Does your AI project qualify for RAII funding?
FedDev Ontario's Regional Artificial Intelligence Initiative funds AI projects in southern Ontario: interest-free funding of up to 50% for businesses, and non-repayable funding of up to 90% for not-for-profits and municipalities. Work through the checklist for your organization below, or download it.
Early deadline
November 24, 2026
If your project and eligible costs start before March 31, 2027.
Final deadline
January 19, 2027
4:59 p.m. EST, for every other application. Intake opened October 13, 2026.
Four streams, two kinds of money.
| Business · AI Adoption | Business · Commercialization | Not-for-profit · AI Adoption | Not-for-profit · AI Ecosystem | |
|---|---|---|---|---|
| For | Using AI in your business | Bringing an AI product to market or scaling it | AI in your own operations | Helping many SMEs adopt or scale AI |
| Funding | $125K - $5M | $125K - $5M | $125K - $5M | $125K - $10M |
| Type | Repayable, 0% interest | Repayable, 0% interest | Non-repayable | Non-repayable |
| FedDev share | Up to 50% | Up to 50% | Up to 90% | Up to 90% |
| Years operating | 3+ | 1+ | 3+ | Track record required |
| Staff | 5 - 499 FTE | 1+ FTE in S. Ontario, < 500 total | 5+ FTE, $1M+ revenue or expenses | 5+ FTE, $1M+ revenue or expenses |
Business eligibility checklist.
Interest-free, repayable funding of up to 50% of eligible costs. Tick what applies - you need every general and money box, plus one full stream.
Tick each box that applies. You need every general and money box, plus every box in at least one stream.
Is your project the right kind?
Usually funded
- AI readiness assessments
- Acquiring and integrating AI solutions - predictive analytics, robotics
- Upgrading equipment, digital infrastructure and processes
- Data quality, governance and architecture
- Cybersecurity
- Training, AI literacy and change management
- Responsible-AI guidelines, frameworks or committees
- Operational autonomy, such as cloud diversification
Usually not funded
- Commonly available AI tools on their own
- Land or building purchases
- Refinancing existing debt
- The cost of preparing your application
- Costs that aren’t new or aren’t tied to the project
Adoption priority sectors: healthcare and life sciences, energy and natural resources, transportation, agriculture, and manufacturing and robotics. Commercialization favours market traction and ecosystem backing - sales, exports, patents, angel or VC investment, accelerators.
How the money works
- Type
- Repayable, interest-free contribution - a zero-interest loan, not a grant
- Amount
- $125,000 to $5,000,000 per project
- Cost share
- FedDev Ontario up to 50%; you at least 50%
- Repayment
- Normally begins 1 year after the project is completed
- Stacking
- All government help combined: max 50% of eligible capital costs and 75% of non-capital costs (Indigenous-led projects up to 100%)
- Who signs
- Your authorized and financial contacts must be your own people - not a consultant
What to have ready
- Incorporation documents, including ownership percentages
- Financial statements and realistic projections
- Project plan and detailed budget
- The RAII Supplemental Form
- Bios of management and the project team
- Jobs created or maintained - at completion and 2 years later
- Responsible-AI plan with an implementation timeline
- IP strategy, and proof of rights to any third-party IP
- Proof of matching funds - bank statements, term sheets, letters
- Optional: cybersecurity strategy, diversity plan, investor or accelerator support
Full list in FedDev Ontario's Application Guide for businesses.
Organization eligibility checklist.
Non-repayable funding of up to 90% of eligible costs. Choose one stream: adopt AI in your own operations, or run a program that helps many local businesses adopt it.
Tick each box that applies. You need every general and money box, plus every box in at least one stream.
AI Adoption
$125K - $5MNot-for-profits, charities, FNMI not-for-profits and municipal governments
Adopting and integrating AI in your own operations: readiness assessments, AI solutions, data governance, cybersecurity, reducing dependence on a single vendor, staff AI literacy and change management.
AI Ecosystem
$125K - $10MNot-for-profits and FNMI not-for-profits that already serve many businesses
Helping southern Ontario SMEs adopt, commercialize and scale AI: expertise, training and advisory services, adoption programs, testbeds and supplier showcases, talent, responsible-AI frameworks, cybersecurity and compliance.
