The Canadian federal government has announced an additional $500 million over five years to help businesses adopt artificial intelligence (AI), develop new products and commercialize Canadian technology.

Announced on October 13, 2026, the investment expands the Regional Artificial Intelligence Initiative (RAII), bringing its total federal funding to $700 million. The programme is designed to help Canadian companies turn AI innovation into practical business applications and support domestic technology growth.

The initiative targets industries including healthcare, energy, transportation, agriculture and manufacturing. Businesses may use the support to explore AI adoption, improve productivity and bring locally developed AI products and services to market.

Since its launch in 2024, the programme has supported 218 projects, which the government says have created or maintained more than 1,100 jobs. The projects have also generated $1.77 in additional investment for every dollar invested through the initiative, according to the government.

The expanded funding forms part of Canada’s broader AI strategy, which aims to strengthen the country’s technological capabilities and help businesses compete in international markets. Funding is delivered through regional development agencies, with application details and deadlines varying by region and programme.

Why it matters: The expanded initiative could give eligible Canadian businesses more opportunities to modernize operations, invest in AI tools and commercialize homegrown technology. Companies should review their regional programme requirements before applying.