Canada’s federal government is adding C$500 million over five years to the Regional Artificial Intelligence Initiative, expanding a program that helps businesses and organizations adopt AI and bring AI technologies to market.
AI Minister Evan Solomon announced the funding in Ottawa on Tuesday, fulfilling a commitment in the National AI Strategy. The additional investment brings the initiative’s total funding to C$700 million and will be delivered through Canada’s seven regional development agencies.
The expansion targets both sides of the AI economy: Canadian companies developing technology for commercial use and organizations seeking to incorporate it into their operations. Priority industries include health and life sciences, energy and resource development, transportation, agriculture, manufacturing, and robotics—areas identified as having substantial Canadian expertise and economic potential.
The Regional Artificial Intelligence Initiative, known as RAII, was launched under the previous Liberal government with an initial emphasis on small and medium-sized businesses. Its scope has since widened beyond direct support for individual companies to include broader adoption efforts and organizations that help develop regional technology ecosystems.
That broader approach is already reflected in funding distributed through agencies such as PrairiesCan and PacificCan. Recipients have included Saskatchewan technology incubator Co.Labs and British Columbia’s provincial health authority. These examples illustrate how the program can reach organizations supporting startups as well as institutions exploring uses for AI in service delivery.
Businesses and other prospective applicants will need to consult the regional development agency serving their area. Application opening dates and deadlines differ across the seven regions, rather than following a single nationwide intake schedule. The announcement establishes a five-year funding horizon, but does not set out a uniform application window for all participants.
The investment comes as AI use among Canadian businesses is increasing. Adoption rose from six percent in 2024 to more than 19 percent in 2026. That growth has not eliminated gaps in AI literacy, workplace training or trust, all of which can affect whether organizations move from experimenting with software to using it consistently in day-to-day operations.
Adoption and commercialization also involve different technical challenges. An organization introducing AI into an existing workflow may need to prepare its data, connect systems, train staff and assess performance. A company selling an AI product must additionally establish that the technology works reliably for customers and can be supported beyond an initial demonstration. Funding for adoption and commercialization addresses related, but distinct, stages of deployment.
Solomon framed the expansion as an effort to retain Canadian technology, talent and economic value while helping domestic AI companies grow. The regional delivery model remains central to that effort, with businesses and organizations accessing support through agencies responsible for their respective parts of the country.