RAII Pillar 2: FedDev Ontario loans for AI adoption up to $5,000,000
Adopting AI in a way that changes how your company operates takes more than buying a software licence. It means integrating AI or AI-driven solutions into your operations to improve efficiency, productivity and competitiveness. That work can be costly for a small or medium-sized business. This program is closed: the last FedDev Ontario intake closed December 20, 2024, and applications are not currently being accepted.
Pillar 2 of the Regional Artificial Intelligence Initiative (RAII) supports Southern Ontario SMEs that adopt and integrate AI. For-profit SMEs receive a repayable interest-free loan of up to $5,000,000, while non-profits receive non-repayable contributions. A new intake will be announced on the program page.
What is RAII Pillar 2?
RAII Pillar 2 is the AI adoption pillar of the Regional Artificial Intelligence Initiative, delivered by FedDev Ontario. It supports Southern Ontario SMEs in adopting and integrating AI solutions for operational efficiency, productivity and competitiveness.
The focus is on AI adoption and integration for productivity gains. Projects must go beyond simply purchasing commercial off-the-shelf AI tools and involve genuine integration. Eligible spending areas include AI adoption, productivity and hiring.
Pillar 2 is distinct from Pillar 1, a separate program that covers AI productization and commercialization. If your company is building an AI product to sell rather than adopting AI internally, Pillar 1 is the relevant stream.
RAII Pillar 2 at a glance
| Detail | RAII — AI Adoption Pillar 2 (FedDev Ontario) |
|---|---|
| Funding amount | $250K – $5M |
| Program type | Loan |
| Level | Federal |
| Where it applies | Ontario (ON) |
| Status | Closed |
| Deadline | Not currently accepting applications — the last FedDev Ontario intake closed December 20, 2024. The next intake will be announced on the program page; register interest at 1-866-593-5505. |
| What it funds | AI Adoption / Integration, Productivity / Automation / Equipment, Hiring Technical Staff |
| Industries | All sectors, including Software & IT, Advanced Manufacturing, Biotech & Agriculture, Medical Devices, Food & Beverages |
| Company stage | Growth, Expansion, Established |
| Payment model | Milestone |
| Matching funds required | Yes |
| Competition level | High |
How much funding is available?
Funding under RAII Pillar 2 ranges from $250,000 to $5,000,000. How the contribution is structured depends on whether your organization is for-profit or not-for-profit.
Your company must contribute matching funding toward the project, and funds are paid out on a milestone basis.
- For-profit SMEs: contributions are normally repayable as an interest-free loan, up to $5,000,000.
- Not-for-profit organizations: contributions are normally non-repayable.
Who is eligible?
The applicant
- A Canadian SME incorporated in Canada or Ontario, including eligible start-ups.
- For-profit SMEs: contributions are normally repayable as an interest-free loan.
- Not-for-profit organizations: contributions are normally non-repayable.
- The program targets companies at the growth, expansion and established stages.
The project
- The project must be primarily focused on adopting or integrating AI or AI-driven solutions.
- It must go beyond simply purchasing commercial off-the-shelf AI tools and involve genuine integration.
- Pillar 2 covers AI adoption and integration for productivity gains.
- Pillar 1, a separate program, covers AI productization and commercialization.
When and how to apply
RAII Pillar 2 is closed and not currently accepting applications. The last FedDev Ontario intake closed December 20, 2024.
The next intake will be announced on the program page. You can register interest by calling 1-866-593-5505.
The status of RAII — AI Adoption Pillar 2 (FedDev Ontario) in EVAMAX Grant AI™ is currently Closed. Open the program there and choose “Remind me” to be told when it changes.
Is RAII Pillar 2 right for you?
RAII Pillar 2 suits Southern Ontario SMEs at the growth, expansion or established stage that plan a substantial AI integration project aimed at productivity, in sectors such as software and IT, advanced manufacturing, biotech and agriculture, medical devices, and food and beverages. Keep in mind that for-profit funding is normally a loan that must be repaid, that matching funding is required, that payments follow milestones, and that competition is high. Projects limited to buying off-the-shelf AI tools do not qualify, and the program is closed until a new intake is announced.
Next steps: look up RAII — AI Adoption Pillar 2 (FedDev Ontario) in EVAMAX Grant AI™ to see its live status and other programs that fit your company, or talk to EVAMAX about building your application.
Program details are from the EVAMAX Grant AI™ record as of October 8, 2026. Programs change — confirm current terms on the official program page before you apply.