AI and Artificial Intelligence Grants in Canada 2026
Canadian AI companies have access to over 100 active federal and provincial funding programs. Technology is one of the largest groups in our catalog of 658 active programs, with 173 carrying a technology, AI, software, or digital tag. The most important program is SR&ED, which provides a 35% refundable tax credit on AI R&D expenditures up to $6 million per year for Canadian-controlled private corporations (Budget 2025 raised this limit directly from $3M to $6M; the maximum annual credit is $2.1 million). IRAP provides direct cash subsidies year-round, and programs like Scale AI, the AI for Productivity Challenge, and Quebec's CDAEIA credit target applied AI commercialization and adoption. This list ranks the 10 most impactful programs and explains which fit which type of AI company.
By the numbers
Counted live from our catalog on October 4, 2026: of 658 active funding programs, 173 carry a technology, AI, software, or digital industry tag (173 ÷ 658 = 26%), and 22 carry the AI tag specifically. Eleven active programs name AI or artificial intelligence directly in their title, including Scale AI, RAII, the AI Compute Challenge, the AI for Productivity Challenge, and Quebec's CDAEIA credit. On the federal side, SR&ED refunds a 35% credit up to $2.1 million per year for a qualifying CCPC, and IRAP's typical award runs $75,000 to $1 million (median around $75,000) with a $10 million ceiling. Scale AI has drawn over $230 million in federal commitment since 2018 and co-invested in 100+ projects across Canada.
Computation: GrantCompass catalog snapshot (grants.json), programStatus = "active", industry-tag match on {technology, AI, software, digital}. Program figures: CRA SR&ED, NRC IRAP, and Scale AI public reporting.
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Who this list is for
SR&ED and IRAP are your core stack. SR&ED covers algorithm development, model training compute costs, and AI researcher wages at a 35% refundable credit. IRAP provides direct cash for the same project from a different budget line. Apply for both simultaneously — they are fully compatible.
Scale AI Supercluster and RAII both target companies past early R&D and into deployment. Scale AI focuses on AI in supply chains and logistics; RAII covers AI adoption in any sector for companies with TRL 7+ solutions. Both work at the $250K to $5M project scale, though RAII for a business is an interest-free repayable contribution rather than a grant, and Scale AI's Industry-Led Projects require a consortium and were paused until further notice in October 2026.
Quebec's CRIC tax credit provides 20–30% on R&D expenditures and stacks directly on federal SR&ED. Alberta's Innovation Employment Grant provides an 8%/20% incremental payroll credit. Both are entitlement programs — all qualifying corporations receive them with no competition against other applicants.
The Scale AI Acceleration Program (up to $50,000 per startup, paid to partner accelerators) and Mitacs Accelerate (rolling applications, ~$15K per intern) are both accessible to early-stage companies that lack the team bandwidth for major grant applications. Both accept rolling applications year-round.
IDEaS posts new AI-specific challenges year-round on CanadaBuys and provides up to $1.5 million per Competitive Project. The full five-component IDEaS pipeline can reach $6.75 million. Open to companies of any size; no minimum revenue or employee count required.
Find which AI programs match your company
Take the free 3-minute quiz to see your personalized match against 173 technology and AI funding programs in Canada. Results include SR&ED estimate, IRAP fit, and provincial credits.
Start the free quiz →Are AI grant applications open? Every federal AI program, checked October 4, 2026
Some are, many are not. As of October 4, 2026, the federal AI programs taking applications are IRAP (including its AI Assist stream), the Regional Artificial Intelligence Initiative at PrairiesCan, FedNor and CED Quebec, the AI Compute Challenge for data-centre builders, BDC's LIFT loans, Mitacs Accelerate and Protein Industries Canada's AI program for agri-food consortia. The AI Compute Access Fund, Scale AI's industry projects and every DIGITAL call are closed or paused. The national AI strategy released in June 2026 promised more money for several of these, but most of it has not opened as a new call yet.
