Canadian AI Grants Guide

Canadian Business AI Grants Guide 2025

Integrating Artificial Intelligence (AI) can significantly enhance the competitiveness and efficiency of Small and Medium-sized Enterprises (SMEs) across Canada. Various federal and provincial programs offer funding and support to assist businesses in adopting and developing AI technologies. Below is a comprehensive guide to these opportunities, including practical details on eligibility, funding amounts, application processes, and relevant links.

This guide was put together with the help of AI.

Please note that some links may stop working as grants close.

Federal Programs

1. AI Compute Access Fund

• Administered by: Innovation, Science and Economic Development Canada (ISED)

• Funding Amount: Covers up to two-thirds of costs (up to $3.35 million) for Canadian cloud-based AI compute services; up to half of costs (up to $2.5 million) for non-Canadian cloud-based AI compute services.

• Eligibility:

  • Incorporated in Canada.

  • Fewer than 500 full-time employees.

  • Generating revenue or have Series A financing.

  • Canada-based R&D team developing AI products or services.

  • Existing AI compute service agreement in place.

• Application Process: Submit an expression of interest through the AI Compute Access Fund portal.

2. Regional Artificial Intelligence Initiative (RAII)

• Administered by: Canada's Regional Development Agencies (RDAs)

• Funding Amount: Up to $5 million per project.

• Eligibility:

  • Incorporated businesses and not-for-profit organizations.

  • Engaged in commercialization or adoption of AI technologies.

  • Preference for SMEs with fewer than 500 full-time employees.

• Application Process: Applications are submitted through the respective regional development agency's website.

3. AI Assist Program

• Administered by: National Research Council Canada Industrial Research Assistance Program (NRC IRAP)

• Funding Amount: Covers up to 80% of internal technical labour and subcontractor expenses.

• Eligibility:

  • Canadian SMEs engaged in AI and tech-related R&D projects.

• Application Process: Contact a local NRC IRAP Industrial Technology Advisor (ITA) to discuss project eligibility and submit a funding proposal.

4. Scale AI Acceleration Program

• Administered by: Scale AI

• Funding Amount: Up to $50,000 per supported startup or SME focused on building applied AI products and services for value chains.

• Eligibility:

  • Startups and SMEs based in Canada.

  • Focused on applied AI solutions for supply chains.

• Application Process: Submit an eligibility request through the Scale AI website.

5. Scientific Research and Experimental Development (SR&ED) Tax Incentive Program

• Administered by: Canada Revenue Agency (CRA)

• Funding Amount: Tax credits covering up to 69% of labour and overhead costs, 36% of contractor costs, and 45% of material costs.

• Eligibility:

  • Canadian businesses conducting eligible R&D activities, including AI research.

• Application Process: File Form T661 with your income tax return. Detailed guidance is available on the CRA website.

Provincial Programs

Alberta

1. Alberta Innovation Voucher and Micro-Voucher Programs

• Administered by: Alberta Innovates

• Funding Amount: Varies; vouchers up to $100,000.

• Eligibility:

  • Alberta SMEs in technology and knowledge-based sectors.

• Application Process: Apply through Alberta Innovates' website.

2. AI-Better Health Program

• Administered by: Alberta Innovates

• Funding Amount: Up to $300,000 over 24 months

• Eligibility:

  • Projects led by Alberta-based organizations in collaboration with post-secondary or healthcare partners

  • Must apply AI to improve healthcare delivery or health outcomes

• Application Process: Application guide and forms available on Alberta Innovates' website

Saskatchewan

1. Saskatchewan Advantage Innovation Fund (SAIF)

• Administered by: Innovation Saskatchewan

• Funding Amount: Up to 50% of eligible costs, typically between $100,000–$500,000

• Eligibility:

  • Saskatchewan-based SMEs commercializing technology, including AI applications

• Application Process: Online application through Innovation Saskatchewan; proposal and financial plan required

Manitoba

1. Innovation Growth Program (IGP)

• Administered by: Government of Manitoba

• Funding Amount: Up to 50% of eligible costs (maximum $100,000)

• Eligibility:

  • Manitoba-based SMEs developing innovative products or services, including AI

• Application Process: Application form and business plan submission required via provincial website

2. AI Training Initiative

• Administered by: Manitoba Chambers of Commerce

• Funding Amount: Support from a $2 million provincial fund

• Eligibility:

  • Manitoba SMEs seeking to adopt AI through workforce upskilling or AI integration

• Application Process: Details via Manitoba Chambers of Commerce; may require participation in approved training programs

Ontario

1. RAII - FedDev Ontario

• Administered by: FedDev Ontario

• Funding Amount: Up to $5 million; interest-free and repayable

• Eligibility:

