Canadian small and medium-sized businesses (SMEs) are adopting artificial intelligence (AI) quickly. But turning AI ideas into real products or services costs a lot of money. In April 2024, the federal government announced plans for NRC IRAP AI Assist, which will provide up to $100 million in support for SMEs working with AI, including generative AI and advanced machine learning systems. This funding is designed to help companies move from experiments to commercial products.
If your business is building AI-powered products or adding AI to your main services, this is one of the most important federal funding programs available now.
AI Assist is a special stream of the National Research Council of Canada Industrial Research Assistance Program (NRC IRAP). It supports for-profit Canadian SMEs that are working on AI projects with clear commercial goals.
AI Assist is aimed at companies that meet regular IRAP requirements and are pushing forward with AI innovation.
Your business must:
AI Assist does not offer a fixed grant amount. Instead, support is usually given as non-repayable contributions. NRC IRAP also provides technical and business advice to help your project succeed.
There is no online application form for AI Assist. You must connect directly with NRC IRAP advisors. This makes the process different from many other government grant programs.
Check if you meet IRAP requirements
Make sure your company fits the standard NRC IRAP SME rules.
Contact NRC IRAP to begin intake
Call 1‑877‑994‑4727 or use the NRC IRAP contact form to reach a client engagement advisor.
Work with an Industrial Technology Advisor (ITA)
AI Assist funding is managed by ITAs.
Prepare a clear AI project plan
You will need to explain:
A tool like GrantHub’s eligibility matcher can help you check if your AI project fits IRAP’s requirements before you talk to an advisor.
Funding is based on your project and is worked out with your ITA. Eligible costs often include:
The amount of funding depends on your project’s size and risk. There is no set maximum per company, which is normal for NRC IRAP programs.
Not all AI Assist funding goes straight to SMEs.
NRC IRAP also runs AI Assist calls for organizations such as:
These organizations then offer AI support services to SMEs. When checking eligibility, make sure you are looking at the SME stream, not the stream for delivery organizations.
Thinking AI Assist uses a standard grant application
There is no online form. You must start with a conversation.
Treating AI as a minor add-on
AI needs to be at the heart of your product or service. Small upgrades do not usually qualify.
Waiting too long to contact IRAP
Advisors have busy schedules. Contacting them early improves your chances.
Focusing only on technical details
You need to show clear market results. NRC IRAP looks for projects with commercial impact.
Q: Do I have to be an existing NRC IRAP client to use AI Assist?
No. New companies can contact NRC IRAP and go through intake. Existing clients should speak with their ITA.
Q: Does NRC IRAP AI Assist give direct funding?
Yes. Support is usually given as non-repayable contributions, but the amount depends on your project and is not a fixed grant.
Q: How long does it take to get approval?
Timelines vary. Projects move faster if you have a detailed technical plan and financials ready for your ITA.
Q: Is AI Assist funding taxable?
Non-repayable government funding is usually counted as taxable income, but it may offset R&D costs. Check with your accountant.
Q: Can early-stage SMEs with no revenue apply?
Yes, as long as you meet IRAP’s requirements and have a strong AI commercialization plan.
GrantHub tracks active AI and technology grant programs across Canada — including those that align with IRAP — so you can see which ones fit your business.
If your SME is building or using AI in a main product, NRC IRAP AI Assist should be on your radar. Start by checking your IRAP eligibility and preparing a clear plan for how your AI project will lead to commercial results before contacting an advisor.
For more information, you can also read:
GrantHub can help you see where programs like AI Assist fit into your funding plans, so you spend less time searching and more time building.
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