| Program | Who it is for | Money | Status | Verdict |
|---|---|---|---|---|
| NRC IRAP AI Assist | Incorporated SMEs building generative AI or deep learning into their core products | An IRAP contribution; the typical federal record is $75,000 | Through an IRAP advisor; no deadline | The first call for an AI developer with a real technical problem to solve. |
| Regional Artificial Intelligence Initiative (RAII) | Businesses and non-profits commercializing or adopting AI, through the regional agency for their province; TRL 7 or higher | Businesses repay, interest-free (PrairiesCan $250,000 to $5 million in our catalogue; PacifiCan $500,000 to $3 million); non-profits can get non-repayable support | PrairiesCan: open, continuous to December 31, 2028. CED Quebec: accepting applications. PacifiCan: not accepting applications. ACOA: details to come. FedNor: applications assessed as they are received. FedDev Ontario: listed under past programs (not accepting) | The largest AI-adoption envelope, and it is a loan for a business. Check your own agency's page before you plan. |
| AI Compute Access Fund | Canadian for-profit AI developers with fewer than 500 staff and revenue or Series A financing | Two-thirds of Canadian cloud compute costs (half for non-Canadian), on $100,000 to $5 million of compute | Closed. The only call closed July 31, 2025; the June 2026 strategy announced $700 million more, with no new call posted | Prepare your compute plan now; do not build a budget on it until a call opens. |
| AI Compute Challenge | Companies, consortia and industry-academic partnerships building AI data centres or compute hardware | Up to $700 million in total, through the Strategic Response Fund | Applications accepted on an ongoing basis | Only for infrastructure builders. An AI startup buying compute is not the target. |
| BDC LIFT | Canadian businesses adopting AI or digital tools (at least $1 million in revenue) or buying robotics and other equipment (at least $5 million) | Loans of $25,000 to $5 million, with a preferential rate when the supplier is Canadian; a BDC plan is required | Launched April 24, 2026 | It is a loan, and it has the fewest gates of any adoption program here. |
| Industrial AI Readiness (NGen with IRAP) | Incorporated manufacturers with fewer than 500 employees and a reference from an IRAP advisor | Up to $15,000 back on an AI consultant's readiness study and implementation plan | Listed on ngen.ca; our catalogue notes final reports are due by the end of December 2026 | The cheapest first step for a manufacturer that wants to use AI. |
| AI for Productivity Challenge (NRC) | Industry and academic collaborators in agriculture, clean technology and manufacturing | Grant and contribution funding for collaborators, through NRC's National Program Office | Runs 2026 to 2033; you start by emailing the NRC team | A research partnership with NRC, not an application form. |
| Mitacs Accelerate | Companies and non-profits hosting a graduate student or postdoc on a research project | A $15,000 award per 4- or 6-month internship for a $7,500 partner contribution ($20,000 for $10,000 with a postdoc) | Year-round, through a Mitacs advisor | The cheapest way to add AI research talent. |
| Scale AI industry-led projects | Consortia applying AI in value chains | Negotiated per project | Paused until further notice | Do not plan on it for now. |
| Scale AI Acceleration | AI startups in one of Scale AI's accredited accelerator programs | Scale AI pays the accelerator up to $50,000 per supported startup | Through partner accelerators | The startup receives services; the cash goes to the accelerator. |
| DIGITAL (Global Innovation Cluster, BC) | Member consortia | Co-investment per call | Every call on its call-for-projects page is marked closed | Watch for the next call; nothing to apply to today. |
| Protein Industries Canada AI program (Global Innovation Cluster) | Consortia of two or more companies in plant-based food, feed and ingredients | Co-investment from a $30 million pool to March 31, 2028 | Expressions of interest accepted (solicited or unsolicited) | For agri-food AI consortia only. |
SR&ED is not in this table because nobody waits for a call to use it; a qualifying corporation claims it with its tax return every year. It stays the base of almost every AI company's funding (number 1 in the list below).
