By Dmitri Logounov, New Design Group · Published June 10, 2026 · Updated June 2026
On June 4, 2026, the federal government launched “AI for All” — Canada’s national AI strategy, with over $3.5 billion behind it. For a small or mid-size business, three programs matter most: the $500M LIFT program through BDC to finance AI adoption, the $500M Regional AI Initiative through agencies like FedDev Ontario, and NRC IRAP, which is taking calls right now. Here is what each one does and how to position your company to use them.
The numbers behind the strategy
- Only 12% of Canadian businesses use AI today. Nordic countries: 29–42%. The government’s target: 60% by 2034.
- 78% of businesses that haven’t adopted AI say they don’t see how it would benefit them. The strategy calls this the “translation problem” — and it’s where most of the SMB money is aimed.
- Canada now has its first Minister of Artificial Intelligence (Evan Solomon). This is a cabinet-level, funded mandate — not a press release.
- Five priority sectors: health, energy, agriculture, transportation and manufacturing.
The three programs that matter for SMBs
1. BDC LIFT Program — $500M to finance AI adoption
LIFT provides financing specifically for small and mid-size businesses adopting AI tools and infrastructure. If capital has been the reason you’ve postponed automation or AI projects, this program exists for exactly that barrier. Program details are rolling out through 2026 — if you have a BDC relationship, ask your account manager about LIFT now, before the queue forms.
2. Regional AI Initiative — $500M through FedDev Ontario
This money flows through Regional Development Agencies. For businesses in Toronto and Southern Ontario, that means FedDev Ontario. These programs typically fund adoption projects, advisory services and pilot deployments. Details are expected over the coming months. What you can do today: have a documented AI roadmap ready, so you can apply the week a program opens instead of starting from zero.
3. NRC IRAP — open now
The Industrial Research Assistance Program is active today and allocated over $550M to Canadian SMEs this fiscal year. It starts not with a form but with a phone call (1-877-994-4727): you’re assigned an Industrial Technology Advisor who works with you on eligibility and scope. First-time recipients typically receive $75,000–$200,000. IRAP’s AI Assist stream specifically supports companies building and deploying AI in their products and operations.
What this means if you’re a manufacturer
Manufacturing is one of the strategy’s five priority sectors. In practice: when Regional AI Initiative programs open, manufacturing applications will compete in a lane the government has already decided to fund. The use cases the strategy highlights — production optimization, predictive maintenance, supply chain — are real, but for most 20–100 person shops the first wins are simpler: quoting speed, technical content, and being findable when an engineer asks ChatGPT for suppliers.
What this means if you’re a financial firm
The strategy pairs adoption money with a trust agenda: a Trusted AI Certification program, AI safety rules, watermarking. For regulated firms this is good news — the compliance expectations are becoming clearer, and “we use AI with documented human review” is becoming a defensible, fundable position rather than a risk.
How to get ready (in order)
- Map where AI actually pays off in your business. 78% of non-adopters can’t name the benefit — the companies that can will write the strongest funding applications. This is what an AI opportunity audit produces: a documented roadmap with numbers.
- Call IRAP (1-877-994-4727) and get assigned an advisor. It costs nothing and the relationship matters later.
- Talk to BDC about LIFT if financing is your constraint.
- Watch FedDev Ontario announcements over the next quarter — and be ready with your roadmap.
FAQ
Is CDAP still available?
No. The Canada Digital Adoption Program closed in March 2024. Websites still advertising CDAP grants are outdated. AI for All’s programs (LIFT, Regional AI Initiative) are its practical successors.
Can government funding pay for an AI consultant or agency?
Historically, yes — advisory services have been eligible costs under RDA programs and IRAP projects. Each new program will publish its own eligible-cost rules; this is exactly what to confirm with your IRAP advisor or FedDev program officer.
How much can a small business realistically get?
IRAP first-time contributions typically run $75,000–$200,000 against eligible project costs. LIFT and Regional AI Initiative amounts will be published with program details through 2026.
Do I need to be “an AI company” to qualify?
No. The strategy’s core goal is adoption by ordinary businesses — manufacturers, service firms, professional practices. You need a credible plan for using AI in your operations, not an AI product.
Where do I start if I don’t know what AI would even do for my business?
Start with an audit of your processes — where hours go, what’s repetitive, what knowledge lives in people’s heads. That document becomes both your internal roadmap and the backbone of any funding application. This is the exact service we offer as a flat-fee engagement.
New Design Group is a Toronto agency — branding, web design and practical AI adoption for small business, since 2002. We help companies in manufacturing and financial services figure out where AI pays off, and we put it to work. AI Opportunity Audit — $6,500 flat, 3 weeks, or book a free working session.
Sources: Government of Canada, “AI for All” national AI strategy (ISED, June 4, 2026); Prime Minister’s Office release, June 4, 2026; NRC IRAP program documentation 2025–26; Statistics Canada business AI-use data. Figures current as of June 2026.
