Canada’s recent top-up to its Regional AI Initiative (RAII) is evidence of the country’s commitment to staying competitive in the global AI race, says Minister of Emergency Management and Community Resilience Eleanor Olszewski.
The federal government officially announced the $500-million recapitalization last week after telegraphing the investment earlier this month. Olszewski, who is also the minister responsible for Prairies Economic Development Canada (PrairiesCan), said the funding increase was a response to a sustained desire for support from Canadian businesses.
“There’s a huge variety of ways AI can improve productivity, build a business, innovate, and increase workers hired.”
Eleanor Olszewski, PrairiesCan
“This increased funding is indicative of this government’s commitment to using AI technology,” Olszewski said, adding that she couldn’t speculate on whether the program would be sustainable in the long term or whether the government expected AI-related costs to lower in coming years.
“It shows … commitment to making sure we’re keeping up with other countries in terms of AI, and that we’re protecting our own sovereignty in that space,” Olszewski added.
The RAII is a national initiative designed to help support Canadian businesses and organizations onboard or expand AI in their operations. Funding is dispersed through Canada’s seven regional economic development agencies (RDAs).
The $500-million recapitalization, added over five years, brings the total funding for the RAII to $700 million. It launched with $200 million investment in 2024.
Olszewski said the program’s rollout in the Prairies has been successful in casting a wide net when it comes to the type of businesses it supports. The minister specifically referenced both Edmonton’s Samdesk, a crisis detection and management platform, and Saskatchewan-based Ground Truth Ag, an AgTech company using AI to evaluate grain, as recipients that stood out during the first round of funding. Ground Truth was honoured in BetaKit Most Ambitious this year for its work supporting Canada’s food supply chain.
“[There’s a] huge variety of ways in which AI can be used to improve productivity, build a business, innovate, and increase the number of workers hired,” she said. “[The RAII] helped Samdesk scale up and expand operations. That enabled it to move even more deeply into the US and international markets.”
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Applications for the second round of RAII funding are open until 2030, with RDAs evaluating applications across a variety of eligibility criteria. Olszewski said factors like the compute demand required by an applicant, as well as the potential economic returns, also come into play.
“It also might look at job creation, as well. There are a number of factors that PrairiesCan looks at to make that determination.”
Applications can be made through each region’s RDA, a list of which is available here.
BetaKit’s Prairies reporting is funded in part by YEGAF, a not-for-profit dedicated to amplifying business stories in Alberta.
Feature image by Jesse Cole for BetaKit.