Canada adds $500 million to its Regional Artificial Intelligence Initiative for AI adoption and scale-ups

Canada's Minister of Artificial Intelligence and Digital Innovation, Evan Solomon, announced on 13 October that an additional $500 million over five years is now available through an expanded Regional Artificial Intelligence Initiative, bringing total federal funding for the initiative to $700 million. Delivered by Canada's regional development agencies, it will help businesses and organisations adopt AI and help Canadian AI firms gain customers, attract investment and commercialise and scale their products, with a focus on sectors such as health and life sciences, energy and natural resources, transportation, agriculture, manufacturing and robotics. The initiative is part of AI for All, the national AI strategy announced in June 2026. According to the release, applications are being accepted in southern Ontario until 19 January 2027, and proposed projects with eligible costs before 31 March 2027 must be submitted by 24 November 2026. Since the initiative launched in 2024, 218 projects have been supported, creating or maintaining over 1,100 jobs.

What it means for business: Canadian firms planning to adopt or commercialise AI can apply through the regional development agency for their area; in southern Ontario, note the 24 November 2026 cut-off for projects with costs before 31 March 2027.