Sources, all read October 4, 2026: NRC (IRAP AI Assist; AI for Productivity Challenge); PrairiesCan, PacifiCan, CED, ACOA and FedNor RAII pages; ISED AI Compute Access Fund (modified June 24, 2026) and AI Compute Challenge pages; ISED, Canada's National AI Strategy: AI for All; BDC LIFT page and April 24, 2026 release; ngen.ca; mitacs.ca; scaleai.ca; digitalsupercluster.ca; proteinindustriescanada.ca (read October 5, 2026).Top 10 AI and Artificial Intelligence Grants in Canada
Scientific Research and Experimental Development (SR&ED) — CRA
SR&ED is the primary funding mechanism for AI R&D in Canada and should be the first program every AI company claims. Algorithm development, model architecture research, systematic experimentation to resolve technical uncertainty, and AI-specific infrastructure costs all qualify as eligible expenditures. Budget 2025 raised the enhanced-rate expenditure limit directly from $3M to $6M — the maximum annual enhanced credit for a CCPC is now $2.1 million. CRA accepts 90% of SR&ED claims as filed; the remaining 10% are modified or denied through review.
| Attribute | Value |
|---|---|
| Amount | 35% refundable ITC on first $6M (CCPCs); max $2.1M/yr |
| Intake | Ongoing — filed with annual corporate tax return |
| Difficulty | 4 / 5 (Hard) |
| Best stack | IRAP, Ontario OITC, Quebec CRIC, Alberta IEG |
Verdict: The best AI funding program for any CCPC doing documented R&D is SR&ED, because it is an entitlement — all qualifying expenditures receive the credit, regardless of competitive application ranking. An AI startup spending $1 million on eligible R&D can receive $350,000 back. The main cost is a SR&ED preparer (typically 3–5% of the claim); that fee is itself an eligible SR&ED expenditure.
Industrial Research Assistance Program (IRAP) — NRC
IRAP provides direct non-repayable cash subsidies to Canadian SMEs conducting R&D — including AI development. IRAP contributions cover wages for researchers and developers, contractor fees, and material costs, with no required matching on the contribution portion. Typical awards run $75,000 to $1 million (the median lands around $75,000), with a $10 million ceiling for major projects; individual awards range widely. IRAP explicitly allows co-claiming SR&ED on the same project — the key is that IRAP and SR&ED cover different expense dollars (not the same invoice).
| Attribute | Value |
|---|---|
| Amount | $75K–$1M typical (median ~$75K); up to $10M |
| Intake | Ongoing — no windows |
| Difficulty | 3 / 5 (Moderate) |
| Scope | National; technology sector explicitly in scope |
Verdict: The best direct-cash rolling program for an AI company with a defined R&D project is IRAP, because it supplements SR&ED without conflicting with it — a company claiming $500K in SR&ED can still receive an IRAP contribution on related costs not already covered by the SR&ED claim. Contact your regional Industrial Technology Advisor before applying; the ITA assessment is a prerequisite.
Scale AI Supercluster — Industry-Led Projects
Scale AI is Canada's federally supported AI supercluster, focused on applying AI to supply chains, logistics, retail, agriculture, and healthcare. Industry-Led Projects require a consortium of at least two Canadian companies — one of which must be an SME — plus a Canadian academic partner. Scale AI received over $230 million in federal funding commitment since 2018 and has co-invested in 100+ projects across Canada. Project funding amounts are negotiated individually; most approved projects receive between $1 million and $5 million. As of October 4, 2026, Scale AI says this program is paused until further notice.
| Attribute | Value |
|---|---|
| Amount | Varies; typically $1M–$5M (project-based) |
| Intake | Paused until further notice (October 2026) |
| Difficulty | 4 / 5 (Hard) |
| Best stack | SR&ED on eligible R&D components, IRAP on separate workstreams |
Regional Artificial Intelligence Initiative (RAII) — regional development agencies
RAII is a federally funded, regionally delivered program providing $250,000 to $5,000,000 for AI adoption and commercialization projects. Read the fine print on repayment: for a business, RAII is an interest-free repayable contribution covering up to 50% of eligible costs (repaid over five years starting one year after the project ends); only not-for-profit organizations receive non-repayable contributions, up to 90% of costs. RAII explicitly targets companies with deployment-ready AI solutions — the Technology Readiness Level (TRL) 7 minimum requirement means the solution must already be demonstrated in a relevant environment. Each regional agency runs its own intake: PrairiesCan accepts applications continuously until December 31, 2028, while PacifiCan was not accepting applications on October 4, 2026. The June 2026 national AI strategy commits $500 million more to RAII.
