AI
Grants

7 grant programs for your artificial intelligence projects in 2026

Blog Author
Author
MaryEve Racine
Published
September 23, 2026
Latest Update
October 6, 2026
Table of Contents

AI is reshaping the economy. Businesses increasingly recognize its value for boosting productivity, improving efficiency and staying competitive in a fast-moving world. However, developing and integrating AI projects can represent a significant financial investment for organizations, whether they are small businesses or leaders in their industry.

That's why several funding and grant programs are available to help finance your artificial intelligence projects. In 2026, the context is particularly favourable: in June, the federal government unveiled its new Canadian artificial intelligence strategy, “L'IA pour tous” (AI for all), and several organizations have launched or renewed funding envelopes dedicated to AI adoption by SMEs. In Quebec, the innovation tax credit system has been significantly simplified. These programs aim to support AI research and development, promote innovation and strengthen economic competitiveness.

7 programs and grants to fund artificial intelligence projects

1. Scale AI

Scale AI: Canada's global innovation cluster for artificial intelligence.

Scale AI is dedicated to driving industrial performance by leveraging AI technologies to build resilient, sustainable supply chains. As an industry-led consortium, Scale AI fosters economic growth, strengthens Canada's leadership in the global innovation race, supports the creation of world-class companies and highly skilled jobs, and accelerates the adoption of AI-powered technologies. In doing so, it contributes to an innovative, competitive, diversified and inclusive Canadian economy.

In practical terms, Scale AI reimburses up to 40% of eligible expenses for approved projects aimed at adopting or commercializing AI in value chains. It is a non-repayable grant, paid quarterly, with no minimum or maximum amount per project. Projects generally last 12 to 18 months.

Scale AI evaluates projects against four criteria:

  • Relevance: Is the project aligned with Scale AI's strategy of increasing industry productivity by using AI to improve value chains?
  • Collaboration: Does the project bring significant contributions and benefits to several value chain stakeholders, including at least one SME (fewer than 500 employees)?
  • Incrementality: How does the project differ from business as usual and from existing solutions? What intellectual property will be created?
  • Readiness: Has management approved the project? Has technical feasibility been validated (data assessment, proof of concept)? Does the consortium have the expertise needed to deliver the solution?

Note: the project must involve more than one participant, be carried out entirely in Canada and not already be funded by another government entity. You don't need to be a Scale AI member to submit a project, but membership is required to receive funding.

By making AI technologies more accessible, Scale AI acts as a true growth engine for the Canadian economy, propelling businesses to the forefront of digital innovation.

2. Quebec government support for AI

Quebec has significantly overhauled its innovation support measures. Since the 2025-2026 budget, several research and development tax credits have been merged into one, and the Ministère de l'Économie, de l'Innovation et de l'Énergie (MEIE) continues to issue targeted calls for projects. Here are the two most attractive levers for Quebec businesses investing in AI.

2.1 Tax credit for research, innovation and commercialization (CRIC)

The CRIC is a refundable tax credit that applies to taxation years beginning after March 25, 2025. Among other things, it replaces the former tax credit for pre-competitive research in a private partnership, the credit for fees paid to a research consortium and the R&D salary credit. It covers R&D activities carried out in Quebec, as well as certain related pre-commercialization activities, such as testing and validation leading to initial approval or certification, and product design.

Assistance provided:

  • 30% of eligible expenses above the exclusion threshold, up to $1 million.
  • 20% of eligible expenses above that $1 million.
  • The exclusion threshold is the greater of $50,000 or an amount calculated based on the time each employee spends on eligible activities.

Eligible expenses:

  • Salaries paid to employees carrying out R&D or pre-commercialization activities.
  • 50% of amounts paid to a subcontractor for work carried out in Quebec.
  • 50% of payments made to a public research centre, a research consortium or an eligible university entity.
  • Equipment acquisition costs (excluding buildings and land).

For an AI project, this could include, for example, the experimental development of a model that addresses a genuine technological uncertainty. Note: the same expense cannot be claimed under both the CRIC and another Quebec tax credit, such as the tax credit for investment and innovation (C3i). Claims are made using form RD-1029.8.CR, filed with the corporation's income tax return.

2.2 First Adopters call for projects

Offered under the MEIE's Innovation program, the First Adopters (Primo-adoptants) call for projects is ideal for young AI companies developing their first technology. It funds collaboration between a young innovative company and an established business, its first potential customer, to refine and test the solution under real-world conditions.

  • Maximum assistance: $75,000 per company, up to 60% of eligible expenses, for a project lasting up to 18 months.
  • First adopter's contribution: at least 20% of eligible expenses, in cash only.
  • Eligibility: a young Quebec company incorporated less than 5 years ago, at the pre-commercialization stage and supported by a recognized incubator or accelerator.
  • Next submission deadline: November 4, 2026, at 5 p.m.

These measures reflect Quebec's ambition to establish itself as a leader in artificial intelligence and technological innovation. By simplifying its tax system and supporting young companies from their first commercial steps, the government is fostering not only AI adoption, but also the creation of cutting-edge solutions that are transforming key sectors of the economy.

