Canada Adds C$500 Million to Regional Artificial Intelligence Initiative

Canada is adding C$500 million over five years to expand artificial intelligence adoption and commercialization, bringing total federal funding for the Regional Artificial Intelligence Initiative (RAII) to C$700 million.

The program supports businesses integrating AI into their operations and Canadian AI companies developing, commercializing and expanding their products. It is delivered through Canada’s regional development agencies and forms part of the national “AI for All” strategy announced in June.

The government announced the funding in Ottawa on Oct. 13, 2026, framing the initiative as a way to strengthen regional economies and retain AI talent, technology and economic value in Canada.

“The question is not whether AI will reshape our economy. It is whether Canada will capture the opportunity,” Evan Solomon, Canada’s minister of artificial intelligence and digital innovation, said.

RAII’s priority areas include health and life sciences, energy and natural resources, transportation, agriculture, manufacturing and robotics. Since the initiative launched in 2024, 218 projects have adopted or commercialized AI, creating or maintaining more than 1,100 jobs. Those projects leveraged approximately C$1.77 for every dollar approved.

The program is intended to help small and medium-sized enterprises and other organizations integrate AI into their operations. It also supports companies demonstrating, commercializing and scaling AI products, along with organizations that connect businesses with AI expertise and commercialization assistance.

Eligible applicants in Quebec include AI startups, other small and medium-sized enterprises, nonprofit organizations that support SMEs, and Indigenous-led businesses and nonprofits. For Quebec applicants, repayable support for SMEs can cover up to 50% of authorized costs. Support for nonprofits is generally non-repayable and can cover up to 90%.

Applications are accepted until Jan. 19, 2027. Projects with eligible costs incurred before March 31, 2027, must be submitted by Nov. 24, 2026.