Regional Artificial Intelligence Initiative (RAII)

Description

The funding will support eligible businesses to take their AI projects and technologies from the lab to the marketplace. Funding is also available to not for profits organizations supporting businesses to develop, demonstrate and commercialize their AI applications and solutions.

Artificial intelligence (AI) is a powerful tool that can help businesses across Canada compete and grow in a global economy. This rapidly evolving technology has the potential to improve how businesses operate, increase productivity and bring benefits to Canadians. As countries around the world race to develop and use AI, Canada is already a leader in this space.

To stay at the forefront of this technology, the Government of Canada announced $200 million for AI-powered businesses. This funding, delivered by Canada’s regional development agencies (RDAs) is available in all regions to help bring new AI technologies to market and speed-up AI adoption in critical sectors such as agriculture, clean technology, healthcare and manufacturing.

The RAII is part of Canada’s budget 2024 commitment to secure Canada’s AI advantage. RAII advances PrairiesCan’s strategic priorities.

Program objective

The RAII will help marketplace adoption, supporting the responsible development and use of AI, in two key areas:

• AI productization and commercialization will help AI SMEs in the start-up and scale-up phases to turn their ideas into real world solutions, with financing aimed at providing support to secure growth capital, hire the right people, manage data, and navigate the AI marketplace.
• Adoption of AI across priority sectors. This will help Canadian businesses enhance productivity, growth, and competitiveness. Support will focus on helping SMEs to integrating AI into business operations, implement AI strategies and find workers with the right skills.

Available assistance

PrairiesCan contributions must range between $250,000 to $5 million per project over a maximum of 3 years.

Eligible businesses can receive interest-free repayable funding for up to 50% of eligible costs.

Eligible not-for-profit organizations can receive non-repayable funding for up to 90% of eligible costs. Preference will however be given to projects that leverage support from other funding sources. Eligible not-for-profit organizations proposing to undertake commercial projects will normally receive repayable funding.

Government funding (from all three levels of governments) is limited to up to 50% eligible capital costs and 75% of other eligible costs for businesses or commercial projects.

Organizations are limited to one RAII project approval per calendar year.

2. Who is eligible

Check if you meet the criteria to apply.

Incorporated business eligibility checklist

For-profit businesses must meet all the following criteria to be eligible for this program.

• You’re a for-profit business incorporated to conduct business in Canada
• You employ at least one full-time equivalent (FTE)
• You’ve been in operation for a minimum of two years
• You have staffed operating facilities in the prairie provinces
• You are commercializing AI technologies (at above technology readiness level 7 (as defined by Innovation, Science and Economic Development Canada) or adopting AI based solutions (preference may be given to Canadian AI solutions).
• You have confirmed funding from all other sources including government and non-government
• You are a legal entity capable of entering into legally binding agreements

Preference may be given to small and medium-sized enterprises (SMEs) with less than 500 full-time employees.

Indigenous applicants

Indigenous-led organizations and businesses are strongly encouraged to apply. Please contact PrairiesCan for assistance with the application process by contacting us directly at one of our regional offices by calling 1-888-338-9378.

Not-for-profit organization eligibility checklist

Not-for-profit* organizations must meet all the following criteria to be eligible for this initiative.

• You assist AI businesses, innovators, or entrepreneurs in the prairies by supporting start-up development, growth, productivity enhancement, technology commercialization, technology adoption, or export and investment attraction.
• You are a legal entity capable of entering into legally binding agreements.
• You have an operating presence in the Prairies.

*Not-for-profit organizations include post-secondary educational institutions, business accelerator and incubators, angel networks, social enterprises, a group of eligible recipients such as an industry association or consortium, a municipality and other levels of government.

Indigenous applicants

Indigenous-led organizations and businesses are strongly encouraged to apply. Please contact PrairiesCan for assistance with the application process by contacting us directly at one of our regional offices by calling 1-888-338-9378.

