The short version
The program is the Regional Artificial Intelligence Initiative (RAII), part of AI for All, Canada's national AI strategy. It was expanded by $500 million on October 13, 2026, to $700 million in total, and it is delivered by the regional development agencies. For a business it is a repayable contribution: an interest-free loan for up to half of a project's eligible costs. Your company funds the other half.
It is a loan, not a grant. The agency decides, and nobody can promise approval. Every fact on this page was checked on the official agency pages on November 11, 2026. Programs change, so read your agency's page before you apply.
Pick your region
Each region has its own agency, amounts and dates.
| Region | Government share | Smallest total project | When to apply |
|---|---|---|---|
| British Columbia, PacifiCan | $200,000 to $5M | $400,000 | Business intake closes 12:00 pm Pacific, November 23, 2026. Next intake: small and medium businesses and non-profits, for projects starting after April 1, 2027 (date not posted yet). |
| Southern Ontario, FedDev Ontario | $125,000 to $5M | $250,000 | Open October 13, 2026 to January 19, 2027, 4:59 pm Eastern. Apply by November 24, 2026 if the project and its costs start before March 31, 2027. |
| Prairies (Alberta, Saskatchewan, Manitoba), PrairiesCan | $250,000 to $5M | $500,000 | Open continuously until December 31, 2030, or until the money is committed. |
Other regions have their own RAII pages and dates: ACOA for Atlantic Canada, CED for Quebec, FedNor for northern Ontario and CanNor for Yukon, the Northwest Territories and Nunavut.
The smallest total project is twice the smallest government share, because the loan covers up to half.
A free 30-minute call with Gurleen. You leave with a one-page project plan: what gets built, the total, your half, the government's half and the monthly repayment.
Book a call with GurleenHow the money works
- It is a loan, not a grant. The government calls it a repayable contribution. There is no interest.
- Half and half. The government lends up to 50% of eligible costs. Your company funds at least 50% from non-government sources and has to show it: bank statements, an unused line of credit or signed term sheets. Forecast revenue, receivables and SR&ED receivables do not count.
- Paid by claims. You pay each cost first, then claim back the government's share. Plan your cash for the gap between paying a bill and the claim coming back.
- Repayment comes later. It normally starts one year after the project is finished. In BC, PacifiCan sets monthly payments over five years, with no collateral and no penalty for paying early.
A worked example
| Example, round numbers | Amount |
|---|---|
| Readiness assessment and project plan | $15,000 |
| Custom system: build and integration | $160,000 |
| Computers, servers and software for the project | $45,000 |
| Staff training and AI rules | $30,000 |
| On-site travel | $10,000 |
| Total project | $260,000 |
| Government lends at 0% (50%) | $130,000 |
| Your company pays | $130,000 |
| Repayment | About $2,167 a month for 60 months, starting one year after the project ends |
This is an example, not a quote. A $260,000 project fits southern Ontario, where the smallest total project is $250,000. In BC the smallest is $400,000, and in the Prairies $500,000.
Where the cash goes, year by year
| When (example) | What happens | Your cash |
|---|---|---|
| During the project | You pay the $260,000 of costs as they come in, and claim back the government's $130,000 as each claim is approved. | $130,000 net, plus carrying each claim until it is paid |
| First year after the project ends | No payments. | $0 |
| Years 2 to 6 after the project ends | 60 monthly payments of about $2,167, or $26,000 a year. | $130,000 in total |
| Over about seven years | $260,000, with no interest |
Monthly payments over five years are PacifiCan's stated terms. The other agencies set repayment in each agreement.
What counts and what does not
Counts
- Direct labour on the project
- Contractor costs, and professional, advisory and technical service fees
- Equipment, machinery and supplies
- AI-related infrastructure, hardware, software and facility upgrades
- Essential travel
Does not count
- Off-the-shelf AI software bought without significant customization and integration
- Ongoing operating costs, such as routine software subscriptions
- Land and buildings
- Refinancing debt, and taxes
- The cost of preparing the application
The activities a project can include, from PacifiCan's list: AI readiness assessments, data modernization, predictive analytics, decision-support systems, automation and robotics, AI-enabled operational improvements, deployment of Canadian-made AI solutions, cybersecurity, responsible AI governance, employee awareness and training, workforce development and change management.
Costs can count from April 1, 2026 to March 31, 2031, including costs from up to 12 months before you apply. Anything you spend before approval is at your own risk.
The priority sectors include manufacturing and robotics, transportation, agriculture, energy and natural resources, and health and life sciences. Extra priority goes to made-in-Canada AI, Canadian suppliers, and data and IP kept in Canada. Aitoflo is a Canadian company, based in Vancouver.
Is this for you?
- Your company is incorporated and has operated in its region for at least 3 years (in the Prairies, at least 1 year).