| Attribute | Value |
|---|---|
| Amount | $250K–$5M; interest-free repayable for business (non-repayable for non-profits) |
| Intake | PrairiesCan: continuous until December 31, 2028; other agencies vary |
| Difficulty | 4 / 5 (Hard) |
| Type | Interest-free repayable contribution for business; non-repayable for non-profits |
| Eligibility | Incorporated ≥ 2 years; TRL 7+ AI solution |
Verdict: The best large-envelope, continuous-intake non-dilutive program for AI companies with a validated commercial product is RAII, because $250K to $5M of interest-free capital with no annual competition window is structurally rare at this size. Treat it as low-cost growth capital, not a grant: a business repays the full amount over five years starting one year after the project ends. Do not apply with a prototype, because TRL 7 means the solution is already proven in a relevant operational environment.
Scale AI Acceleration Program
The Scale AI Acceleration Program pays Scale AI's accredited accelerators and incubators up to $50,000 per supported startup; it does not fund startups directly. An early-stage AI startup or SME benefits by joining one of those partner programs, which each run their own selection. Unlike Scale AI's Industry-Led Projects (which require large consortia), the Acceleration Program is designed for companies building applied AI products across any value chain.
| Attribute | Value |
|---|---|
| Amount | Up to $50,000 per startup, paid to the accelerator |
| Intake | Ongoing through certified accelerator partners |
| Difficulty | 2 / 5 (Easy) |
| Eligibility | Canadian AI startup or SME; must participate through Scale AI accelerator partner |
Innovation for Defence Excellence and Security (IDEaS) — DND
IDEaS funds AI innovations that address active Department of National Defence problem statements. DND regularly posts challenges targeting AI for surveillance, logistics, threat detection, autonomous systems, and natural language processing for military applications. Competitive Projects (Component 1b) fund up to $1.5 million per project; a company that progresses through all five IDEaS components can receive up to $6.75 million. New challenges appear year-round on CanadaBuys; there is no annual intake cycle. Approval rate is under 20%.
| Attribute | Value |
|---|---|
| Amount | Up to $1.5M (Component 1); up to $6.75M (full pipeline) |
| Intake | Ongoing — challenges posted year-round on CanadaBuys |
| Difficulty | 4 / 5 (Hard) |
| Eligibility | Any Canadian entity (company, university, individual); must address an active DND challenge |
Mitacs Accelerate
Mitacs Accelerate subsidizes graduate and postdoctoral researchers working on applied AI projects at Canadian companies. Each standard internship unit costs the partner $7,500 for a $15,000 research award; with a postdoctoral fellow the partner contributes $10,000 for a $20,000 award. Companies can stack multiple units for larger research programs. The Accelerate Entrepreneur stream removes the university-partnership requirement for qualifying startups. Mitacs applications are accepted year-round with an approval rate above 40%. IRAP and SR&ED can both be claimed on the same project alongside Mitacs.
| Attribute | Value |
|---|---|
| Amount | $15,000 award per unit (standard); $20,000 (postdoc) |
| Intake | Ongoing — year-round applications |
| Difficulty | 2 / 5 (Easy) |
| Best stack | IRAP (salary split), SR&ED (partner contribution is SR&ED-eligible) |
Quebec R&D Tax Credit (CRIC) — Revenu Québec
Quebec's CRIC (Research, Innovation and Commercialization) tax credit provides a 30% credit for small CCPCs and 20% for larger corporations on eligible R&D expenditures. CRIC stacks directly on federal SR&ED — a qualifying Quebec CCPC can combine a 35% federal SR&ED credit with a 30% provincial CRIC on the same wage expenditures (after accounting for the federal government assistance reduction). CRIC is an entitlement program filed with the Quebec corporate tax return; there is no competition. Montreal is one of Canada's three largest AI hubs, with companies including Element AI's successors, Mila spinouts, and over 100 AI-focused SMEs.
| Attribute | Value |
|---|---|
| Amount | 20–30% tax credit on eligible R&D expenditures |
| Intake | Ongoing — filed with Quebec corporate tax return |
| Difficulty | 4 / 5 (Hard) |
| Provinces | Quebec only |
Verdict: The best provincial tax credit for AI companies in Quebec is CRIC, because the combined federal SR&ED plus CRIC recovery can exceed 50% of eligible R&D wages — making Quebec one of the most financially advantageous jurisdictions globally for AI R&D. The complexity of filing both credits simultaneously warrants an SR&ED and Quebec tax specialist.