3. NGen, Next Generation Manufacturing Canada

NGen is an industry-led not-for-profit organization responsible for Canada's global innovation cluster for advanced manufacturing. It is one of five clusters supported by the federal government, alongside Scale AI.

Its mission? To accelerate the digital transformation of the manufacturing sector by leveraging technological innovation and the excellence of Canadian products. By creating high-value jobs and driving sustainable economic growth, NGen is shaping the future of manufacturing in Canada.

AI calls for projects relaunched in 2026

NGen once again has funds to deploy. On March 31, 2026, the organization announced $29.2 million in federal funding for 20 new projects to help manufacturers adopt Canadian AI solutions, under the Pan-Canadian Artificial Intelligence Strategy. With industry contributions, these projects represent a total investment of $79.5 million. In April 2026, NGen also announced nearly $25 million for 14 advanced manufacturing technology projects (robotics, digital twins, automation).

NGen programs operate through periodic calls for projects. In the “AI for Manufacturing” (AI4M) calls, projects had to bring together at least one manufacturer and one AI company, including at least one SME, and 40% of eligible costs were reimbursed. To be ready for the next call, we recommend that you:

  • Regularly check NGen's Funding page and subscribe to its newsletter (basic membership is free).
  • Study the projects funded in previous calls.
  • Build your consortium now (manufacturer, AI solution provider, partners) so you can apply quickly.

By integrating artificial intelligence and other disruptive innovations, NGen continues to play a key role in the evolution of advanced manufacturing in Canada. Keep an eye out for opportunities and position yourself now to be part of this industrial transformation!

4. Prompt

Prompt plays a strategic role in Quebec's innovation ecosystem. As a trustee organization of the Ministère de l'Économie, de l'Innovation et de l'Énergie (MEIE), it is one of Quebec's nine sectoral industrial research groups (RSRI) and specializes in information and digital technologies.

4.1 The AI component: PARTENAR-IA

On behalf of the MEIE, Prompt administers the Artificial Intelligence component (PARTENAR-IA), which targets consortiums of Quebec companies carrying out collaborative AI research projects. This component operates through calls for projects. In the most recent call, which closed on October 30, 2025, the terms were as follows:

  • Maximum assistance of $1.5 million per project, for up to 24 months.
  • 35% of eligible expenses for SMEs and large companies.
  • 50% of eligible expenses for startups, or for any company when expenses incurred by a public research centre account for at least 20% of the project.
  • Private contributions of at least 25%, with combined public assistance capped at 75%.

No new AI call had been announced at the time this article was written.

4.2 An option that's always open: Collaborative Innovation

For an AI project carried out with a university, a college technology transfer centre (CCTT) or a public research centre, the Collaborative Innovation program (formerly PSO) accepts applications on an ongoing basis:

  • A grant covering up to 40% of total project costs, and up to 80% when combined with other government assistance.
  • Maximum assistance of $500,000 per year, for up to 3 years ($1.5 million).
  • Private contributions of at least 20% of total project costs.

Eligibility criteria:

  • Mandatory collaboration: the project must bring together at least one Quebec company carrying out R&D or production in Quebec and at least one public research partner.
  • Local presence: applicant companies must be based in Quebec, and applications must be submitted in French.
  • Two project categories: SME projects (fewer than 250 employees) and large company projects.

Beyond funding, Prompt offers personalized support to maximize the success of submitted projects. This approach reflects its commitment to accelerating AI innovation in Quebec by supporting both emerging technology companies and established industry players.

With Prompt, Quebec businesses have a real lever for turning their ideas into concrete, competitive solutions.

5. Canada Economic Development for Quebec Regions (CED)

Canada Economic Development for Quebec Regions runs strategic programs designed to stimulate innovation, business growth and local economic development. Among its current programs, three offer particularly interesting opportunities for an AI project:

5.1 Regional Artificial Intelligence Initiative (RAII)

The RAII is a temporary initiative, in effect until March 31, 2031, that supports the development, commercialization and adoption of AI by SMEs. It pays particular attention to agriculture, clean technologies, life sciences and manufacturing.

  • For SMEs: interest-free repayable financial assistance of up to 50% of authorized costs.
  • For not-for-profit organizations: generally non-repayable assistance of up to 90% of authorized costs.
  • Eligible projects: strategic adoption or integration of AI, or demonstration and commercialization of AI solutions that have reached a technology readiness level of 6 or higher.
  • Good to know: costs are eligible from the date the application is submitted. Projects that include cybersecurity measures may be prioritized.

In July 2026, CED announced nearly $13.9 million in contributions to 63 Quebec organizations under this initiative.

5.2 Support for economically vulnerable RCMs

This program offers more flexible terms to businesses and organizations in eight targeted regional county municipalities (RCMs) that want to start up, adopt technologies, increase productivity or expand:

  • Financial assistance covering up to 75% of authorized costs for SMEs.
  • Generally repayable, interest-free and with no collateral required.
  • Repayments begin two years after the end of the project.
  • Up to 90% of authorized costs, as non-repayable assistance, for not-for-profit organizations.

