Closed: Regional Artificial Intelligence Initiative – Adoption Pillar 2: Application guide for businesses

6. Application guide for businesses

On this page

• Purpose of this guide
• Applicant Information
• Authorized Project and Financial Contacts
• Project Information
• Project Results
• Project Budget
• Financial Information
• Certification
• Confidentiality, Reporting and Visibility Requirements
• Other
• Annex A – Project Indicator Definitions
• Annex B – Cost Categories

Purpose of this guide

The guide helps your business complete FedDev Ontario's Application for Funding (For-Profit Applicants) and the Supplemental Form. This guide explains how to complete each section of the form and how to tailor your responses for the Regional Artificial Intelligence Initiative (RAII)'s Adoption pillar.

Your application must be received within the intake period or your application cannot be considered.

Blank spaces count against character limits in the application form.

Applicant Information (Q1-18)

This section of the Application for Funding requires all applicants to provide details on their business, including business name, sector and other descriptive information.

When completing this section, please note the following:

• In question 1, provide your business legal name as it appears on your articles of incorporation document(s). Do not include your own name. If your company conducts business publicly by another operating name, please state this in question 2.
  • In question 5, if you are an Indigenous applicant, a CRA business number is not mandatory to apply and you may, instead, include your 3-digit band number in question 6. If you are an Indigenous applicant with a CRA business number, please enter it into the field provided.
• In question 8, we want a full picture of your company, its founders and your business operations. Answer all parts of the question. Describe your market, how your business serves its customers, and include details on your company history before incorporation, if applicable. Clearly outline how your firm is managed and governed now and in the future. Include names of owners and their respective percentage of ownership. Tell us about your company's growth and your growth opportunities, including revenue growth, markets you have entered, funding rounds completed, pre-orders, partnerships with other organizations, and customers acquired. Provide background information on key shareholders, board of directors and your management team. To supplement this information, submit the following documents using the "Add Attachments" button on the Application for Funding:
  • A copy of the company's incorporation document(s), including any amendments and information on ownership (names and percentage of ownership).
  • Biographies of key management team and project team members.
  • If applicable, documentation that demonstrates that your company has previously received or currently receives support from a business accelerator, an incubator, an angel or venture capital investor and/or other relevant sources.
  • if applicable, indicate and describe support that your company may have received from the Canadian Intellectual Property Office (CIPO) or other organizations or government agencies, to assist your company to protect, maintain, or commercialize your company's intellectual property.
   

  If available, submit a copy of your company's IP strategy. Please note: if your project is approved for funding and includes the creation, development, demonstration, refinement, and/or commercialization of IP, you will be required to:

  • have, implement, and maintain an IP Strategy as a condition of receiving the funding under this initiative.
  • protect any IP you will create, demonstrate, refine, or commercialize as a result of FedDev Ontario funding, including not agreeing to exclusive or irrevocable licenses of project IP and/or sublicensing agreements, unless your company will benefit from such an agreement.
• In questions 11-13, indicate the current number of employees for each category. Do not include people employed by suppliers or contracted services.
  • Full-time equivalent employees (FTEs) working in Canada are those who work a minimum of a 35-hour work week.
  • Part-time equivalent employees (PTEs) in Canada are those employees who work less than a 35-hour work week.
  • Number of employees outside of Canada is the total number of employees (full-time and part-time) working for the business outside of Canada, if applicable.
     

    Note: The RAII Adoption pillar requires your company to have at least 5 employees who are FTEs. Freelancers and contractors do not count as FTEs. The business owner can count if they are paid wages from the company. Your company may be deemed ineligible without this information.

    Calculating FTEs: If you have part-time employees, please explain in question 8 or via an attachment how their combined hours add up to full-time equivalent(s). Freelancers and contractors do not count as FTEs. The business owner can count towards the FTE if he or she is paid wages.

Authorized Project and Financial Contacts (Q19-20)

We are looking for the names and contact information for the primary contacts for communicating with FedDev Ontario on matters involving the application and project financials (if they are different). Ideally, the authorized contact person is a signing officer for the company who has full authority to bind the company through funding agreements. If the person is not a signing officer of the company, confirmation of that person's right to represent the company may be required. Neither the Authorized Project Contact nor the Financial Contact can be a consultant or third party.

The applicant and/or any parties authorized by the applicant to speak to FedDev Ontario on their behalf must comply with the Lobbying Act throughout the application process and the life of any funded project. Before communicating with FedDev Ontario about an application, please review the provisions of the Act. For more information on lobbying and the Lobbying Act, consult the Office of the Commissioner of Lobbying of Canada.

