Your AI project could be
50-80% funded
Canadian businesses have access to billions in government funding for AI and innovation projects. Most don't know it exists. Here's your complete guide.
The Canadian government is investing heavily in AI adoption. Microsoft alone is putting C$19 billion into Canadian AI infrastructure. Federal and provincial programs offer grants, tax credits, and advisory support specifically for businesses implementing AI.
The problem? Most SMBs don't know these programs exist. And the ones that do find the application process opaque and time-consuming. Grant consultants don't understand AI. AI consultants don't mention grants. We do both.
Below is a comprehensive guide to the major programs available to Canadian businesses implementing AI. We've structured this around practical eligibility — not bureaucratic language — so you can quickly determine which programs apply to your situation.
Available programs
NRC IRAP
National Research Council — Industrial Research Assistance Program
Canada's premier innovation funding program. IRAP provides financial assistance and advisory services to help Canadian SMEs increase their innovation capacity and commercialize new technologies. AI implementation projects are a strong fit — especially custom agent systems, automation platforms, and novel AI applications.
Eligibility
- Canadian-incorporated SME with 500 or fewer full-time employees
- Project must involve technological innovation or advancement
- Must demonstrate clear business benefit and commercialization potential
- AI projects qualify when they involve novel application or integration
Coverage
Typically covers 50-80% of eligible project costs including contractor fees, salaries, and materials
Timeline
Application to approval: 4-8 weeks. Projects can run 6-24 months.
Best for
Custom AI agent development, multi-agent systems, novel automation platforms
RAII
Responsible AI Initiative
A newer federal program specifically designed to support responsible AI adoption in Canadian businesses. Focuses on ensuring AI implementations follow ethical guidelines, include proper governance, and create measurable economic value. This is particularly relevant for businesses implementing AI for the first time.
Eligibility
- Canadian businesses adopting AI for operational improvement
- Projects must include responsible AI practices (bias testing, transparency, governance)
- Priority given to SMEs and underserved sectors
- Must demonstrate economic impact and job creation/preservation
Coverage
Varies by stream — typically 50-75% of eligible costs
Timeline
Rolling applications with periodic intake windows
Best for
First-time AI implementations, AI governance frameworks, ethical AI deployment
SR&ED
Scientific Research & Experimental Development Tax Credit
Not a grant — a tax credit. And one of the most generous R&D incentives in the world. If your AI project involves technological uncertainty and systematic investigation (most custom AI implementations do), you can claim SR&ED credits on the work. This includes salaries, contractor fees, and materials used in the R&D portion of the project.
Eligibility
- Canadian business performing R&D in Canada
- Work must involve technological uncertainty (not routine engineering)
- Must follow systematic investigation approach
- AI projects qualify when they involve novel architectures, algorithms, or applications
Coverage
35% refundable credit for CCPCs (first $3M), 15% non-refundable above that
Timeline
Claimed retroactively with your tax filing. Up to 18 months after fiscal year-end.
Best for
Any AI project with a research/experimentation component — custom models, novel integrations
FedDev Ontario
Federal Economic Development Agency for Southern Ontario
Regional development funding for businesses in Southern Ontario (including Ottawa). Offers several programs supporting business growth, innovation, and technology adoption. AI projects that create jobs, improve productivity, or strengthen regional competitiveness are strong candidates.
Eligibility
- Business located in Southern Ontario
- Project must contribute to regional economic development
- Preference for projects creating or maintaining jobs
- Must demonstrate clear productivity or competitiveness improvement
Coverage
Typically 50% of eligible project costs, varies by stream
Timeline
Intake periods vary. Application to decision: 6-12 weeks.
Best for
AI projects with clear job creation or productivity impact in Ontario
SCALE.AI
Supply Chain and Logistics Excellence AI Supercluster
Canada's AI-powered supply chain supercluster. If your AI project touches supply chain, logistics, retail, or manufacturing, SCALE.AI offers funding, expertise, and connections. They fund collaborative projects between AI solution providers and industry partners.
Eligibility
- Project must involve AI application in supply chain or logistics
- Collaborative projects preferred (solution provider + industry partner)
- Canadian-based organizations
- Must demonstrate supply chain innovation or optimization
Coverage
Varies — typically covers a significant portion of collaborative project costs
Timeline
Periodic calls for proposals
Best for
AI automation for supply chain, logistics optimization, inventory management
Not sure which programs apply to you?
We assess your project against all available programs and recommend the best funding strategy — free of charge, as part of every Decode session.
Book your free funding assessmentFrequently asked questions
Can a small business really get government funding for AI?
Yes. Programs like IRAP are specifically designed for SMEs. In fact, smaller businesses often have an advantage — programs prioritize companies that need the funding to innovate, not enterprises that could self-fund. A 20-person company implementing its first AI system is exactly the profile these programs target.
How much of my AI project can be funded?
Typically 50-80% of eligible costs. IRAP often covers 50-80% of contractor and salary costs. SR&ED provides a 35% refundable tax credit. When programs are combined (and they can be), effective coverage can exceed 70% of total project investment.
Can I combine multiple programs?
Yes, with conditions. You cannot 'double dip' on the same costs, but you can apply different programs to different portions of a project. For example, IRAP funding for the development phase and SR&ED credits for the R&D component. We help structure projects to maximize total funding.
How long does it take to get approved?
IRAP: 4-8 weeks from application. FedDev Ontario: 6-12 weeks. SR&ED is retroactive — you claim it when filing taxes. We recommend starting applications early and beginning project work while awaiting approval (most programs allow this).
Does build9 help with the application process?
Yes. We help structure your AI project to align with program requirements, prepare technical descriptions that reviewers understand, and document your work in a way that satisfies audit requirements. We've seen too many good projects miss funding because the application didn't speak the program's language.
What if my project doesn't qualify for any programs?
Most custom AI implementation projects qualify for at least SR&ED tax credits. If your project is routine integration (plugging in an off-the-shelf tool), it may not qualify for R&D programs — but it might qualify for productivity or regional development programs. We assess eligibility before you invest time in applications.
Let's fund your AI project
Most of our clients qualify for at least one funding program. Book a Decode session and we'll assess your eligibility as part of the engagement.