News/Funding announced

Ottawa adds $500 million to regional AI adoption funding for Ontario businesses

FedDev Ontario announced an additional $500 million over five years for AI adoption grants, bringing total federal funding to $700 million. Southern Ontario applications close January 19, 2027.

Govgrant newsroomNovember 1, 2026 · 1 min read

Total federal funding: $700 million over five years
New funding announced: $500 million over five years
Program: Regional Artificial Intelligence Initiative
Application deadline (southern Ontario): January 19, 2027
Early project deadline: November 24, 2026 (for projects with eligible costs before March 31, 2027)
Delivered by: FedDev Ontario

What was announced

FedDev Ontario has committed an additional $500 million over five years to the Regional Artificial Intelligence Initiative. This new funding raises the total federal commitment to $700 million, substantially expanding support for Canadian businesses looking to integrate artificial intelligence into their operations.

Who can apply

Businesses operating in southern Ontario are eligible to apply for this funding. The source does not specify company size requirements, revenue thresholds, or other eligibility criteria beyond geographic location.

Key dates and how to apply

Southern Ontario businesses have until January 19, 2027 to submit applications. However, a separate deadline applies to projects with eligible costs incurred before March 31, 2027: those applications must be submitted by November 24, 2026. Interested businesses should contact FedDev Ontario directly, as the source does not provide information about cost-sharing requirements, maximum grant amounts, or other program specifics.

What businesses should do next

Businesses considering an AI adoption project should reach out to FedDev Ontario before developing their budget or finalizing project plans. The source notes that cost-share and maximum funding amounts have not been disclosed, making it essential to confirm these details with program administrators before committing resources to an application.

Frequently asked questions

What types of AI projects are eligible for funding?

The source does not specify which types of AI adoption projects are eligible. Contact FedDev Ontario for details on project scope and allowable costs.

Is there a maximum grant amount or required cost-share?

The source states that no cost-share or maximum amounts are given in the announcement. Call FedDev Ontario to learn these details before budgeting your project.

Are businesses outside southern Ontario eligible?

The source specifies that applications for southern Ontario are accepted until January 19, 2027. It does not address eligibility or timelines for other regions of Ontario or Canada.

Based on reporting by HeitechSoftRead the original ↗