Alberta Innovation Employment Grant (IEG)
Alberta's Innovation Employment Grant provides a payroll credit to Alberta corporations investing in R&D, including AI development. The base rate is 8% on eligible R&D expenditures at or below the company's 2-year rolling average; the enhanced rate is 20% on incremental R&D above that average. Maximum eligible annual expenditures are $4 million. IEG is an entitlement credit — all qualifying Alberta corporations receive it without competing against other applicants. IEG stacks with federal SR&ED, reducing the SR&ED eligible expenditure base but producing higher combined recovery than either program alone.
| Attribute | Value |
|---|---|
| Amount | 8% base / 20% enhanced; max $4M eligible expenditures/yr |
| Intake | Ongoing — filed with Alberta corporate tax return |
| Difficulty | 4 / 5 (Hard) |
| Provinces | Alberta only (must incorporate and file taxes in Alberta) |
Digital Technology Supercluster (DIGITAL) — BC
DIGITAL is BC's federally backed supercluster funding AI and digital health projects up to $5 million per project. Companies must become DIGITAL members before applying, and projects require a consortium including at least one SME and one academic partner. DIGITAL has supported over 100 projects since 2018, with a focus on AI in precision health and sustainable infrastructure. Applications face high complexity (difficulty 5/5) and approval rates of 15–25%, but the project scale justifies the investment for companies with a strong consortium in place. When we checked on October 4, 2026, every call on DIGITAL's call-for-projects page, including Horizon AI and AI Skills & Adoption, was marked closed.
| Attribute | Value |
|---|---|
| Amount | Up to $5 million per project |
| Intake | All listed calls closed (October 4, 2026) |
| Difficulty | 5 / 5 (Very Hard) |
| Provinces | British Columbia (consortium may include other provinces) |
Verdict: The best large-project AI supercluster grant for BC-headquartered companies targeting precision health or sustainable tech AI is DIGITAL, because $5M project funding through a supercluster delivers both capital and consortium-building outcomes that IRAP and SR&ED alone cannot provide. Only pursue if you already have the academic and industry partners in place — assembling a consortium to fit an application consistently fails.
How to apply for AI grants in Canada
Here's what you need to know about the SR&ED + IRAP stack: most AI companies start with SR&ED because it is an entitlement credit — you do not compete against other applicants, and all qualifying expenditures receive the credit. IRAP then layers on top for the same project by funding different expense categories. The critical rule is that IRAP contributions reduce your SR&ED eligible expenditure base by the amount of government assistance received — so a $100,000 IRAP contribution on wages reduces your SR&ED qualifying wages by $100,000, reducing the SR&ED ITC by $35,000. Net result is still positive: $100,000 IRAP cash + $65,000 SR&ED savings from the remaining base exceeds SR&ED alone on the full $200,000 wage pool.
Here's what you need to know about supercluster programs (Scale AI, DIGITAL): these programs require genuine industry consortia — multiple companies with complementary capabilities and a shared commercial use case for the AI application. Applications assembled primarily to win funding, with partners recruited after the fact, are consistently rejected. Both programs conduct extensive due diligence on consortium relationships before approving projects. If you have a natural industry partner and a defined deployment target, supercluster programs offer capital at a scale no other AI-specific program can match.
Here's what you need to know about provincial AI credits (CRIC and Alberta IEG): both are entitlement credits with no application competition, but both require significant documentation of R&D activities performed in province. For Quebec's CRIC, eligible expenditures must relate to R&D carried out in Quebec — remote development contracts performed outside the province do not qualify. For Alberta IEG, the corporation must be incorporated in Alberta and file provincial taxes there. If your AI development team is distributed across provinces, the credit applies only to the activities performed in the qualifying province.
Here's what you need to know about timing your AI funding strategy: SR&ED, IRAP, and Mitacs Accelerate are all available year-round and should be running concurrently as your company's base funding stack. RAII projects (and Scale AI projects, when that program resumes) typically require 3–6 months from first contact to funding decision. DIGITAL consortia often take 6–12 months to assemble and submit. Plan supercluster applications 12 months ahead of when you need the capital; plan SR&ED and IRAP contemporaneously with R&D activity, not retrospectively.
