By Cameron A. Axford and Martin U. Wissmath

Prairies Economic Development Canada (“PrairiesCan”) has launched the Regional Artificial Intelligence Initiative (RAII), a federal funding program under Budget 2024 that will provide $33.8 million over five years to support the development and adoption of artificial intelligence (AI) in the Prairie provinces. The initiative is open for applications on a continuous intake basis until December 31, 2028, or until funds are fully committed. All projects must be completed by March 31, 2029.

While the program primarily targets small and medium-sized AI businesses, it also includes eligibility for not-for-profits (NFPs), particularly those that support AI commercialization and adoption across priority economic sectors.

The RAII is part of a national $200 million AI investment announced in Budget 2024. Delivered through Canada’s regional development agencies, the program is intended to support the commercialization of AI technologies by start-ups and scale-ups, and facilitate the adoption of AI by organizations operating in priority sectors such as agriculture, health, clean technology, advanced manufacturing, and others. The program supports both AI developers and organizations integrating AI into their operations.

NFPs may be eligible for RAII support if they are based or have a presence in the Prairie provinces, provide assistance to AI businesses, innovators, or entrepreneurs through services such as start-up support, technology commercialization, productivity improvement, or market expansion, and are legally capable of entering into binding agreements.

Eligible NFPs may include:

• Post-secondary institutions
• Business accelerators and incubators
• Industry associations
• Municipal governments and other public sector organizations
• Social enterprises
• Indigenous-led organizations

NFPs may receive up to 90% of eligible project costs as non-repayable contributions for non-commercial projects. For projects deemed commercial in nature, repayable funding may be provided.

The total contribution from PrairiesCan must fall between $250,000 and $5 million per project, over a period of up to three years. Additional conditions apply to capital expenditures and cost-sharing with other levels of government.

The application process consists of two stages. The Expression of Interest (EOI) is a short online application outlining project details, eligibility, and budget. Supporting documents such as financial statements, confirmation of funding sources, and project plans are required. Applicants whose EOIs are selected will be invited to submit a more detailed proposal by way of a full application, including business plans, financial projections, and project impact assessments.

PrairiesCan encourages applicants to contact its offices before submitting an EOI. Only one project per organization may be approved each calendar year. Decisions on full applications will typically be made within 90 business days.

Additional details, eligibility checklists, and guidance on preparing an EOI can be found on PrairiesCan’s website.

​Read the April 2025 Charity & NFP Law Update