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Artificial Intelligence Grants: Funding opportunities for businesses in Quebec and Canada
Published on 23 April 2025 par David Beauchemin, Ph. D.
Artificial Intelligence (AI) is becoming a key driver of competitiveness and innovation for businesses. Whether you're an SME undergoing digital transformation or a growing startup, numerous grant and funding programs are available to support your AI projects.
Types of grants and funding available for AI projects
Non-repayable grants
Non-repayable grants are financial aids provided without the obligation of repayment, often linked to innovation, research and development (R&D), or digital transformation.
Support for technological innovation or applied R&D
- For developing, prototyping, and validating AI concepts.
- Targets experimentation or proof-of-concept projects.
- Suitable for projects with technical uncertainties, such as new AI applications in business domains.
Support for digital technology integration
- For companies implementing AI solutions in operations (production, management, logistics, etc.) or commercial software.
- May include technology audits or demonstrators.
- Aims to directly integrate AI into operations.
Funding for collaborative projects with research centres
- Non-repayable aid for companies conducting AI projects with universities, CCTTs, or specialized centres.
- Encourages partnerships between the private sector and academia.
- Suitable for projects with technological uncertainties or at the preliminary vision stage without a concrete action plan.
- For example, a short engagement with a CCTT can help identify various AI application avenues.
Scholarships or credits from incubators and accelerators
- Initial support for tech startups, often in the form of scholarships, coaching access, or service credits.
- Non-dilutive, often combined with strategic support.
- Aims to provide AI support to accelerate integration into tech solutions.
- For instance, Scale AI offers up to $120,000 in AI support grants through various incubators.
Wage subsidies or AI talent integration
- For hiring AI specialists, interns, postdoctoral researchers, etc.
- Objective: promote knowledge transfer within companies.
- For example, NRC IRAP offers such programs.
Training or skill development in AI
- To develop internal AI skills (training, certifications, etc.).
- For example, AI training to facilitate the integration of generative AI technologies into operations.
- Productivité-Compétences and Scale AI offer grants covering a portion of AI training costs for teams.
Innovation competitions or calls for projects
- Competitive funding awarded to companies submitting innovative AI projects (e.g., public challenges, hackathons, MEIE calls for projects).
- Targets ambitious projects often involving multiple companies with common needs.
Repayable or partially repayable funding programs
These programs provide financial support in the form of loans, repayable advances, or grants conditional on certain performances.
Preferential or interest-free loans for tech projects
- Funding for purchasing or developing AI equipment and solutions.
- Sometimes combined with grants.
- For example, BDC offers this type of financing through its LIFT program, dedicated to AI adoption by SMEs.
Conditional repayable advances
- Often repayable only if the project generates revenue or achieves certain results.
- For instance, some aids from Investissement Québec or MEIE offer repayable advances, reimbursed only if the project meets specific performance or revenue objectives.
R&D tax credits
- Allow recovery of a significant portion of expenses related to research, software development, or AI experimentation.
- Applicable at the federal level through SR&ED, and at the provincial level through the CRIC since 2025 (differences between Quebec and the rest of Canada).
Mixed financing (grant and loan)
- Some programs combine repayable loans with a non-repayable portion, depending on the project's or company's profile.
Government-guaranteed commercial loan programs
- Offered by banks or financial institutions with government support (e.g., for SMEs' digital transformation).
Tax credits for technology integration or training
- Some provinces offer tax incentives for purchasing technologies or developing AI-related skills.
Municipal or regional programs specific to certain sectors or territories
Cities or RCMs also offer AI funding. These initiatives are often lesser-known but can provide significant leverage to initiate a project or access nearby specialized resources.
City programs (e.g., Montreal, Quebec City, Sherbrooke)
Some cities offer specific support for AI or digital transformation (scholarships, competitions, consulting service credits, etc.).
- For example, Quebec City offers very good innovation funding with a maximum contribution of $150,000 per project, for a maximum of 50% of eligible expenses.
RCM or CLD initiatives (Local Development Centres)
Investment aid, support for implementing tech projects in specific regions.
- For example, Économie du savoir offers this type of funding.
Local economic development organizations
Organizations such as PME MTL, Entreprendre Sherbrooke and Québec International offer support, tech diagnostics, and sometimes funding for AI-related projects.
Private investors (tech venture capital)
Private investors are not grants or government aid but a complementary financing method.
Tech venture capital and private investors
- Can finance the development or scaling of an AI project.
- Attractive for innovative startups with high growth potential.
- Often used alongside public grants to accelerate commercialization.