AI adoption grants vs AI developer grants: which side are you on?
If you are putting someone else's AI to work in your business, you are on the adoption side, where the money is mostly loans, small reimbursements and repayable contributions. If you are building AI products or models, you are on the developer side, where SR&ED and IRAP do most of the work. SR&ED does not pay for adopting a tool; it pays for resolving a technical uncertainty.
Our catalogue holds 21 records built specifically for AI (RAII is listed once per agency and stream). By side: 8 adoption, 7 developer, 5 both, and 1 for compute infrastructure. Checked against the funders on October 4, 2026, 11 are active, 4 between intakes, 2 paused, 3 closed and 1 upcoming. Only 9 active ones put money or a tax credit in a company's hands; the other two active programs are an accelerator and a residency that provide services. On the adoption side alone, the only active programs that pay are NGen's $15,000 readiness reimbursement for manufacturers and NRC's AI for Productivity collaborations, plus RAII and BDC's LIFT loans for larger projects.
| Your situation | Start with | Then | Verdict |
|---|---|---|---|
| A manufacturer that wants to use AI | Industrial AI Readiness (up to $15,000 for a readiness study, with an IRAP advisor's reference) | RAII through your agency, or BDC LIFT, to pay for implementation | The adoption path with the most dedicated programs right now. |
| Any business adopting AI, $1 million+ in revenue ($5 million+ for equipment) | BDC LIFT (loans from $25,000, adviser plan included) | RAII, if you are past pilot stage (TRL 7, about two years of operations) | Expect loans, and budget for repayment. |
| A small business adopting AI, under $1 million in revenue | Your province's digital-adoption programs | The quiz below, which checks provincial and city programs | Few federal programs fit at this size; the provincial list matters most. |
| An early AI company building its own product | SR&ED (35% refundable for a Canadian-controlled private corporation) and IRAP, including AI Assist | Mitacs Accelerate for research talent | The core developer stack; incorporate first. |
| An AI company with large compute bills | SR&ED on eligible R&D, and a compute plan ready for the next AI Compute Access Fund call | RAII once your solution is in market | The compute fund is closed today; do not count on it in this year's budget. |
| A Quebec technology company | CRIC on R&D salaries, plus the CDAEIA if your products integrate AI | CED Quebec's RAII for commercialization | Quebec adds two provincial credits on top of SR&ED. |
| Building data centres or AI hardware | AI Compute Challenge, through a Strategic Response Fund consultation | Provincial co-funding, which ISED expects | Large-project territory only. |
Who has actually received federal AI funding?
The federal government's own records show three AI programs paying out: 202 IRAP AI Assist agreements since October 2024 (typically $75,000), 102 RAII agreements since December 2024 (businesses' median $430,000, repayable), and 44 AI Compute Access Fund agreements signed in February and March 2026 (median $971,000).
| Program | Agreements | Median (middle half) | What it tells you |
|---|---|---|---|
| IRAP AI Assist | 202 with 198 companies, October 2024 to June 2026 | $75,000 ($69,750 to $75,000) | A standard-sized project, not a large grant. The largest was $640,000. British Columbia (60), Quebec (41) and Alberta (36) lead. |
| Regional Artificial Intelligence Initiative | 102 with 100 recipients (84 businesses), December 2024 to June 2026 | $430,000 for businesses ($177,000 to $983,000) | FedDev Ontario signed 42 (FedDev's stream has since closed), ACOA 38, CED Quebec 18 and FedNor 4. The largest business agreement was $2 million. |
| AI Compute Access Fund | 44 with 44 companies, all signed February and March 2026 | $971,000 ($521,000 to $2.9 million) | $66.2 million of the $300 million fund in the first round. Half the agreements were $1 million or more; 21 went to Ontario companies, 8 to British Columbia. |
What the pattern says. An AI company's most likely federal cheque is a $75,000 IRAP project. RAII agreements are larger, but a business repays them. The compute fund's first round was concentrated: 44 companies shared $66.2 million, and the largest, $3.35 million, is about two-thirds of the $5 million compute ceiling.
