Regional support through the expanded Regional Artificial Intelligence Initiative to boost AI adoption and bring Canadian-made AI solutions to market
Southern Ontario is home to more than half of Canada's AI firms, supported by world-class research hubs, clusters of AI-enabled companies and strong commercialization networks that make the region a national driver of AI talent, innovation and investment.
Today, the Honourable Evan Solomon, Minister of Artificial Intelligence and Digital Innovation and Minister responsible for the Federal Economic Development Agency for Southern Ontario (FedDev Ontario), announced that an additional $500 million over five years to expand and enhance the Regional Artificial Intelligence Initiative is now available. This investment brings total federal funding for the national initiative to $700 million. The initiative is part of AI for All, Canada's National Artificial Intelligence Strategy, announced in June 2026, which aims to build trust, strengthen Canadian AI capabilities and sovereignty, and ensure all Canadians can use AI responsibly to build and benefit from it.
Delivered by Canada's regional development agencies, the expanded initiative will help businesses and organizations adopt and integrate AI technologies responsibly to improve productivity, competitiveness and resilience. The support will focus primarily on sectors where Canada has strong expertise and economic potential, such as health and life sciences, energy and natural resources, transportation, agriculture, manufacturing and robotics, as well as other regional strengths and priorities.
The initiative will also help Canadian AI businesses gain customers, attract investment, commercialize and scale Canadian-made products and services, while supporting regional organizations that connect businesses with the specialized support they need to adopt or commercialize AI technologies.
Peter Fragiskatos, Parliamentary Secretary to the Minister of Immigration, Refugees and Citizenship and Member of Parliament for London Centre, was at Deep Breathe Inc. to highlight the expanded initiative and to announce a FedDev Ontario investment to help the company scale and commercialize its AI-powered lung ultrasound system. The company is undertaking a more than $2-million project, with FedDev Ontario providing over $1 million. Peter Fragiskatos was joined by the Honourable Arielle Kayabaga, Deputy House Leader of the Government and Member of Parliament for London West.
By advancing a more efficient, accurate and portable alternative to traditional chest X-rays, Deep Breathe Inc.'s advanced lung ultrasound system has the potential to support faster diagnoses, reduce healthcare costs and reduce patient exposure to radiation.
The Government of Canada remains committed to helping businesses adopt and scale AI technologies, strengthening their capacity to innovate, compete and adapt in a rapidly evolving global economy. By supporting AI adoption, Canada is helping build a more resilient, productive and competitive economy while advancing the objectives of Canada's Artificial Intelligence Strategy.