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Project Information (Q21-35)

This section provides a detailed account of the proposed project, including duration, location of activities and overall plan. When completing this section, please note the following:

• In question 22, enter "Regional Artificial Intelligence Initiative – Adoption" or "RAII Pillar 2" in this field.
• In questions 23-24,  the start date cannot be before the date the application intake closes. On average, projects span between 1-2 years in duration.
• In question 26, indicate whether any of the proposed project's activities are expected to occur on federal lands as defined in the Impact Assessment Act, 2019. Activities on federal lands could be subject to additional requirements.
  
  Depending on the nature of your project activities, you may be expected to complete all federal requirements related to the Impact Assessment Act 2019, and the duty to consult with Indigenous Groups as set out in Section 35 of the Constitution Act, 1982. To find out more, visit the Government of Canada and the duty to consult.
• In question 28, please describe your project plan by focusing on the AI or AI-driven solution you will adopt or integrate into your operations during this project. Referencing the eligible activities listed under Section 2: Who can apply, include detailed project activities that you are seeking funding for and that are required to successfully achieve your expected outcomes. In your response, also:
  • demonstrate how the adoption of AI is the focus of your project.
  • describe the AI or AI-driven solution that you will adopt, including its functionalities, and the type of AI technology/application the solution uses (e.g., machine learning, computer vision, voice recognition, large language models, etc.).
  • provide a brief description of the commercial availability of this technology, including how long the technology has been in the marketplace.
  • describe the steps you will take to integrate the AI or AI-driven solution in your operations.
  • indicate whether any project activities (and costs) are expected to be incurred outside of Canada.
  • provide evidence that you hold or will obtain rights to IP to allow your project to be carried out (e.g., licenses you will obtain from third parties).
  • if applicable, outline any steps you have taken or will take to manage, protect and commercialize any IP that is created, demonstrated, refined, or commercialized while carrying out project activities.
   

  Please note, FedDev Ontario may support costs related to IP. See cost categories for details.

  For assistance on how to manage, protect, and commercialize your company's IP, consult the Canadian Intellectual Property Office.

  The Supplemental Form, which you must complete and attach, asks further questions related to your project and organization's alignment with responsible AI and relationship with other federal AI support programs. Note: Within this form, questions related to AI commercialization are not likely to be applicable to projects under this pillar of RAII.

  You may also submit a project plan in the format of your choice along with logical and physical diagrams, device and/or apparatus drawings/photos, or other relevant documentation by using the "Add Attachment" button on the application form.

Definition: Artificial intelligence

Artificial Intelligence (AI) relies on and learns from vast data sets and algorithms to perform tasks that would typically require human intelligence, including visual perception, speech recognition, and autonomous decision-making and improvisation.

• In question 29, briefly describe the objective and expected outcomes of your project, and how your project fits the program goal to improve process efficiency, productivity, and/or competitiveness through adoption of AI or AI-driven solutions. This section should serve as a rationale for why this project should receive funding. In providing your response:
  • describe how and the extent to which the proposed project supports the adoption of AI products, applications, and solutions in one or more of the priority sectors or use cases listed below. Be as specific as possible.
  • describe how this project contributes to the company's long-term vision and how the project addresses your business's challenges or supports a critical opportunity for your business.
   

  Pillar priorities – Adoption of transformative AI in one of the following settings:

  • Healthcare and Life Sciences (e.g., imaging and diagnostics, drug design and discovery, precision medicine);
  • Enterprise Solutions (e.g., financial and business services, pricing and risk analysis, service optimization);
  • Manufacturing (e.g., auto, aerospace, steel, chemicals, smart manufacturing, machine learning, robotics); and,
  • Mobility (e.g., logistics, automated drone delivery, automated warehouse, route optimization).
• In question 30, indicate and provide details on the clean growth benefits of your project, including environmental benefits that will be realized and/or information on clean technologies being developed, commercialized or adopted. If applicable, indicate how you will mitigate the environmental impacts (e.g. energy or water use) of your AI technology. Where possible, provide metrics to quantify the impact (e.g., percentage of energy or water saved, amount of greenhouse gas emissions reduced, amount of waste diverted from landfill, amounts of air pollutants reduced, etc.). Include a timeframe over which these benefits will be realized.

Definition: Clean growth

Clean growth is about fostering economic growth that reduces environmental impacts and strengthens resilience to a changing climate.

This is done through initiatives that promote and support clean growth outcomes (e.g., emissions reductions, waste reduction, sustainable jobs, etc.). This can include the introduction of practices to reduce carbon footprint or waste, the adoption or commercialization of clean technologies, circular economy initiatives, greening communities, and supply chain localization.

• In question 31, provide information about diversity, equity, and inclusion at your company.

