Feds make good on AI Strategy pledge with $500-million top-up for regional AI initiative

By October 14, 2026
Evan Solomon speaking into a microphone.
AI Minister Evan Solomon at BetaKit's Most Ambitious: Town Hall.
Total funding now sits at $700 million, with aims to support AI adoption and commercialization. 

Canada’s Regional Artificial Intelligence Initiative (RAII) received a $500-million top-up on Tuesday, as the federal government delivered on a pledge it made as part of the National AI Strategy to fund the program.

The news: AI Minister Evan Solomon announced the cash injection in Ottawa, saying the $500 million in new funding will be rolled out over five years to “expand and enhance” the RAII program. The program is designed to support AI adoption and commercialization for Canadian businesses and organizations, and application openings and deadlines vary across each of the seven regions served by the program. 

From the source: “The question is not whether AI will reshape our economy. It is whether Canada will capture the opportunity,” Solomon said in a press release. “The RAII will help Canadian businesses adopt AI and Canadian AI firms scale from here, so that the technology, talent, and economic value 
 remains anchored in Canada.” 

The context: Launched under the previous Liberal government and delivered by Canada’s seven regional development agencies (RDAs), the RAII was initially designed to help small and medium-sized businesses (SMBs) adopt and bring AI technology to market. It has since grown to support wider AI adoption and ecosystem development efforts, with RDAs like PrairiesCan and PacificCan distributing funding to incubators like Saskatchewan’s Co.Labs and BC’s provincial health authority. The expanded RAII looks to support industries “where Canada has strong expertise and economic potential,” such as health and life sciences, energy and resource development, transportation, agriculture, manufacturing, and robotics. 

Final thought: Rates of AI adoption by Canadian businesses have been growing, rising from six percent in 2024 to over 19 percent in 2026. Despite this, rates of AI literacy, workplace training, and trust in AI continue to lag in Canada. Some suggest that the gap is closing, but gulfs in productivity benefits persist.

Solomon and his counterparts have framed this investment as part of continuing efforts to ensure Canada benefits from a global AI buildout, but the investment also comes at a precarious time for AI, with rising concerns around AI safety, calls for regulation, and percolating speculation as to whether AI will be able to deliver on its promised use cases.

BetaKit’s Prairies reporting is funded in part by YEGAF, a not-for-profit dedicated to amplifying business stories in Alberta.

Feature image courtesy Lilac for BetaKit.

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