- You have 5 to 500 full-time staff (in southern Ontario, fewer than 500; in the Prairies, at least 1).
- You have two years of externally prepared financial statements, plus current interim statements.
- You can fund your half from your own sources and show it, and carry costs until each claim is paid.
- The project is at least $250,000 in total in southern Ontario, $400,000 in BC or $500,000 in the Prairies.
- There is a real job for AI in your operation, such as quoting, order entry, scheduling, dispatch or quality records, and you want it built around your own systems, not bought off the shelf.
If most of these are true, the free call is worth 30 minutes of your time.
What you could build
Every idea below is an AI agent with a named job, only the access that job needs, and a person who approves its work. They are examples of projects that fit. Your plan starts from your own operation.
Manufacturing and food processing
- Quote Desk. Reads RFQ emails, drawings and spec sheets, pulls material, machine time and past job costs from your ERP, and drafts the quote. Your estimator approves every price before it goes out.
- Order Entry. Turns emailed purchase orders and phone orders into sales orders in your ERP, and checks part numbers, prices and ship dates. Your customer service lead approves anything that does not match.
- Schedule Keeper. Watches new orders, material arrivals and machine downtime, and proposes schedule changes. Your production manager approves them, then it tells affected customers their new date.
- Supplier Chaser. Checks open purchase orders every morning, asks suppliers to confirm or update their dates, and updates expected dates in the ERP. Your buyer sees the risks first.
- Quality Records Clerk. Puts together certificates of conformance, material certs, inspection results and lot records, or the day's food safety records, and flags gaps. Your quality manager signs off.
- After-hours Desk. A voice agent that answers dealer and customer calls about order status, parts and documents from your ERP, logs every call, and reaches the on-call person only for real emergencies.
Trucking and logistics
- Load Intake. Reads tenders and rate confirmations from the inbox, creates the load on your dispatch board and flags missing details. A dispatcher approves each load.
- Driver Check-ins. Calls or texts drivers at set points, in Punjabi, Hindi or English, and updates ETAs on the board. Exceptions go to a dispatcher.
- Billing Packets. Matches each rate confirmation, BOL, POD and receipt, checks them against each other and drafts the invoice in your accounting system. Your billing clerk approves it before it is sent.
- Compliance Tracker. Tracks licences, medicals, annual inspections, permits and carrier insurance certificates, and sends reminders well before they expire. Your safety manager decides on anything overdue.
- Customer Status Desk. Answers "where is my load?" calls and emails from your dispatch board and logs each one. Rates and claims go to a person.
- Detention Records. Timestamps arrival and departure from driver check-ins, and prepares detention and accessorial charges for a dispatcher to approve.
Pick one of these jobs. Gurleen will turn it into a one-page project plan, free.
Book a call with GurleenHow Aitoflo helps
| Step | What you get | What it costs you |
|---|---|---|
| 1. A call with Gurleen | 30 minutes, an eligibility check and a one-page project plan: what gets built, the total, your half, the government's half and the monthly repayment. | Free |
| 2. The vendor side of the application | A readiness assessment outline, a work plan with milestones, a budget by fiscal year and cost category, and responsible AI and data notes. | Free. Application preparation is never billed, and the program does not reimburse it. |
| 3. The project | The AI readiness assessment, the custom system (AI agents, voice agents, custom software and integrations), staff training, your AI rules and data policy, and first-year support during the project. | Part of the project budget, where it can be an eligible cost |
You apply in your company's name. We quote the project in writing after the call, and we never put a price on application help. Before you sign anything, read how we build: the phases, the guardrails and the documents you receive.
What you need to apply
| Document | What it is | Who prepares it |
|---|---|---|
| Application form | Your company, the project, its costs and benefits | You, with the project details from us |
| RAII Supplemental Form | Security, privacy, data governance and responsible AI | You sign it. We draft the technical answers from how the system is built: approval steps, access limits and action logs |
| Detailed budget worksheet | Costs by fiscal year and cost category | We prepare the project costs in the agency's categories; you add internal costs such as your own staff time |
| Business or project plan | The work plan, milestones and expected benefits, such as jobs and revenue growth | We write the work plan and milestones; you add the business case |
| Financial statements | Two years, externally prepared, plus current interim statements | Your accountant |
| Proof of funding | Bank statements, an unused line of credit or signed term sheets for your half | You and your bank |
If the application is not approved
- The plan is still yours. The one-page plan, the work plan and the budget we prepared are yours to keep. If you already ran the readiness assessment, its findings stand.
- The project can run smaller or in phases. Start with one job, without the loan, and add the rest later.
- There are later intakes. Southern Ontario takes applications until January 19, 2027. BC's next intake is for projects starting after April 1, 2027. PrairiesCan takes applications continuously until December 31, 2030.
- Other ways to pay are in our guide to paying for AI in BC, including BDC's LIFT loans for AI projects.