There is no doubt that those organizations who ignore Artificial Intelligence (AI) are set to miss an opportunity to gain a competitive advantage and risk being left behind in the rapid development of these innovative technologies.
The Federal government has announced an innovative new program called the Regional Artificial Intelligence Initiative (RAII) designed to boost AI projects on the Prairies. MLT Aikins wants to make sure your growing business doesn’t get left behind in today’s AI revolution. In this article, we give you an inside look at how participating in RAII can ensure your company stays ahead of the curve.
What is the Regional Artificial Intelligence Initiative?
RAII is part of Canada’s commitment to maintaining its leadership in artificial intelligence and is designed to boost AI projects across Canada by providing significant funding and support.
Under Budget 2024, PrairiesCan or Prairies Economic Development Canada – the department responsible for promoting economic growth on Canada’s Prairies – received $33.8 million over five years to deliver this initiative. It aims to diversify the economy across the Prairies by supporting business, innovation, and community economic development.
Why it’s so important to help fund AI initiatives
We all know how easy it is for AI to quickly transform various business functions such as financial planning, accounting, risk management and tax operations, leading to significant returns on investment. Financing AI enables businesses to leverage AI technologies to solve real problems and achieve strategic growth.
AI infrastructure financing is critical to support the growing applications of AI across industries, ensuring that businesses have the necessary resources to scale their AI capabilities. This includes investments in AI data centres and energy infrastructure to address the high energy demands of AI technologies.
What does RAII offer?
The RAII offers funding for AI projects in two main areas:
- AI productization and commercialization: This helps small and medium-sized enterprises (also known as SMEs) to turn their innovative AI projects into real-world solutions. The funding supports growth capital, hiring the right people, managing data, and navigating the AI marketplace.
- Adoption of AI across priority sectors: This helps Canadian businesses integrate AI into their operations to enhance productivity and competitiveness. The support focuses on implementing AI strategies and finding skilled workers.
Who can apply?
The program is open to both for-profit businesses and not-for-profit organizations. Here are some key eligibility criteria:
- For-profit businesses: These businesses must be incorporated in Canada, employ at least one full-time equivalent (FTE) employee, have staffed operating facilities in the Prairie provinces, have been in operation for at least two years, and be commercializing or adopting AI technologies.
- Not-for-profit organizations: These organizations must assist AI businesses, innovators or entrepreneurs in the Prairies and have an operating presence in the region.
What types of projects are covered?
An eligible project may involve a range of activities to commercialize and/or adopt AI technologies, including technology commercialization and adoption. Eligible projects must also have a focus in at least one of the following priority areas:
- advanced manufacturing
- clean resources or technology
- digital industries
- health/biosciences
- natural resources value-added processing
- valued-added agriculture
- inclusiveness
- critical minerals processing
- food and ingredients process
- zero emission heavy equipment vehicles
Funding details
- For-Profit Businesses: If you’re a for-profit business, you can receive interest-free, repayable funding for up to 50% of eligible project costs.
- Not-for-Profit Organizations: If you’re a not-for-profit, you can receive non-repayable funding for up to 90% of eligible project costs, with preference given to projects that leverage other funding sources.
What are eligible costs?
Eligible costs under the program are incremental, reasonable and essential to carrying out the eligible project activities. These include, among others:
- consultancy fees (e.g. professional, advisory and technical services)
- labour costs (e.g. wages and benefits)
- capital costs (e.g. purchase of equipment or machinery)
- costs related to intellectual property protection
- subcontracting costs
- preproduction activities (e.g. technological development and commercial demonstrations)
- costs related to specialized services, such as testing services, research and development and business networking
Costs may be eligible on a retroactive basis up to a 12-month period prior to receipt of funding (but not earlier than April 16, 2024).
How to apply
Applications are accepted on a continuous basis until December 31, 2028, or until funding is fully committed. All projects must be completed by March 31, 2029. Indigenous-led organizations and businesses are strongly encouraged to apply and can even contact PrairiesCan for assistance with the application process.
Don’t delay – Submit your expression of interest as soon as possible to be considered for funding under RAII. For more details on RAII and to apply, visit the PrairiesCan website.
Note: This article is of a general nature only and is not exhaustive of all possible legal rights or remedies. In addition, laws may change over time and should be interpreted only in the context of particular circumstances such that these materials are not intended to be relied upon or taken as legal advice or opinion. Readers should consult a legal professional for specific advice in any particular situation.
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