Business associations, boards of trade, BIAs and accelerators
The AI Ecosystem stream can fund an AI adoption program for your members - training, advisory, readiness assessments and hands-on implementation. Nisco can be the delivery partner that designs and runs it with you.
How the money works
- Type
- Non-repayable contribution
- Amount
- $125,000 - $5,000,000 (Adoption) · $125,000 - $10,000,000 (Ecosystem)
- Cost share
- FedDev Ontario up to 90%; you and other sources at least 10%. Projects where FedDev pays 50% or less may be preferred
- Agreement
- Sign the contribution agreement and confirm all matching funds within 30 days of approval
- Not eligible
- Land or buildings, refinancing debt, application preparation, costs that aren’t new or project-related
First Nations, Métis and Inuit organizations: FedDev Ontario invites you to ask about eligibility flexibility at indigenous-autochtones@feddevontario.gc.ca.
What makes an application score well.
Meeting the criteria gets you assessed. These are what FedDev Ontario says it looks for once you are.
A clear, specific AI solution
Say exactly what will be adopted or commercialized - not "AI" in general - and how your operations change because of it.
A credible plan and budget
Realistic costs, a team that can deliver, partner contributions, and - for businesses - the ability to repay.
Measurable outcomes
Jobs created, revenue growth, and productivity gains you can actually measure after the project.
Responsible AI, in writing
Concrete measures with a timeline: cybersecurity, human oversight, privacy, fairness and transparency where relevant.
An IP plan
Who owns what the project creates, and how it is protected and used for growth.
Inclusion and Canadian capacity
Priority goes to projects that widen access - youth, Indigenous peoples, underrepresented groups, small and rural communities - and build domestic capability.
We shape the AI project. You stay the applicant.
RAII funds the work, not the paperwork. We help you design a project that meets the program's priorities - then build it if you're funded. Toronto-based since 2010, model-agnostic, credentialed by Anthropic.
- 01Free eligibility callWe check your organization and idea against the criteria, and tell you honestly if it fits - and which stream.
- 02Readiness assessment and scopeA defined AI project with a realistic budget, outcomes you can measure, and a responsible-AI plan.
- 03Your application, your voiceYou apply directly to FedDev Ontario. We supply the technical scope, costs and plans you need.
- 04Delivery if fundedWe build, integrate, train your team and report against the outcomes in your agreement.
No success fees. We never act as your contact with FedDev Ontario.
RAII funding - common questions
What is the Regional Artificial Intelligence Initiative (RAII)?
RAII is a FedDev Ontario funding program that helps southern Ontario businesses and organizations adopt AI, helps AI companies commercialize and scale, and supports organizations that help businesses do both. It is part of the federal AI for All national AI strategy. Applications are open from October 13, 2026 to January 19, 2027 at 4:59 p.m. EST.
Is RAII funding a grant or a loan?
For businesses, RAII is a repayable, interest-free contribution covering up to 50% of eligible costs, with repayment normally starting one year after the project ends. For not-for-profits, charities and municipalities, RAII funding is non-repayable and can cover up to 90% of eligible costs.
What is the deadline to apply for RAII?
The final deadline is January 19, 2027 at 4:59 p.m. Eastern Standard Time. If your project and its eligible costs start before March 31, 2027, you must apply by November 24, 2026.
Can I use RAII to pay for ChatGPT or Copilot subscriptions?
Not on their own. FedDev Ontario requires AI Adoption projects to go beyond commonly available AI tools - for example integrating AI into your systems, building data governance, readiness assessments, cybersecurity and staff training.
How small can my project be?
The minimum contribution is $125,000. For a business at the 50% cost share, that means eligible project costs of roughly $250,000 or more. Not-for-profits can receive up to 90%, so their minimum project size is smaller.
Does Nisco AI Systems apply on my behalf?
No. You remain the applicant, and FedDev Ontario requires your authorized and financial contacts to be your own people, not a consultant. Nisco AI Systems helps you scope an eligible AI project, run the readiness assessment, build the budget and responsible-AI plan, and delivers the project if it is funded. Nisco does not charge success fees.
Important. FedDev Ontario makes all eligibility and funding decisions; meeting the criteria does not guarantee funding. This page is general information summarized from FedDev Ontario's published RAII pages (last updated October 2026) - not financial or legal advice. Nisco AI Systems is not affiliated with or endorsed by the Government of Canada. Always confirm details with the official pages: