Regional Artificial Intelligence Initiative (RAII)  |  Applications open until January 19, 2027

FedDev Ontario is accepting applications for federal funding to help southern Ontario businesses adopt AI, bring Canadian AI products to market, and build AI expertise. The program also supports eligible organizations helping businesses use AI.

Three funding streams

1. AI Adoption — For businesses and eligible established organizations

Supports substantial projects integrating AI into operations, such as equipment and process upgrades, AI readiness assessments, data improvements and staff expertise. It is not intended simply for everyday AI software subscriptions.

·        Businesses: $125,000–$5 million, interest-free and repayable; FedDev Ontario may cover up to 50% of eligible project costs.

·        Business applicants generally need 5–499 full-time equivalent employees and at least 3 years of operations.

2. AI Commercialization and Scale-Up — For businesses

Supports development, testing, commercialization and expansion of Canadian AI products and services.

·        $125,000–$5 million, interest-free and repayable; FedDev Ontario may cover up to 50% of eligible project costs.

·        Applicants generally need at least 1 full-time equivalent employee in southern Ontario, fewer than 500 overall, 1 year of operations, and technology readiness level 6 or higher.

3. AI Ecosystem — For eligible organizations

Supports organizations delivering AI expertise, training, demonstrations, partnerships and other services to businesses.

·        $125,000–$10 million in non-repayable contributions; applicants must provide at least 10% of project funding from other sources.

For not-for-profit applicants, eligibility is more restrictive: generally at least 5 full-time equivalent employees and $1 million in annual revenue or operating expenses, alongside stream-specific conditions. AI Adoption funding for eligible organizations is $125,000–$5 million, non-repayable.

Who should take a closer look?

Manufacturers, transportation and logistics businesses, agricultural enterprises, healthcare and life-sciences companies, and energy businesses are among priority sectors for transformative AI adoption. Projects in other sectors may also be considered. Applicants must meet responsible AI, intellectual property and other program requirements.

 Key dates

·        November 24, 2026 — apply by this date if proposed project costs will start before March 31, 2027.

·        January 19, 2027, 4:59 p.m. EST — general application intake closes.

Applications require a project plan and budget, financial information and supporting documents. Funding is subject to approval and is generally paid by reimbursement.

Official information and applications

Review the full eligibility rules, application guide and required forms directly with FedDev Ontario:

Regional Artificial Intelligence Initiative — FedDev Ontario

Canada’s National Artificial Intelligence Strategy — AI for All

Questions? FedDev Ontario: regionaloutreach-rayonnementregional@feddevontario.gc.ca  |  1-866-593-5505

Prepared by the Stoney Creek Chamber of Commerce.  This summary is informational; official FedDev Ontario guidelines govern eligibility and funding decisions.

Stoney Creek Chamber of Commerce  l Growing Business Together — Since 1949