Funding Alert: Regional Artificial Intelligence Initiative (RAII) - Adoption Pillar 2

The Regional Artificial Intelligence Initiative- Adoption Pillar 2 will support Ontario businesses to adopt or integrate AI or AI-driven solutions

Funding Alert: Regional Artificial Intelligence Initiative (RAII) – Adoption Pillar 2

Through this pillar of the RAII, FedDev Ontario will support businesses to adopt or integrate AI or AI-driven solutions to improve operational efficiency, create productivity gains and strengthen competitiveness.

FedDev Ontario prioritizes projects that drive responsible and ethical AI adoption through strategic integration, process re-engineering, and capacity development in healthcare, enterprise, manufacturing, and mobility, aiming for economic, social, and environmental benefits.

Intake Period:

• Project start date: No earlier than Dec 20, 2024.
• End date: Must finish by Mar 31, 2029.
• Existing projects: Considered if not yet complete.
• Project length: SMEs- 1-2 years; multi-year projects are allowed

Application Deadline:

• December 20, 2024

Region:

• Southern Ontario

Program Funding Amount: Regional Artificial Intelligence Initiative – Adoption Pillar 2

* Fully repayable, interest-free contribution

• Funding: Up to $5M for businesses (exceptions may apply).
• Repayment: Fully repayable, interest-free; starts 1 year after project completion.
• Cost Sharing:
  • FedDev Ontario covers up to 50% of total costs.
  • Applicant must provide at least 50% (no in-kind contributions).
  • For Indigenous-led projects, FedDev Ontario may cover up to 100% of costs.

Note: Total government assistance cannot exceed 50 percent of eligible capital costs and 75 percent of eligible non-capital costs.

Eligible Applicants

• Incorporated and registered to do business in Canada or Ontario.
• 5-500 FTEs (Full-time equivalent employees).
• At least 3 years of operations (shown by financial statements).
• Demonstrate securing necessary IP rights
• Commitment to responsible AI development and use.

Which Activities Are Eligible?

The project should adhere to all the ethical principles listed below:

• Cybersecurity
• Human oversight and accountability
• Data governance and privacy
• Safety
• Accuracy and authenticity

Eligible Costs

Capital-Cost

• Machinery and equipment: Purchase and installation of equipment, machinery, or software.
• Project facilities and infrastructures: Costs for renovations or leasehold improvements directly related to installing specialized equipment, data, hardware, or other project assets.

Non-Capital Cost

• Labour: Incremental salaries and benefits for project employees
• Expertise: Legal and technical consultant fees.
• Marketing and Outreach: Promotional costs for project activities, product demonstrations, and translations, excluding hospitality and entertainment.
• Training and Talent: Costs for relevant training, course materials, and external trainers, not covered by other categories.
• Materials: Direct costs for project materials, prototypes, and testing, excluding regular operational raw materials.
• Project Management: Administrative costs like space rental, insurance, and reporting.
• Further Distribution: Funds up to $100K for recipient distribution.

Thinking of applying for financing? Don’t wait! These funds are highly competitive. Contact us today to get started!

Contact one of our Grant experts today and get your application started ASAP before program funding is depleted! We’re here to help and answer all of your questions.

Find out more about our Grants process here.