Eligible activities

An eligible project may involve a range of activities to commercialize and/or adopt AI technologies:

1. Technology commercialization, which includes:
   • Showcasing and commercializing Canadian-made AI technologies and solutions. This includes market diagnostics, development, customization of AI technology for broader (off-the-shelf) use, production expansion, supply chain integration and other activities aimed at bringing new AI technologies and solutions to market in the near term.
   • Building and growing high-performance teams within start-ups and scale-ups developing AI technologies and AI-driven solutions. This includes adopting best management practices, developing team capacity and talent, and fostering a culture of innovation and entrepreneurship.
   • Strengthening the ecosystem to support start-ups commercializing AI solutions, including top talent attraction activities, provision of business supports, technology demonstration or supplier showcase events, and/or projects aimed at improving access to funding.
2. Technology adoption, which includes:
   • Strategically adopting/integrating AI technologies and solutions to drive innovation, growth, and productivity. For example, leveraging AI for complex tasks such as autonomous driving, supply chain optimization, predictive maintenance, process optimization, customer retention and expansion, fraud or threat detection.
   • Re-engineering processes and developing capacity for AI adoption such as initiatives to enhance data collection, quality and analysis (e.g., data informed decision making), improve product and service outcomes through AI (e.g., better user/customer experience), strengthen data governance and security measures (e.g., improved business operations and risk management).
   • Assisting SMEs in adopting/integrating AI including advisory services such as business readiness and capacity building support, talent attraction and retention activities, technology testbed or demonstration activities, and/or supports tailored to SME AI adoption needs.

Your project must also have a focus in at least one of the following priority areas:

• Advanced manufacturing – Developing and adopting innovative technologies to:
  • Create new products
  • Enhance processes
  • Establish more cost-effective ways of working
• Clean resources – Transitioning from the old resource economy into a new resource economy. It’s where innovation drives economic and environmental competitiveness in the energy, mining and forestry sectors. It leverages Canada’s natural resources advantage to transition to a low-carbon economy.
• Clean technology – This refers to any process, product or service that reduces environmental harm to:
  • Control costs
  • Meet new regulations
  • Improve global competitiveness
  • Reduce harm, to climate, water, land, and air
• Digital industries – Includes companies operating in information and communications technologies, digital and interactive media, and content industries.
• Health/bio-sciences – Includes pharmaceutical development, medical device and biomedical innovations, digital health solutions, precision health, and disruptive technologies including AI, big-data analytics, 3-D printing, robotics, and nanotechnologies.
• Natural resources value-added processing – Includes processing natural resources in the energy, mineral, or forestry sectors to add value to raw materials.
• Value-added agriculture – A complex and interdependent sector that includes agriculture, fisheries, and aquaculture, and food and beverage processing.
• Inclusiveness – Supporting under-represented groups such as Indigenous peoples, women, youth (between ages 15 and 34) and other under-represented groups.

Note: preference will be given to proposals with a demonstrated focus on:

• Critical minerals processing - companies and service providers that process or create value added materials and/or products from critical minerals such as advanced batteries, permanent magnets, solar panels, wind turbines, small modular reactors, defense and security technologies, semiconductors and consumer electronics.
• Food and ingredients processing - businesses producing plant-based food and ingredients
• Zero emission heavy equipment vehicles - manufacturers of urban and intercity buses, fire trucks, motorhomes, recreational vehicles, trailers, mobile agricultural, construction and mining equipment, and their associated suppliers. Related technologies include battery electric and hydrogen fuel cell drives, electrification of ancillary systems, material light weighting and others.

Eligible costs

Eligible costs under the program are incremental, reasonable and essential to carrying out the eligible project activities. Eligible costs can include the following:

• labour costs (e.g. wages and benefits)
• capital costs (e.g. purchase of machinery or equipment)
• management fees
• consultancy fees (e.g. professional, advisory and technical services)
• costs related to intellectual property protection
• preproduction activities (e.g. technological development and commercial demonstrations)
• subcontracting costs
• production and distribution of promotional material and management tools
• maintenance costs
• costs related to specialized services, such as testing services, research and development services, technical or innovation services, sector development strategies in all markets, and business networking

Costs may be eligible on a retroactive basis up to a 12-month period prior to the receipt of a signed funding application, but no earlier than April 16, 2024.

Ineligible costs and activities

Costs and activities that are deemed unreasonable, non-incremental, and/or not directly related to the project are ineligible for funding. Ineligible costs and activities can include, but are not limited to, the following:

• basic and applied R&D (technology readiness levels 1-6)
• land acquisition and goodwill
• salary bonuses and dividend payments
• entertainment expenses
• refinancing of existing debts
• amortization or depreciation of assets
• purchase of any assets for more than their fair market value
• lobbying activities
• donations, dues, and membership fees

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