Ontario AI funding (RAII): who qualifies and how to apply.

The AI Adoption stream is the one most businesses will use. To apply, your business must:

• Be a for-profit business located and operating in southern Ontario when you apply, or a First Nations, Métis or Inuit business
• Be incorporated and registered to do business in Canada or Ontario
• Have at least 3 years of business operations
• Employ at least 5 and fewer than 500 full-time equivalent employees
• Show a commitment to the responsible development and use of AI

FedDev may give priority to businesses in five sectors: healthcare and life sciences, energy and natural resources, transportation, agriculture, and manufacturing and robotics. If your business sits outside these, ask FedDev about fit before you invest time in an application.

The second stream, AI Commercialization and Scale-Up, is for Canadian AI companies bringing their own products to market. It needs at least 1 year of operations, at least 1 full-time equivalent employee in southern Ontario, and fewer than 500 overall.

Eligible activities and costs include

• An AI readiness assessment
• Acquiring and integrating AI into your operations, beyond buying commonly available AI tools
• Training and capacity building
• Incremental fees for professional, technical and consulting services
• Equipment, machinery and software, plus incremental salaries for the project

Not eligible

• Projects that only buy commonly available AI tools
• Fees paid to consultants to prepare your application
• Ongoing operating costs, land, buildings, vehicles, hospitality, and refinancing debt

What the numbers mean

The smallest contribution is $125,000 and FedDev covers at most 50%, so a project needs at least $250,000 in eligible costs. FedDev assesses applications on several criteria, including your ability to repay and expected outcomes such as jobs created and revenue growth. Total government support can't exceed 50% of eligible capital costs and 75% of other eligible costs (up to 100% for Indigenous-led projects).

1. Download FedDev's fillable Application for Funding and the Supplemental Form. The supplemental form is required even if you answer no to every question.
2. Gather externally prepared financial statements for at least your last 2 years (1 year for the Commercialization stream), plus 3 to 5 years of projections.
3. Add your articles of incorporation, bios of key management and technical staff, a diagram of your company's structure, and a work plan or project schedule with milestones and budget.
4. Plan your intellectual property strategy. If your project is approved, having, implementing and maintaining one is a condition of funding.
5. Submit the application using the form's Submit button. If you're approved, you'll have 30 days to sign the contribution agreement.

In northern Ontario, incorporated small and medium-sized businesses may be eligible for up to 50% of eligible costs through FedNor, normally repayable for for-profit businesses. Applications are assessed as they arrive. AI readiness assessments, professional advisory fees and training are eligible, but routine software subscriptions and licence renewals aren't. FedNor states that retail and service-based businesses will not be considered.

• BDC's AI readiness assessment: a free five-minute quiz with a personalized report.
• AI Business Catalyst: an online AI readiness assessment plus in-person, virtual and hybrid training for southern Ontario SMBs, from World Trade Centre Toronto.
• Mitacs AI Advantage (ADOPT): support for organizations moving from AI readiness to implementation through funded placements, with the business covering part of the cost.

You can also start with a CGX AI Readiness Assessment, from $2,500. See pricing.

CGX runs AI readiness assessments, sets up AI solutions that fit how your business works, and trains your team. If you go on to apply, you'll have a clearer picture of the AI project you're proposing.

A few things to know:

• FedDev alone decides on funding and on which costs are eligible, in the contribution agreement. We can't promise approval.
• Fees paid to consultants to prepare an application aren't eligible costs.
• Project costs can only be claimed from up to 12 months before your application date, and costs incurred before a formal decision are at your own risk.
• CGX is an independent firm and isn't affiliated with or endorsed by FedDev Ontario, FedNor, BDC, World Trade Centre Toronto or Mitacs.

• FedDev Ontario: Regional Artificial Intelligence Initiative
• FedDev Ontario: who can apply
• FedDev Ontario: how funding works
• FedDev Ontario: when to apply
• FedDev Ontario: application guide
• FedNor: RAII for northern Ontario

This guide summarizes FedDev Ontario's and FedNor's published program information as of November 2, 2026. It isn't financial or legal advice. Confirm the details with FedDev Ontario or FedNor before you apply.