Funding Sources for Ontario SMEs Looking to Integrate AI

Funding Opportunities for SMEs to Integrate and Use AI in Ontario

This guide was put together with the help of AI

This guide was created to help SMEs in Ontario explore the various funding options available for AI integration. Be sure to check individual program eligibility criteria and deadlines before applying.

1. Regional Artificial Intelligence Initiative (RAII)

• Administered by: FedDev Ontario

• Funding Amount: Up to $5 million, covering up to 50% of eligible project costs

• Eligibility: For-profit businesses and not-for-profit organizations located in Southern Ontario

• Program Details:

  • AI Productization and Commercialization Stream: Supports projects focused on bringing AI-driven products and services to market.

  • AI Adoption Stream: Aids businesses in integrating AI solutions to enhance operational efficiency and competitiveness.

• Application Deadline: December 20, 2024

2. Digital Main Street – Digital Service Squad Grant

• Administered by: Digital Main Street

• Funding Amount: Up to $2,500

• Eligibility: Small businesses with a physical storefront in Ontario

• Program Details:

  • Offers a digital assessment, online training, and a grant to implement a digital transformation plan, which can include AI integration.

• Application Deadline: Program is currently closed; previously accepted applications until fully subscribed.

3. Canada Digital Adoption Program (CDAP)

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

• Funding Amount: Up to $15,000 grant and access to a $100,000 no-interest loan

• Eligibility: For-profit SMEs with at least one employee, incorporated in Canada, and committed to digital adoption

• Program Details:

  • Provides financial support and expert advice to help businesses develop and implement a digital adoption plan, including AI solutions.

• Application Deadline: Program is currently closed; previously accepted applications until fully subscribed.

4. Business Development Bank of Canada (BDC) Programs

• Programs Offered:

  • BDC Venture Capital: Investment funding for technology-based businesses at various development stages, including AI-focused companies.

  • BDC Technology Financing: Financing options for businesses planning to upgrade or purchase information and communications technology (ICT), such as AI solutions.

• Eligibility: Varies by program; generally targets technology-based SMEs.

• More Information: BDC Technology and Innovation

5. National Research Council Canada – Industrial Research Assistance Program (NRC-IRAP)

• Funding Amount: Variable; depends on project scope and needs

• Eligibility: Small and medium-sized Canadian businesses engaged in technology innovation, including AI development

• Program Details:

  • Provides advisory services and funding to support R&D and technology innovation projects.

• More Information: NRC-IRAP

6. Ontario Ministry of Economic Development, Job Creation and Trade (MEDJCT) – Investment Accelerator Fund (IAF)

• Funding Amount: Up to $500,000

• Eligibility: Emerging Ontario technology companies, particularly in IT, health, and cleantech sectors

• Program Details:

  • Offers seed funding to accelerate the commercialization of innovative technologies, including AI solutions.

• More Information: Ontario IAF

7. Mitacs Accelerate Program

• Funding Amount: Varies; co-funding model

• Eligibility: For-profit and not-for-profit businesses seeking to collaborate on AI research projects with academic institutions

• Program Details:

  • Provides funding to support collaborative research projects, including those focused on AI technologies.

• More Information: Mitacs Accelerate

8. Ontario Vehicle Innovation Network (OVIN)

• Funding Amount: Varies; co-investment funding model

• Eligibility: SMEs developing innovative technologies in connected, autonomous, electric, and smart mobility sectors, including AI applications

• Program Details:

  • Offers funding for R&D, technology adoption, and talent development in AI-related mobility technologies.

• More Information: OVIN

9. Ontario Collaborative Innovation Platform (OCIP)

• Funding Amount: Varies; depends on project scope

• Eligibility: Businesses seeking to collaborate with academic researchers on AI innovation projects

• Program Details:

  • Connects businesses with researchers and provides funding to support collaborative innovation projects, including AI developments.

• More Information: OCIP

10. Fundica Funding Search Platform

• Service Offered: AI-powered platform to match businesses with relevant funding opportunities

• Eligibility: Open to all businesses seeking funding, including those for AI projects

• Program Details:

  • Provides a comprehensive database of funding options, including grants, tax credits, loans, and equity funding, tailored to business needs.

• More Information: Fundica

Application Tips:

• Review Eligibility Criteria: Ensure your business meets the specific requirements of each program.

• Prepare Detailed Proposals: Ensure your project plan outlines how AI will enhance your business operations, and provide a clear roadmap for implementation.