Angel investors specializing in deeptech or AI
- Provide funding, mentorship, and industry connections.
- Often interested in real-world AI applications in sectors like healthcare, finance, or logistics.
Growth equity firms or institutional funds
- May support later-stage companies by helping with scaling, internationalization, or industrialization of AI solutions.
AI grants: key programs in Quebec
- Non-repayable grant
- Tax credit
- Training support
- Repayable loan
The pills at the bottom of each card indicate something different: the theme of the project, whether artificial intelligence, innovation, technology, digital transformation or training.
Innovation program (MEIE)
- Non-repayable or repayable support depending on the nature of the project, backed by the Government of Quebec.
- Stream 1 supports innovation projects led by a single company: development, validation, prototyping, commercialization.
- Stream 2 funds mobilizing projects that bring several partners together.
- Projects involving AI, automation, or digital transformation are eligible.
- A private cash contribution of at least 25% of eligible expenses is required, or 20% for a social economy enterprise.
| Eligible Industries | Eligible Funding | Project Type |
|---|---|---|
| All industries | Up to $500,000 under Stream 1 Up to $10M and 50% of expenses under Stream 2 |
Innovation |
ESSOR program
- Funding to increase business productivity through innovation.
- May include AI for modernizing operations or processes.
- Offers grants or loans depending on the stream.
- Also targets the purchase of equipment or digital transformation.
- Quebec's 18 March 2026 budget adds $105M, targeting modernization, automation and expansion projects.
| Eligible Industries | Eligible Funding | Project Type |
|---|---|---|
|
Varies by stream Envelope increased by $105M in 2026 |
Innovation Digital transformation |
AI-related CRIC tax credit
- Refundable Quebec tax credit, in effect for taxation years beginning after 25 March 2025.
- It replaces eight tax measures, including the four former Quebec R&D tax credits.
- Based on eligible expenses for research, innovation and pre-commercialization activities carried out in Quebec.
- AI qualifies if the project involves technical experimentation.
- It stacks with the federal SR&ED credit, which makes it the most advantageous combination for a Quebec SME.
| Eligible Industries | Eligible Funding | Project Type |
|---|---|---|
| All industries | 20% refundable 30% on the first $1M of eligible expenses |
Innovation Technology |
Tax credit for the development of e-business integrating AI (CDAEIA)
- Tax credit offered by Revenu Québec, formerly known as the CDAE.
- Covers 30% of eligible salaries in 2026, split into 22% refundable and 8% non-refundable.
- Targets digital businesses developing solutions that significantly integrate AI (automation, personalization, data analysis).
- The cap per eligible employee has been abolished and replaced by an exclusion threshold. Maintenance work on existing systems is excluded.
- Requires rigorous structuring of activities and technical documentation.
- Ideal for maximizing returns on intelligent digital platform or tool development.
- Advisory support is recommended for eligibility and compliance.
| Eligible Industries | Eligible Funding | Project Type |
|---|---|---|
| Information technology industry | 30% tax credit in total 22% refundable and 8% non-refundable in 2026 |
Artificial intelligence Innovation Technology |
PARTENAR-IA Entreprise
- Financial support for collaborative AI projects between businesses and research centres.
- Covers up to 35% of eligible costs for SMEs and large enterprises, and up to 50% for startups.
- Objective: encourage co-innovation and technology transfer.
- Targets both SMEs and large enterprises. Applications are submitted to the industrial sectoral research group for your sector.
| Eligible Industries | Eligible Funding | Project Type |
|---|---|---|
|
Up to $1,500,000 per project 35% of costs for SMEs, 50% for startups |
Artificial intelligence |
Productivité-Compétences program
- Funds structured training projects to develop or reskill the existing workforce.
- A dedicated AI call for projects funded 51 training projects across Quebec.
- Can cover the salaries of staff in training and the fees of trainers.
- Companies take part by contacting a collective promoter rather than applying on their own.
| Eligible Industries | Eligible Funding | Project Type |
|---|---|---|
| All industries | Up to 85% of eligible expenses | Artificial intelligence Training |
Québec strategy to support research and investment in innovation (SQRI2)
- A broad framework supporting several areas of innovation, including AI.
- Funds collaborative research, talent acquisition, and deployment of AI solutions.
- Indirect funding mechanisms through various ministries or organizations.
- The strategy covers 2022 to 2027, with an envelope of more than $7.5B.
| Eligible Industries | Eligible Funding | Project Type |
|---|---|---|
|
Up to $600,000 Up to 80% of total project costs |
Innovation |
NovaScience program call for projects
- Supports the development of scientific and technological talent.
