If you’re working on an AI project to improve supply chains, Scale AI funding can cover up to half of your project costs. Scale AI is one of Canada’s Global Innovation Clusters. It is backed by the federal government. The program focuses on using AI to improve value chains in areas like manufacturing, retail, transportation, and logistics. The application process is competitive and structured. Knowing the rules before you start can save you months of work.
Scale AI is a federal supercluster that funds collaborative AI projects. These projects must boost productivity across supply chains. The program supports work that goes beyond internal research and delivers measurable benefits to several organizations in a value chain.
Key program facts:
Scale AI does not fund solo projects. Every application must involve multiple partners and show how AI adoption will expand across an industry, not just one company.
To qualify for Scale AI funding, your project must meet all of these conditions:
Strong alignment with Scale AI’s strategy
Your project must use AI to improve productivity across a value chain. Examples include forecasting, logistics optimization, demand planning, or supplier coordination.
A collaborative consortium
Projects must include more than one participating entity with clear roles and shared benefits.
At least one SME partner
Your consortium must include at least one small or medium-sized enterprise with fewer than 500 full-time employees.
Incremental AI development
The work must create new or improved AI capabilities, not just use off-the-shelf software.
Executive endorsement
The application must be endorsed by your CEO or senior executive, showing organizational commitment.
Ready-to-launch timeline
Projects must be able to start soon after Scale AI’s investment decision.
No double funding
The project must be new and cannot already be funded by another government entity.
Using tools like GrantHub’s eligibility matcher can help you quickly check if your business and partners meet these basic requirements before you start building a consortium.
Applying for Scale AI funding is more like preparing a major investment proposal than a typical small-business grant.
1. Build your consortium early
You’ll need committed partners. This means at least one SME and often large companies, researchers, or technology providers. Letters of commitment are essential.
2. Define the value chain impact
Scale AI wants projects that improve performance across a whole supply chain. Be specific about productivity gains, cost savings, or service improvements.
3. Prepare a detailed project plan
Your application must clearly outline:
4. Secure executive sign-off
A formal endorsement from your CEO or an executive is mandatory.
5. Submit through Scale AI’s intake process
Applications are submitted directly to Scale AI. They are reviewed for strategic fit, technical merit, and economic impact.
After approval, funding is usually reimbursed based on eligible expenses and reporting milestones. For more on what happens after approval, see What Happens After You’re Approved for a Grant? Reporting and Reimbursement Explained.
Applying with a single company
Solo projects are not eligible. Lack of true collaboration is one of the fastest ways to be rejected.
Vague AI claims
Saying “we use AI” isn’t enough. Scale AI expects clear technical detail and incremental innovation.
Ignoring SME requirements
If your consortium does not include an SME under 500 FTEs, the application will not proceed.
Stacking incompatible funding
Projects already funded by another government program are not eligible for Scale AI support.
Q: How much funding can Scale AI provide?
Scale AI can fund up to 50% of eligible project costs on a non-repayable basis. The remaining costs must be covered by project partners.
Q: Does my project need multiple partners to qualify?
Yes. All Scale AI projects must be collaborative and include more than one participating organization.
Q: Is an SME partner mandatory?
Yes. At least one SME with fewer than 500 full-time employees must be part of the consortium.
Q: Can Scale AI funding be combined with other grants?
No. The project must be new and not already funded by another government entity.
Q: What types of AI projects are prioritized?
Scale AI prioritizes projects that use AI to improve productivity across value chains, with measurable industry-wide benefits.
GrantHub tracks hundreds of active grant programs across Canada — check which ones match your business profile, including alternatives if Scale AI isn’t the right fit.
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