  The Government of Canada is committed to diversity, equity, and inclusion so that all Canadians have the opportunity to participate in and contribute to the growth of the economy. Gender, equity, and diversity data collected may be used for research, statistics, program and policy evaluation, risk management, strategy development, reporting, and gender-based analysis (including GBA+). This information can help the Government of Canada monitor progress on inclusive access to federal support programs and services, identify and remove barriers, and make changes to improve inclusive access. Aggregate and anonymous data may be shared with other federal organizations and published for reporting and monitoring purposes.

• Question 31 has 3 components:
  1. The first column of the table is a voluntary self-declaration to indicate if your company is led or majority-led by 1 (or, if applicable, more than 1) underrepresented group. This data is used for statistical purposes only. Note: selecting all options is not necessary and may skew the data. Choose the group or groups that most closely align with your company's leadership composition. If none apply, or you wish not to self-declare, this section can be left blank.
     Note: "led or majority-led" describes companies where members of underrepresented groups are involved in long-term control and management of the business or organization and play an active role in both strategic and day-to-day decision making.
  2. The second column seeks to understand whether the project will benefit or encourage the inclusion of 1 or more underrepresented group. Select all that apply but note the responses to this column are linked to the third section of this question, where applicants must explain how their organization will influence federal inclusive growth priorities for each group selected.
  3. In completing the third section, describe in detail how your organization and project promotes diversity, equity and inclusion, and include any supporting documentation with attachments, if applicable. Please explain both ongoing and planned methods in which your organization is addressing the representation of underrepresented groups. Examples of initiatives could include an organizational diversity plan or policies and participation in the 50-30 Challenge. Describe relevant results and the timeframe in which they will be achieved (for example: 75% of jobs created and maintained through the project to be staffed by members of underrepresented groups). Refer to the guidance in question 36 when describing results.

The 50-30 Challenge

FedDev Ontario continues to champion the 50-30 Challenge, where applicants are encouraged to take voluntary actions to achieve gender parity (50%) and significant representation (at least 30%) of underrepresented groups on their boards and in senior management. If you are already a participant, please include this on your application. If you are not yet a participant but wish to join, please note this on your application. Refer to the 50-30 Challenge.

• In question 32, list any key project partners and their role(s) in the project. These may include other businesses (suppliers or customers), financial partners, business accelerators and incubators or other government departments invested in the completion and the success of the project. Describe, in detail, the nature of these partnerships.
  
  Note: You will also be asked to describe the financial contributions to be made and the status of each contribution (e.g., confirmed, pending confirmation, to be requested) for each identified key project partner in the Project Budget section. If your project is approved, you will need to confirm all sources of the matching funding within 30 days of being notified.
• In question 33, describe the market opportunity that your project will address and how your project will help differentiate you in the marketplace within Canada and internationally. Include a list of your major competitors and identify if your project will impact other businesses in Canada. Describe if, how and the extent to which you have a competitive advantage over competition. Refer to Section 1: What we support and Section 2: Who can apply for the program priorities and eligible project activities, respectively.
• In question 34, indicate key risks associated with the project (e.g., financial, trade, regulatory, and any implementation risks that may impact a successful project outcome, including related to responsible AI) as well as potential risk to the broader economy (e.g., workforce impacts of the AI or AI-driven solution). Also, please identify risk mitigation measures for the project.
  • Specifically related to responsible AI:
    • The Supplemental Form includes a dedicated question on your business's strategy and alignment with responsible AI and applicable legislation. Use that form to answer whether or not your company has a strategy in place to ensure that it adopts and if applicable, develops AI technologies ethically and responsibly. Describe your plan, including project activities, to address risks related to the relevant principles of the responsible development and use of AI. At a minimum, you must describe human oversight and accountability frameworks and measures to address cybersecurity risks (e.g., plans, policies, and governance structures in place to prevent unauthorized use of, and access to, data you collect and use). Where relevant, identify measures to support other elements of responsible development and use of AI, including data privacy and governance, fairness and equity, and safety. To support your response, you may submit your company's cybersecurity strategy, certifications, etc.
    • as relevant, demonstrate how your company has and will comply with current and anticipated applicable legislation and/or regulatory requirements in Canada and target markets, such as the Personal Information Protection and Electronic Documents Act
  • Please note:
    • FedDev Ontario may support costs related to the responsible development and use of AI (e.g. costs related to cybersecurity). See cost categories for details.
    • If your project is approved for funding, you must attest to your company's commitment to responsible development and use of AI.
• In question 35, illustrate why financial assistance is required for this project (i.e., to quickly seize an untapped market opportunity) and explain what the impact would be if the requested funding was not received. This section could include the broader impact(s) on the business, sector or region if funding is not received. Be sure to include how this funding would impact the sustainability of your business both for the duration of the project and after project completion and how the project improves the future outlook for your business.

Project Results (Q36)

All values provided under this section must be measurable and verifiable. Recognizing that not all indicators apply to every project proposal, applicants can select "No" for any of the options and will not need to complete the corresponding "Amount" column.