  • Southern Ontario businesses developing or adopting AI technologies

• Application Process: Submit proposal via FedDev portal; includes financials and business plan

2. Digital Main Street - Transformation Grant

• Administered by: Digital Main Street

• Funding Amount: $2,500 grants

• Eligibility:

  • Ontario-based small businesses with a physical storefront

  • Includes AI-driven digital tools adoption

• Application Process: Digital transformation plan submission via DMS portal

Quebec

1. DémultiplIA Program

• Administered by: IVADO

• Funding Amount: Minimum $30,000/year for three years

• Eligibility:

  • Quebec SMEs working with academic researchers in AI

• Application Process: Cohort-based selection; proposals submitted through IVADO's platform

2. Partenar-IA Program

• Administered by: Prompt Quebec

• Funding Amount: Up to 40% of eligible project costs

• Eligibility:

  • Collaborative projects between Quebec companies and public research centers

• Application Process: Ongoing intake; application via Prompt’s submission portal

Nova Scotia

1. Digital Assistance and Adoption Program

• Administered by: Digital Nova Scotia

• Funding Amount: Varies by project; covers consulting and technology tools including AI

• Eligibility:

  • Nova Scotia-based SMEs aiming to digitally transform

• Application Process: Register with DNS and apply through the online platform

2. Volta AI Program

• Administered by: Volta

• Funding Amount: Customized mentorship and resources (non-cash)

• Eligibility:

  • Atlantic Canada AI startups and early-stage companies

• Application Process: Apply for residency and support via Volta’s website

New Brunswick

1. Innovation Voucher Fund

• Administered by: NBIF

• Funding Amount: Up to $80,000

• Eligibility:

  • New Brunswick SMEs collaborating with academic or research institutions

• Application Process: Submit online application through NBIF

2. Digital Transformation Grant

• Administered by: Ignite Fredericton

• Funding Amount: Typically $3,000–$5,000

• Eligibility:

  • Local SMEs adopting new technologies including AI

• Application Process: Apply via partner organizations

Newfoundland and Labrador

1. Business Innovation Program (BIP)

• Administered by: Government of Newfoundland and Labrador

• Funding Amount: Up to 50% of eligible costs; generally $100,000–$200,000 for commercial projects

• Eligibility:

  • Newfoundland and Labrador-based businesses developing innovative technology, including AI

  • Applicable to pre-commercial R&D and product commercialization

• Application Process: Application form and business case submitted via the provincial Department of Industry, Energy and Technology

Prince Edward Island

1. Innovation Fund

• Administered by: Innovation PEI

• Funding Amount: Up to 50% of eligible costs; generally $100,000 max

• Eligibility:

  • PEI-based businesses developing or adopting innovative technologies

  • Projects involving AI or machine learning are eligible

• Application Process: Apply online through Innovation PEI with project outline and budget

2. Small Business Investment Grant

• Administered by: Innovation PEI

• Funding Amount: 15% rebate on eligible capital investments (up to $3,750)

• Eligibility:

  • PEI-based incorporated companies with active CRA business number

  • Digital transformation (including AI) eligible under IT expenditures

• Application Process: Online submission with proof of purchase and business details

Yukon

1. Technology and Innovation Program

• Administered by: Government of Yukon

• Funding Amount: Up to $100,000 (tiered based on project type)

• Eligibility:

  • Yukon-based businesses, First Nations governments, and non-profits developing new tech or innovating existing products

  • AI adoption and development projects are eligible

• Application Process: Submit project proposal through Economic Development’s online portal

Northwest Territories

1. SEED (Support for Entrepreneurs and Economic Development) Program

• Administered by: Industry, Tourism and Investment (GNWT)

• Funding Amount: Up to $25,000 per year (varies by category)

• Eligibility:

  • NWT-resident entrepreneurs or SMEs involved in innovation, including digital and AI projects

• Application Process: Apply via regional ITI office with a business plan and cost estimates

Nunavut

1. Small Business Support Program – NDC

• Administered by: Nunavut Development Corporation

• Funding Amount: Up to $50,000 per business annually (project dependent)

• Eligibility:

  • Nunavut-based entrepreneurs and small businesses

  • Innovative technologies and digital transformation eligible

• Application Process: Application and financial plan submitted to NDC for evaluation

✅ Next Steps for SMEs:

1. Assess Your Readiness: Determine whether your project involves developing, commercializing, or adopting AI.

2. Match Program to Stage: Federal programs are strong for R&D and scaling, while provincial programs help with early adoption and collaboration.

3. Prepare Supporting Docs: Most programs require a business plan, budget, and evidence of innovation or collaboration.

4. Apply Early: Many grants are competitive or cohort-based — deadlines and intakes vary.