Updated November 2026 · Verified against Federal Economic Development Agency for Southern Ontario (FedDev Ontario) guidelines
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FedDev Ontario Regional Artificial Intelligence Initiative (RAII) for Southern Ontario Organizations

Federal Economic Development Agency for Southern Ontario (FedDev Ontario)
Maximum Funding
$125K to $10M by stream
January 19, 2027 at 4:59 p.m. EST (apply by November 24, 2026 if the project ...
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Difficulty
Hard
Payment
Reimbursement
Trend
New Program
First-Timers
—
Co-Funding
90%
FedDev Ontario Regional Artificial Intelligence Initiative (RAII) for Southern Ontario Organizations provides $125K to $10M by stream. The non-repayable side of FedDev Ontario's Regional Artificial Intelligence Initiative funds established southern Ontario organizations up to 90% of project costs. The program covers up to 90% of eligible costs. The deadline is January 19, 2027 at 4:59 p.m. EST (apply by November 24, 2026 if the project and costs start before March 31, 2027).
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Eligibility & Details

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Program Description

The non-repayable side of FedDev Ontario's Regional Artificial Intelligence Initiative funds established southern Ontario organizations up to 90% of project costs. The AI Adoption stream ($125,000 to $5 million) helps incorporated not-for-profits, charities, First Nations, Metis or Inuit not-for-profits and municipal governments integrate AI into their own operations; the AI Ecosystem stream ($125,000 to $10 million) funds incorporated not-for-profits that help southern Ontario businesses adopt, commercialize and scale AI. Applicants need at least 5 FTEs and $1 million in annual revenue or operating expenses. Applications close January 19, 2027 (November 24, 2026 for projects starting before March 31, 2027).

Eligibility Requirements

  • Located and operating in southern Ontario at the time of application
  • AI Adoption stream: an incorporated not-for-profit organization (including charities), a First Nations, Metis or Inuit not-for-profit organization, or a municipal government
  • AI Adoption stream: annual revenue or operating expenses of at least $1 million, at least 3 years of operations as a legal entity, and at least 5 FTE employees
  • AI Ecosystem stream: an incorporated not-for-profit organization or a First Nations, Metis or Inuit not-for-profit organization, with at least 5 FTEs and $1 million in annual revenue or operating expenses
  • AI Ecosystem stream: a strong track record of serving multiple businesses or ecosystem participants in southern Ontario, the capacity to lead a multi-stakeholder project, and an IP policy
  • Demonstrate a commitment to the responsible development and use of AI and not infringe IP rights
  • Apply to one stream only; an organization cannot be funded at the same time to adopt AI internally and to deliver an ecosystem project
  • FedDev says smaller-scale, volunteer-based or community-focused organizations are not the intended recipients
Provinces
Industries
AI Technology Healthcare Life Sciences Energy Natural Resources +2 more
Business Stage
Growth Expansion Established

Quick Assessment

Difficulty
Hard
Competition
High
First-Timer
Not rated

Funding Details

Amount
$125K to $10M by streamNon-repayable. AI Adoption stream: $125,000 to $5 million per project. AI Ecosystem stream: $125,000 to $10 million per project. FedDev Ontario covers up to 90% of costs and the applicant and other sources at least 10%; preference may go to projects where FedDev's share is 50% or less.
Type
Grant
Level
Federal
Co-Funding
Up to 90% of eligible costs
Deadline
January 19, 2027 at 4:59 p.m. EST (apply by November 24, 2026 if the project and costs start before March 31, 2027)

Program Scorecard

Competition, effort, and approval at a glance

Competition
High
Deadline
Jan 19, 2027
Approval
Varies
Accessibility
2/5

Difficult — significant preparation needed

Competition
4/5

High competition — many applicants

Difficulty
4/5

Complex — detailed documentation needed

Processing Time
Budget Trend
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How to Win

Insider tips, common pitfalls, and what successful applicants look like

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Insider Tip

Check the size floor first: 5 FTEs and $1 million in annual revenue or operating expenses, and three years as a legal entity for adoption.

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Rejection Pitfalls 7

  • Under 5 FTEs or under $1 million in annual revenue or operating expenses
+6 more pitfalls
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Success Profile

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Evaluation Criteria

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What's in this Playbook

Everything you need to win RAII

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Application Playbook

Step-by-step process, required documents, and expenses

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Application Steps

1 Check the size floor At least 5 FTEs and $1 million in annual revenue or operating expenses; adoption also needs 3 years as a legal entity.

Required Documents 10

✓ Application for Funding (Not-for-Profit Applicants), a fillable PDF completed in Adobe Acrobat Reader on a computer
✓ RAII Supplemental Form, attached even if every answer is no

Eligible Expenses 9

Ineligible Expenses 6

Intake Periods

Deadline Notes

Ineligible Organizations

Premium The full guide for this program also covers:
  • 4 more application steps
  • 8 more required documents
  • 9 eligible expenses
  • 6 ineligible expenses
  • Intake periods
  • Deadline notes
  • Ineligible organizations

Funding Stack Strategy

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Combined Funding Potential See your total funding potential

Clawback Risk

Low Risk

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How RAII Compares

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Program Amount Difficulty Payment Deadline
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Frequently Asked Questions

Quick answers to the questions founders most often ask about RAII

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Is this funding repayable?
No. For eligible organizations FedDev Ontario's RAII contribution is non-repayable, covering up to 90% of project costs.
Who can apply?
Southern Ontario incorporated not-for-profits, including charities, and First Nations, Metis or Inuit not-for-profits; municipal governments can also apply to the AI Adoption stream. All need at least 5 FTEs and $1 million in annual revenue or operating expenses.
How much is available?
$125,000 to $5 million per project in the AI Adoption stream and $125,000 to $10 million in the AI Ecosystem stream.
Can a small community group apply?
FedDev says smaller-scale, volunteer-based or community-focused organizations are not the intended recipients of RAII.
When is the deadline?
January 19, 2027 at 4:59 p.m. EST, or November 24, 2026 if the project and costs start before March 31, 2027.

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