All amounts reported in this section must be measured from the estimated Start Date of the project to the End Date of the project. Any details provided in this section should be as realistic and achievable as possible, as you will be asked to report on these results throughout the project's duration. Any benefits that fall outside of this timeframe but the applicant wishes to highlight should be included in question 29.

Please refer to Annex A for definitions of each indicator.

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Project Budget (Q37-38)

By completing this section, you are providing FedDev Ontario with the key project financing information needed to assess whether the resources requested are appropriate for further review, including:

• estimated total project costs, how much funding you are requesting, and a breakdown of this funding by federal fiscal year and cost category
• whether you have secured your portion of the financing, and the source(s) and status of any other funding

Information provided in this section may be supported with a more detailed project budget and breakdown of costs submitted as an attachment. If your project is approved, you will need to confirm all sources of the matching funding within 30 days of being notified.

Important notes:

• All eligible costs must be reasonable and directly related to eligible project activities. FedDev Ontario may support project costs related to management, protection, or commercialization of project IP, and cybersecurity measures that will support the adoption of AI technology. Please see Annex B for more details on eligible and ineligible costs.
• State costs in Canadian dollars (CAD) over the span of the project duration (Note: fiscal year is defined as April 1 to March 31).
• Costs incurred before the application intake deadline cannot be considered eligible costs.
• If there are no costs associated for a cost category, enter "0" in the amount column for that cost category.
• All projects and associated costs must be completed by the estimated End Date of the project.

Financial Information (Q39-41)

This section allows FedDev Ontario to assess your company's capacity to undertake the proposed project, including:

• If you have received government funding from any level (federal, provincial, municipal) in the last five years (question 39) and, if applicable, use some of the space provided in question 40 to explain the status and outcomes of this funding.
• Include an explanation of the status of any funding related to this project, including support or financing from accredited angel or venture capital investors (e.g., confirmed, pending confirmation, to be requested). Explain if funding from any sources is pending, confirmed or is contingent on receiving FedDev Ontario funding or any other requirements.
• Your company's financial performance (e.g., assets, liabilities, cost structure, revenue streams). For pre-revenue firms, indicate funding received from an accredited angel or venture capital sources and identify cash flows during the project.
  • Note: in-kind contributions and cash from forecasted revenue cannot be leveraged as a source of project financing.
  • Note: forecasted revenue cannot be leveraged as a source of project financing.
  • Note: the information provided is important to demonstrate the ability to repay the contribution.
• Include any information regarding the project budget that was not reflected in the application form. Include sales growth and financial projections as applicable to the project activities.
• As FedDev Ontario funding does not support ongoing operating costs, please indicate cash flows and plans to support your operations post-project, including jobs created and maintained post-project, if applicable.

Certification

Please ensure the certification section is completed by the authorized contact, who is also a member of your organization with signing power/authority to enter into a legally binding agreement with FedDev Ontario. Note:

• Certification is the act of signing a formal document to confirm that you are bound by its contents.
• Making a false statement or providing misleading information may result in the Minister exercising any remedy available to them at law.
• You must review each statement and sign the Certification; this includes certifying that the applicant is not engaged in any illegal or criminal activity and does not promote violence, incite hatred or discriminate on the basis of sex, gender, identity or expression, sexual orientation, colour, race, ethnic or national origin, religion, age, or mental or physical disability, contrary to applicable laws.
• Checking 'I Agree' provides an authorized signature of your organization certifying both the information provided on the application and that you are duly authorized to submit the application on the organization's behalf.
• Funding for the purposes of the project should not be knowingly used, either directly or indirectly, in a manner that breaches economic sanctions imposed by Canada as described under the Special Economic Measures Act. Information on Canadian sanctions and export and import controls can be found at the following:
  • Canadian sanctions (international.gc.ca)
  • Types of sanctions
  • Export and import controls

Confidentiality, Reporting and Visibility Requirements

FedDev Ontario may consult external experts as part of the application assessment process (for example, other government departments and agencies) and share applicant information with such experts. Any confidential or proprietary information should be marked as such. In addition, all information provided by the applicant is subject to the Access to Information Act and Privacy Act.

If approved for funding, the names of recipients, amounts awarded and project descriptions will be disclosed publicly. Recipients will also be required to submit reports and other statements that provide details on project performance and comply with official languages and visibility and funding acknowledgement requirements in the contribution agreement.

Other

FedDev Ontario reserves the right to modify these guidelines at any time without notice and may waive certain requirements on an exceptional basis.

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Annex A – Project Indicator Definitions

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Annex B – Cost Categories

Eligible project costs must be reasonable, verifiable, incremental, and directly support project activities. Eligible project costs do not include ongoing costs of production or operations.

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