- Grants for internships, hiring recent graduates, or AI-related training.
- Helps integrate new talent into innovative SMEs and non-profits.
| Eligible Industries | Eligible Funding | Project Type |
|---|---|---|
|
Up to $200,000 Up to 80% of total project costs |
Artificial intelligence Innovation Technology |
AI grants: national and federal programs in Canada
Regional Artificial Intelligence Initiative (RAII)
- Administered in Quebec by Canada Economic Development, with a $38.2M envelope for the province.
- Funds the development and commercialization of an AI solution, or its integration into your operations.
- Applications are accepted on a continuous basis, with no deadline, until 31 March 2029.
- The adoption of responsible AI is encouraged in the assessment of projects.
| Eligible Industries | Eligible Funding | Project Type |
|---|---|---|
|
Up to 50% of costs Up to 90% for a non-profit |
Artificial intelligence Innovation |
BDC LIFT program
- A $500M envelope dedicated to AI adoption by Canadian SMEs.
- Two streams: matching with AI advisors, then financing the chosen solution.
- Loans from $25,000 to $5M, with a preferential rate if you choose a Canadian supplier.
- Open to SMEs with at least $1M in annual revenue.
| Eligible Industries | Eligible Funding | Project Type |
|---|---|---|
| All industries | Loan from $25,000 to $5M Principal deferral of up to two years |
Artificial intelligence Digital transformation |
SR&ED tax credit
- Federal credit based on eligible expenses in scientific research and experimental development.
- The expenditure limit rose from $3M to $6M for taxation years beginning on or after 16 December 2024.
- An eligible Canadian-controlled private corporation receives the enhanced 35% rate on the first six million.
- Widely used by tech and manufacturing firms.
| Eligible Industries | Eligible Funding | Project Type |
|---|---|---|
| All industries | 35% on the first $6M of expenses Up to $2.1M in refundable credit per year |
Innovation Technology |
Industrial research assistance program (NRC IRAP)
- Provides direct financial support to innovative SMEs.
- Funds technology development, including AI-related projects.
- Includes technical support and salary contributions for AI personnel.
| Eligible Industries | Eligible Funding | Project Type |
|---|---|---|
| Professional, scientific, and technical services | Non-repayable contribution A significant share of eligible labour costs |
Innovation Technology |
Scale AI
- Canada's AI cluster focused on supply chain innovation.
- Offers substantial grants for collaborative projects between businesses and researchers.
- Covers a portion of salaries, R&D costs, and AI technology tools.
- Projects must involve more than one organization, including at least one SME with fewer than 500 employees. A project led by a single company is not eligible.
| Eligible Industries | Eligible Funding | Project Type |
|---|---|---|
|
Up to 50% of total project costs Amount varies with project scope |
Artificial intelligence Innovation Technology |
Scale AI Talent
- Supports training and upskilling initiatives in artificial intelligence.
- Provides funding to companies training their employees on AI tools and concepts.
- Covers internal programs or partnerships with educational institutions.
| Eligible Industries | Eligible Funding | Project Type |
|---|---|---|
| Professional, scientific, and technical services | Varies with the training project | Artificial intelligence |
Next Generation Manufacturing Canada (NGen)
- Supports the adoption of advanced technologies, including AI, in manufacturing.
- Grants available for collaborative and innovative industrial projects.
- Aims to boost Canadian manufacturing productivity and competitiveness.
| Eligible Industries | Eligible Funding | Project Type |
|---|---|---|
|
Varies by call for projects Generally up to 50% of costs |
Technology Digital transformation |
Strategic Response Fund (SRF)
- Supports high-impact innovation projects, including artificial intelligence.
- Targets large businesses or structuring projects in strategic sectors.
- Aims to foster growth, commercialization, and technological transformation.
- The minimum contribution sits around $10M, for projects of at least $20M.
| Eligible Industries | Eligible Funding | Project Type |
|---|---|---|
|
Up to 50% of total project costs Minimum contribution of around $10M |
Innovation Technology |
Which companies can benefit from AI grants?
Eligible business types
SMEs, startups, scaling companies, and large enterprises.
Eligible sectors
ICT, healthcare, manufacturing, professional services, agriculture, and more.
Why invest in artificial intelligence today?
In a context marked by productivity pressure, labour shortages, and rapid digital transformation, AI is a key lever for staying competitive. It enables you to optimize processes, innovate in your products and services, and make faster, better-informed decisions. Investing in AI is also a way to secure long-term technological investment.
