Blog
Blog
Artificial intelligence (AI) is at the heart of today’s economic, industrial, and societal transformations. It is redefining business models, optimizing processes, and paving the way for new forms of innovation across all sectors: healthcare, finance, manufacturing, agriculture, services, and more.
Canada, fully aware of the strategic importance of this technology, has implemented a series of initiatives to support its development and adoption. AI funding thus becomes a strategic lever, not only to strengthen the competitiveness of Canadian businesses but also to position the country as a global leader in this field.
In this context, it is essential to understand the available support mechanisms and the concrete opportunities offered to businesses. This article presents the main AI funding programs in Canada, aiming to help companies better understand available opportunities and effectively structure their innovation financing strategies.
In 2024, the Canadian government launched a new Sovereign Compute Strategy for AI with a budget of $2 billion. The objective: to strengthen the country’s autonomy in high-performance computing—an essential component for training advanced AI models.
This strategy aims to:
By investing in local and accessible compute capabilities, Canada seeks to reduce dependency on cloud giants and provide Canadian innovators with the means to remain globally competitive.
Scale AI, Canada’s AI supercluster, plays a strategic role in the digital transformation of businesses by supporting concrete projects, specialized training, and the growth of tech startups. Its activities revolve around several complementary programs aimed at accelerating AI adoption across industrial value chains while strengthening skills and the entrepreneurial ecosystem nationwide.
The flagship Scale AI program focuses on industry-led projects. It funds collaborative initiatives between businesses, research centers, and technology providers to integrate high-impact AI solutions in sectors such as logistics, manufacturing, healthcare, and retail. These projects address complex challenges related to planning, inventory management, flow optimization, and automated decision-making. The goal is to generate measurable productivity gains while fostering the creation of Canadian intellectual property.
Alongside project funding, Scale AI runs a training program designed to address the talent shortage in digital intelligence. It financially supports continuing education pathways, professional certifications, and university courses accessible to diverse audiences: career changers, current professionals, students, and researchers. The training covers key areas like data science, machine learning, cybersecurity, data governance, and AI ethics, with a focus on practical application in industrial settings.
Finally, the Acceleration program aims to propel innovative startups and SMEs by providing financial and strategic support. In partnership with incubators and accelerators, Scale AI assists with technology product development, market validation, and access to investor networks. This program helps foster a new generation of Canadian companies capable of competing internationally in AI.
The Canadian government’s Regional AI Initiatives program aims to support AI adoption in businesses through projects tailored to local economic realities. Managed by Regional Development Agencies (RDAs), these programs oversee fund management and calls for proposals in their respective territories.
The objectives are to accelerate AI adoption by SMEs by providing concrete access to resources, expertise, and tailored financing. They also aim to strengthen regional innovation capacities by supporting the creation of technology hubs, applied laboratories, and knowledge transfer networks. Furthermore, these initiatives actively encourage collaborations between businesses, research centers, universities, and local institutions to foster impactful projects and maximize AI’s economic and social benefits in every region.
Each RDA adapts the program to its economic context:
These regional initiatives complement national programs by offering localized support and targeted financing.
While this article highlights major programs, numerous other AI-specific funding mechanisms exist at federal, provincial, and municipal levels. These cover a wide range of needs—from early-stage technology exploration to mature solution commercialization, including prototyping, pilot testing, and industrial integration. They target startups, SMEs, and large enterprises alike, with financing modalities adapted to project size and technological maturity.
Beyond grants, Canadian businesses can benefit from various tax incentives supporting AI projects. The Scientific Research and Experimental Development (SR&ED) tax credit remains one of the most widely used tools, allowing recovery of a significant portion of technology experimentation expenses.
In Quebec, this program is bolstered by provincial measures like the tax credit for electronic business development (CDAE), aimed at companies in the digital sector.
These incentives can be combined with private funding sources such as venture capital or corporate investments to form particularly effective hybrid financing structures.
Structuring such financing requires a good understanding of available programs and their conditions. It is not enough to submit an application; one must know how to strategically combine public and private support, considering project goals and timelines.
Our innovation funding experts are here to help companies structure their financing strategies. Thanks to their in-depth knowledge of public programs, tax incentives, and administrative requirements, they assist in building coherent financial plans tailored to each project’s technological and commercial objectives. This support not only optimizes obtained funding amounts but also secures the entire process, avoiding costly mistakes and maximizing economic benefits.
Contact our team for an assessment of your eligibility for AI funding programs in Canada. 📩
