Artificial Intelligence (AI)

A federal procurement and funding program that supports Canadian SMEs developing artificial intelligence solutions to help solve government challenges.

Government of Canada

Overview of the Artificial Intelligence (AI) program:

The Artificial Intelligence (AI) Stream of the Innovative Solutions Canada (ISC) program aims to support the growth and scale-up of Canadian small and medium-sized enterprises (SMEs) that are developing cutting-edge AI technologies. This stream enables the Government of Canada to act as a first buyer of innovative AI-based solutions by issuing real-world challenges on behalf of participating federal departments. Administered by Innovation, Science and Economic Development Canada (ISED), the program invites Canadian SMEs to respond to posted AI challenges by submitting proposals that demonstrate innovative applications of AI, machine learning, natural language processing, computer vision, and other intelligent technologies. The AI Stream has a dual-purpose mandate: (1) help Canadian government departments solve complex operational issues through AI solutions, and (2) foster commercial growth for emerging Canadian AI companies by providing critical funding and validation through government procurement. The program operates in challenge-based cycles, with new AI challenges posted periodically. Companies can submit solutions and, if selected, receive funding to prove the feasibility of their ideas (Phase 1), and subsequently develop prototypes (Phase 2). The Government of Canada may also purchase successful solutions, enabling real-world deployment. This initiative aligns with Canada’s broader AI strategy, fostering domestic innovation, reducing barriers to commercialization, and giving SMEs a pathway to scale.

Benefits of the Artificial Intelligence (AI) program:

Early-stage funding for feasibility and prototype development
Non-repayable, non-dilutive financial support
Opportunity to sell AI solutions directly to the federal government
Increased visibility through federal endorsement
Accelerated product validation and real-world application
Direct support from public-sector clients
Competitive advantage in both public and private markets
Alignment with Canadas national AI strategy

Eligibility criteria of the Artificial Intelligence (AI) program:

To be eligible, applicants must:
Be a for-profit small or medium-sized business (SME)
Be incorporated in Canada
Have under 500 full-time equivalent (FTE) employees
Own the intellectual property (IP) for the proposed AI solution
Meet the specific eligibility criteria of the AI challenge being applied to
Be able to deliver the proposed solution within the timelines set by the challenge
Additional selection criteria include:
Technical merit and innovation
Market potential and scalability
Benefit to government operations
Capability to deliver