairiesCan)

British Columbia
Pacific Economic Development Canada (PacifiCan)

What you should do next

Funding availability and application periods vary by province. Some application windows may close soon, so SMEs or start-ups interested in the Regional Artificial Intelligence Initiative program should act fast. 

Not sure where to start? Grant Fund Pro helps Canadian businesses identify relevant grants, loans, tax credits, and other funding opportunities based on their operations, location, and growth plans. Connect with us today.