What this sample cannot see. SR&ED is a tax credit, so it is not in these records. PrairiesCan and PacifiCan file their RAII agreements under general program names, so the RAII count covers Ontario, Quebec and Atlantic Canada only. IRAP AI Assist is counted from agreement titles that begin "AI Assist"; IRAP's other AI projects are not separable, and Ontario's low count may reflect titles rather than activity. The records do not say which agreements are repayable. The federal government publishes its grant agreements over $25,000, and some departments list smaller ones too; recent quarters arrive late. Amendments were collapsed into one row per agreement (47 amendment rows). Source: Proactive Disclosure of Grants and Contributions, open.canada.ca, read October 4 and 5, 2026; contains information licensed under the Open Government Licence – Canada.
Can individuals get an AI grant in Canada?
Rarely. Of the 21 AI-specific records in our catalogue, none lists an individual as an eligible applicant; 7 exclude individuals in writing and 9 require a corporation. Across all 50 records we tag for AI, 3 accept individuals.
The routes that do exist for a person rather than a company:
- Graduate students and postdocs: Mitacs Accelerate pays a $15,000 research award per internship unit, of which the intern receives at least $10,000. You apply with your professor and a partner organization, not on your own.
- Defence problem-solvers: IDEaS (number 6 in the list above) is one of the few federal innovation programs our catalogue lists as open to individuals.
- Founders: incorporate first. SR&ED's 35% refundable rate is for Canadian-controlled private corporations, and IRAP, AI Assist and RAII all fund incorporated businesses. A sole proprietor building an AI product is usually one incorporation away from the main programs.
Key questions about AI funding in Canada
Does AI development qualify for SR&ED? Yes, when it involves technological uncertainty and systematic investigation. Training a machine learning model to solve a novel technical problem qualifies. Fine-tuning an existing API for a commercial feature typically does not. The CRA SR&ED eligibility criteria require technological advancement — the work must advance the state of knowledge, not just apply known techniques. A SR&ED specialist can identify which portions of your AI development qualify; most AI companies are surprised by how much activity is eligible.
Can a pre-revenue AI startup claim SR&ED? Yes. CCPCs receive the 35% refundable credit regardless of profitability — the credit is paid as a cash refund if it exceeds taxes owed. Pre-revenue AI startups are among the most common SR&ED claimants in Canada. The only requirement is incorporation as a Canadian-controlled private corporation and qualifying R&D expenditures in the tax year.
What AI activities does IRAP cover? IRAP covers wages for AI researchers and developers (Canadian-resident employees), fees for Canadian contractors performing technical work, and material costs directly attributable to the R&D project. IRAP explicitly excludes capital equipment purchases, marketing, and sales activities. AI model deployment infrastructure that has a commercial purpose (serving production traffic) generally does not qualify; pre-production infrastructure for research and training does.
Is there a grant specifically for Canadian AI companies raising money? Not directly, but several programs provide non-dilutive capital that reduces the equity required. SR&ED refundable credits ($2.1M/yr maximum for CCPCs) provide working capital on a recurring basis, and IRAP adds direct project cash. RAII ($250K to $5M) is the largest single envelope, but for a business it is an interest-free repayable contribution rather than a grant, so treat it as debt you repay over five years, not free money. All of these reduce your burn rate without dilution; combine them strategically with equity to maximize ownership retention.
What is the difference between AI-development funding and AI-adoption funding? Development funding pays you to build or research AI: SR&ED, IRAP, Mitacs, the Scale AI Supercluster, and provincial R&D credits (Quebec CRIC, Alberta IEG) all reward the technical work of creating novel AI. Adoption funding pays you to put existing AI to work inside your business. On the adoption side the catalog carries the National Research Council's AI for Productivity Challenge, a 2026 to 2033 collaborative program for AI adoption in clean technology, agriculture, and manufacturing, NGen's Industrial AI Readiness reimbursement (up to $15,000 for manufacturers), RAII, and BDC's LIFT loans. Quebec's CDAEIA, which replaced the e-business credit in 2026, sits on the developer side: it rewards Quebec IT companies whose products integrate AI. Two larger programs, the AI Compute Access Fund (closed since July 31, 2025) and NGen's AI for Manufacturing (AI4M) Challenge (between intakes), are not accepting applications, so confirm the window before you build a plan around them. If you are deploying a vendor's model rather than building your own, start on the adoption side.
