An additional $500 million is available through the expanded Regional Artificial Intelligence Initiative to boost AI adoption and bring Canadian-made AI solutions to market

OTTAWA, ON, Oct. 13, 2026 /CNW/ -- Canada helped pioneer modern artificial intelligence. The next step is to ensure Canadian businesses can put that technology to work and that Canadian AI companies can build, sell and scale their solutions.

Today, the Honourable Evan Solomon, Minister of Artificial Intelligence and Digital Innovation and Minister responsible for the Federal Economic Development Agency for Southern Ontario, announced that an additional $500 million over five years to expand and enhance the Regional Artificial Intelligence Initiative is now available. This investment brings total federal funding for the initiative to $700 million. The initiative is part of AI for All, Canada's National Artificial Intelligence Strategy, announced in June 2026, which aims to build trust, strengthen Canadian AI capabilities and sovereignty, and ensure all Canadians can use AI responsibly to build and benefit from it.

Delivered by Canada's regional development agencies (RDAs), the expanded initiative will help businesses and organizations responsibly adopt and integrate AI technologies to improve productivity, competitiveness and resilience. The support will focus primarily on sectors where Canada has strong expertise and economic potential, such as health and life sciences, energy and natural resources, transportation, agriculture, manufacturing and robotics, as well as other regional strengths and priorities.

The initiative will also help Canadian AI businesses gain customers, attract investment, and commercialize and scale Canadian-made products and services, while supporting regional organizations that connect businesses with the specialized support they need to adopt or commercialize AI technologies.

To start applying now, businesses and organizations should visit the Regional Artificial Intelligence Initiative to learn more and connect with the RDA serving their region.

This regionally responsive support will broaden AI adoption across Canada and help more Canadian AI firms scale and remain anchored here, along with their talent and economic benefits. These outcomes will strengthen productivity and growth while contributing to Canada's economic sovereignty.

Quotes

"The question is not whether AI will reshape our economy. It is whether Canada will capture the opportunity. The Regional Artificial Intelligence Initiative will help Canadian businesses adopt AI and Canadian AI firms scale from here, so that the technology, talent and economic value we create remain anchored in Canada and under Canadian control."

-  The Honourable Evan Solomon, Minister of Artificial Intelligence and Digital Innovation and Minister responsible for the Federal Economic Development Agency for Southern Ontario

"Canada has everything it needs to be a leader in the artificial intelligence economy: expertise, cutting-edge technologies, and innovative businesses. Our priority is to turn these strengths into a competitive advantage that will drive our long-term growth. In Quebec, we want to give SMEs the means to adopt and incorporate AI into their operations, and we want to provide our innovators with the tools to commercialize their solutions, expand their businesses, and capture new markets. This is how we strengthen our competitiveness and build a stronger, more resilient economy."

-  The Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions

"AI is changing how businesses compete, and we can't afford to see Atlantic Canada fall behind. That's why we're investing another $500 million across Canada to help businesses put AI to work and bring Canadian-made technologies to market. Here in Atlantic Canada, that responds to a clear message from the business leaders on our Atlantic Economic Panel, who delivered their report on how to grow our region's economy: businesses need support to turn these technologies into real growth. Over the coming months, we look forward to continuing investing in local businesses across the Atlantic provinces to create opportunities for our people here at home."

-  The Honourable Sean Fraser, Minister of Justice and Attorney General of Canada and Minister responsible for the Atlantic Canada Opportunities Agency

"As the world changes, we're ready to help the North change with it. The Regional Artificial Intelligence Initiative is helping Northerners meet the moment and explore how new technologies can offer unique solutions. By supporting AI adoption in the North, we help businesses and communities increase productivity and create benefits for the North and Canada as a whole."

-  The Honourable Rebecca Chartrand, Minister of Northern and Arctic Affairs and Minister responsible for the Canadian Northern Economic Development Agency

"Canadians are hard-working, dedicated people, but in order for regions like Northern Ontario to continue to succeed, we need technology to connect communities and to support workers with cutting-edge innovation. The $500 million expansion to the Regional Artificial Intelligence Initiative will help ensure the region's workers and businesses have the tools they need to thrive in the modern economy. These funds will support critical investments in AI-optimized tools to keep industries like mining and critical mineral development on the frontlines of innovation, and I look forward to seeing the many positive impacts this expansion will create for Northern Ontario and all of Canada."

-  The Honourable Patty Hajdu, Minister of Jobs and Families and Minister responsible for the Federal Economic Development Agency for Northern Ontario

"Across the Prairies, we have a proud history of using hard work, ingenuity, and grit to turn new ideas into industries that help drive Canada's economy. Artificial intelligence is the next opportunity to build on that legacy, helping farmers improve yields, manufacturers boost productivity, and energy businesses operate more efficiently. Through the Regional Artificial Intelligence Initiative, PrairiesCan is helping businesses across Alberta, Saskatchewan, and Manitoba put AI to work and bring Prairie-made innovations to market. That means more good jobs, stronger businesses, and greater prosperity here at home."

-  The Honourable Eleanor Olszewski, Minister of Emergency Management and Community Resilience and Minister responsible for Prairies Economic Development Canada

"British Columbia is home to world-leading AI talent, entrepreneurs and businesses. The expanded Regional Artificial Intelligence Initiative will help more AI companies commercialize and scale right here in Canada, while helping B.C. businesses adopt AI solutions. By building on B.C.'s strengths, we're creating good jobs, boosting productivity and building Canada strong."

-  The Honourable Gregor Robertson, Minister of Housing and Infrastructure and Minister responsible for Pacific Economic Development Canada

Quick Facts

• The Regional Artificial Intelligence Initiative helps businesses and organizations adopt artificial intelligence, supports the commercialization and scale-up of Canadian-made AI solutions, and strengthens regional AI ecosystems across Canada.
• The initiative will also support broader access to the benefits and opportunities of AI for Indigenous Peoples, youth, underrepresented groups and communities across Canada.
• Applications are being accepted in southern Ontario until January 19, 2027. Proposed projects with eligible costs before March 31, 2027, must be submitted by November 24, 2026.
• Since the launch of RAII in 2024, businesses and organizations have adopted or commercialized AI through 218 projects across Canada, creating or maintaining over 1,100 jobs. These projects have leveraged approximately $1.77 for every dollar approved.
• AI for All, Canada's National Artificial Intelligence Strategy, supports accelerated AI adoption among Canadian businesses, with a particular focus on SMEs, and includes measures to expand access to financing, AI expertise and secure computing infrastructure, including through the LIFT program, the Compute Access Fund and other business supports.

Associated Links

• Regional Artificial Intelligence Initiative
• Canada's National Artificial Intelligence Strategy AI for All
• Prime Minister Carney launches AI for All: Canada's national artificial intelligence strategy

Stay Connected: FedDev-Ontario.Canada.ca

Follow us on X, Instagram, LinkedIn and Facebook 

Subscribe to FedDev Ontario's Southern Ontario Spotlight newsletter, featuring economic development news and updates from across the region. Learn more about some of FedDev Ontario's recipients by visiting the impact stories page or view the new results page to see how the Agency is Building Southern Ontario Strong.

SOURCE Federal Economic Development Agency for Southern Ontario