The program targets eight specific RCMs: Golfe-du-Saint-Laurent, Avignon, La Haute-Gaspésie, Rocher-Percé, La Tuque, Kativik Regional Government, Pontiac and La Vallée-de-la-Gatineau.

This initiative is a unique opportunity for businesses in these regions, making it easier to adopt advanced technologies such as AI.

5.3 Business Expansion and Productivity (component 1 of the REGI program)

This financial assistance aims to stimulate a company's innovation and growth at different stages of its development by funding strategic projects such as:

  • Assessing, adapting or adopting new technologies and acquiring production equipment.
  • Deploying digital infrastructure.
  • Commercialization and market development.
  • Optimizing business management, for example by implementing an enterprise resource planning (ERP) system.

For SMEs, assistance can generally reach 50% of authorized costs, in the form of an interest-free repayable contribution with repayments beginning two years after the end of the project. Priority sectors include manufacturing, food processing, information technology and life sciences, with possible openings for other industries.

Evaluation criteria: the project's expected results, the company's viability, its technical and financial management capacity, the contribution of financial or professional partners, and the level of risk.

Through these programs, Canada Economic Development actively supports the innovation and modernization of Quebec businesses. Whether you're a fast-growing SME or an organization looking to energize its region, this assistance is a strategic opportunity to invest in the future and accelerate your digital transformation.

6. NRC IRAP (National Research Council Canada)

The National Research Council Canada Industrial Research Assistance Program (NRC IRAP) is a key player in innovation support for Canadian small and medium-sized enterprises (SMEs). Its comprehensive approach combines funding, technical expertise and personalized support to help businesses develop, commercialize and deploy their innovations, including AI-based products and services.

A comprehensive service offering:

  • Non-repayable financial support, tailored to the needs and size of the project.
  • Specialized research and development (R&D) advice from a network of industrial technology advisors.
  • Access to a network of business and innovation experts.
  • Support for hiring young talent and guidance towards commercialization.

With this approach focused on value creation, strategic partnerships and technical excellence, NRC IRAP enables SMEs to integrate effectively into Canada's innovation ecosystem and accelerate their growth.

To explore the opportunities offered by NRC IRAP, a senior executive of the company can call the program's toll-free line at 1-877-994-4727. The bilingual contact centre first checks that the company meets the minimum requirements, then refers it to an advisor who will help identify the solutions best suited to its needs. Note: funding depends on the availability of funds, and working with an advisor does not guarantee a contribution.

7. BDC: strategic financing for AI adoption by SMEs

The Business Development Bank of Canada (BDC) has established itself as a key partner in the adoption of digital technologies by Canadian SMEs, with a particular focus on artificial intelligence. Unlike the other programs on this list, BDC offers financing in the form of loans and advisory services rather than grants, making it an excellent complement to non-repayable assistance.

LIFT: a $500 million program to take action

Launched in April 2026, LIFT takes over from the From Data to AI program featured in the previous version of this article. With a $500 million envelope, it aims to help more than 1,000 SMEs adopt AI by combining advisory services at preferential rates with flexible loans. It has two streams:

  • Digital transformation and AI: for businesses with at least $1 million in annual revenue, in all sectors. A digital or AI plan prepared with BDC Advisory Services is required; financing then supports its implementation (data infrastructure, ERP/CRM, AI solutions, cybersecurity).
  • Productivity and advanced equipment: for businesses with at least $5 million in annual revenue in certain sectors (manufacturing, transportation and warehousing, wholesale trade, construction, agriculture, mining, etc.), to finance robotics, automation and advanced equipment.
  • Amounts: loans from $25,000 to $2 million for software AI projects, and up to $5 million for physical AI projects (robotics, automation).
  • Canadian content: the best rates are reserved for projects that use Canadian suppliers, software or integrators.

Businesses that don't meet LIFT's criteria can also look into the Technology Equipment Loan on BDC's website, which finances software, cloud solutions and artificial intelligence, among other things.

Make the most of available grants to fund your AI transformation

The ecosystem of grants and funding put in place by the federal and provincial governments reflects a clear commitment to driving technological innovation in Quebec and across Canada. While this list is not exhaustive, these programs, which cover a wide range of sectors and projects, are strategic levers for integrating artificial intelligence into businesses.

However, it's important to note that these funding opportunities are not permanent. Programs evolve according to allocated budgets, government economic priorities and political cycles. Waiting too long could mean missing out on unique funding opportunities for your digital transformation.

And this is only the beginning. Unveiled in June 2026, the new Canadian artificial intelligence strategy, “L'IA pour tous” (AI for all), aims to ensure that AI strengthens our economy, improves public services and supports Canadian businesses. Its implementation is expected to lead to new programs and calls for projects in the coming months, for both businesses and public organizations. Organizations that have already identified their projects and structured their applications will be best positioned to benefit.

Airudi works in partnership with government to help public and private organizations take full advantage of the programs available to fund their artificial intelligence ambitions. We support you in identifying the most relevant programs, preparing your applications and maximizing your chances of securing funding. For a personalized analysis of the opportunities that fit your project, contact us today.

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