What is the best AI grant for a company in the Prairies? RAII is the highest-priority program for Prairie-based AI companies — PrairiesCan administers it regionally and Year-1 approvals show strong Prairie representation. Alberta companies can additionally claim IEG (8–20% payroll credit, entitlement). All national programs (SR&ED, IRAP, Mitacs, IDEaS) are available regardless of province.
Can a non-Canadian company access Canadian AI grants? No for most programs. SR&ED requires the claimant to be a Canadian tax-paying corporation. IRAP requires an incorporated Canadian SME. Scale AI and DIGITAL require Canadian company membership. Foreign companies can access some funding indirectly by establishing a Canadian subsidiary — but the subsidiary must have genuine Canadian operations, employees, and IP activity; a shell entity does not qualify.
What's Changed in 2026
- Canada's national AI strategy, AI for All (June 2026): ISED released the strategy in June 2026. For businesses it commits $500 million to expand the Regional Artificial Intelligence Initiative, $700 million more in affordable compute for SMEs through an expanded Compute Access Fund, BDC's $500 million LIFT financing program, a $500 million Canadian Tech Growth Fund for scaling AI companies, and a $200 million AI Missions Program starting with health. As of October 4, 2026, the RAII expansion and the new compute money had not opened as new calls (PacifiCan's RAII page says to check back soon). Source: ISED, Canada's National Artificial Intelligence Strategy: AI for All
- BDC launched LIFT (April 24, 2026): loans of $25,000 to $5 million for businesses with at least $1 million in revenue for AI and digital projects, or $5 million for robotics and other equipment, at a preferential rate when the supplier is Canadian. Source: BDC, LIFT
- The AI Compute Access Fund signed its first agreements (February and March 2026): 44 companies, $66.2 million in total, after the only call closed on July 31, 2025. ISED lists the fund as closed. See who received it. Source: ISED, AI Compute Access Fund; federal proactive disclosure
- SR&ED expenditure limit raised to $6M (Budget 2025): The enhanced-rate CCPC expenditure ceiling increased directly from $3M to $6M for taxation years beginning on or after December 16, 2024. The maximum enhanced annual credit is now $2.1 million per year, double the previous $1.05 million. CCPCs spending more than $3 million a year on eligible R&D gain the most, up to $1.05 million more a year. Source: Department of Finance Canada — Budget 2025 tax measures
- Quebec replaced its R&D credits with CRIC: Quebec's 2025-2026 budget (March 25, 2025) replaced six R&D and innovation credits with CRIC (Research, Innovation and Commercialization) for taxation years beginning after that date, expanded to include pre-commercialization expenditures not previously eligible. AI companies in Quebec should verify which of their activities fall under the expanded CRIC scope. Source: Ministère des Finances Québec — CRIC
- RAII continuous intake confirmed through 2028: PrairiesCan confirmed RAII accepts continuous applications with no quarterly windows through its December 31, 2028 program end date. First-year approvals funded 7 projects averaging $1.07M each from a $33.8M pool. Source: PrairiesCan — RAII
- Scale AI entered its second mandate (2024–2029): Scale AI secured renewed federal funding for its second 5-year mandate with a focus on expanding AI adoption in healthcare, agriculture, and financial services. The Acceleration Program continues through partner accelerators; Industry-Led Projects were paused until further notice when we checked on October 4, 2026. Source: Scale AI — scaleai.ca
- IDEaS AI-specific challenges increased in volume (2025–2026): DND posted significantly more AI-specific challenges in the 2025–2026 period — including challenges targeting large language model applications for defence intelligence analysis, autonomous systems for logistics, and AI-assisted threat detection. Companies should monitor CanadaBuys weekly for new AI challenge postings. Source: Department of National Defence — IDEaS
- DIGITAL's AI calls are closed: DIGITAL's call-for-projects page marks every call closed as of October 4, 2026, including Horizon AI (Technology Commercialization and Global Advantage streams) and AI Skills & Adoption, even though its homepage still advertises an open call. Companies must be DIGITAL members to access calls; subscribe to its newsletter for the next one. Source: DIGITAL — digitalsupercluster.ca