For both SMEs and large enterprises, AI opens the door to tangible new opportunities:
- automating low-value tasks
- enhancing customer experience
- predictive analytics
- service personalization
- operational efficiency gains
AI has broad applications across sectors: ICT, manufacturing, professional services, healthcare, agriculture, logistics. No matter your industry, artificial intelligence can create lasting impact.
In summary
Investing in artificial intelligence means betting on transformation, innovation, and added value in a fast-evolving world. It also means seizing today's opportunities to build tomorrow's solutions.
Turn your AI projects into real opportunities
AI grants offer more than financial support: they help companies bring innovative ideas to life, accelerate their digital transformation, and reduce the risks associated with technological experimentation. By leveraging these funding programs, you can integrate AI into your operations while maintaining control over your resources and priorities.
Identifying the right opportunities, structuring a solid project, and collaborating with the right partners, every step counts in making AI a real driver of growth.
Ready to get started?
We offer tailored support to help you identify the right programs for your needs and guide you through the application process.
AI grants: FAQ
Can an SME get funding for an AI project?
Yes, several programs are specifically designed for SMEs, including non-repayable grants, tax credits, or support for integrating AI talent. Programs like NRC IRAP, the Innovation Program (MEIE), the RAII and BDC's LIFT program are good examples.
Are there priority sectors for AI funding programs?
Yes. Priority sectors vary by program, but typically include information technology, manufacturing, healthcare, agri-food, professional services, and the environment. Sectors like logistics and finance may also qualify depending on the project.
What are the eligibility criteria for AI grants in Quebec and Canada?
Criteria vary by program but generally include:
- Having a business establishment in Quebec or Canada
- Presenting a project focused on innovation or digital transformation
- Demonstrating the capacity to carry out the project (team, budget, structure)
- Partnering with eligible organizations (e.g., research centres, universities)
How can I determine if my AI project is eligible for government funding?
Review program guidelines, conduct a tech maturity assessment, or consult with an innovation advisor (e.g., PME MTL, NRC, Baseline). Projects that involve experimentation, automation, or clear value creation are often eligible.
Does the CRIC tax credit replace the federal SR&ED program?
No. These are two separate regimes that stack. The CRIC is provincial and replaces the former Quebec R&D tax credits, while SR&ED remains the federal credit. A Quebec company can claim both for the same eligible R&D activities.
Can multiple grants be combined for the same AI project?
Yes, under certain conditions. Some programs allow stacking, but all funding sources must be clearly disclosed. Double-dipping (claiming the same expense through multiple programs) must be avoided.
What is the maximum amount of funding available for an AI project?
It depends on the program. Some offer $25,000 to $100,000 for pilot projects, while others go up to several million dollars for large-scale or collaborative initiatives (e.g., Scale AI, Strategic Innovation Fund).
Are AI grants disbursed in a lump sum or in instalments?
Most grants are disbursed in instalments, based on milestones, deliverables, or incurred expenses. Progress reports and supporting documentation are usually required to release the funds.
Do AI grants cover employee training costs?
Yes, some programs (e.g., Scale AI Talent, NovaScience, Productivité-Compétences) cover costs related to AI training, upskilling, or certification for your workforce.
How do I apply for an AI grant?
Here are the key steps:
- Identify the program best suited to your project
- Prepare a clear application with goals, budget, and timeline
- Gather required documents (project plan, financials, letters of support)
- Submit your application through the program's portal
- Follow up and respond to any additional information requests
What documents are required to apply for an AI grant?
Requirements may vary, but commonly include:
- Application form
- Project description
- Detailed budget
- Evidence of partnerships (if applicable)
- Recent financial statements
- Deployment plan or technology roadmap
How long does it usually take to get a response after submitting a grant application?
Typically between 4 and 12 weeks, depending on the program. Some competitions or calls for projects may take longer, especially those involving review committees or multi-step evaluation processes.
What are the typical obligations after receiving an AI grant?
Companies are generally required to:
- Use funds as outlined in the approved project
- Submit technical and financial reports
- Keep all supporting documentation
- Accept potential audits or evaluations
- Acknowledge program support in communications, as required
Guide updated on 24 August 2026. Funding programs change with government budgets and calls for projects. The amounts shown are indicative and should be confirmed with the responsible organization.
How to apply for an AI grant?
Key steps to a successful application
Identify the right funding program
Take the time to meet with the funding body to confirm your eligibility and learn best practices to avoid errors and wasted time.
Prepare a solid application package
Preparing a strong application can take between 10 and 40 hours depending on the program and your experience.
Common mistakes to avoid