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Ottawa backs Atlantic Canada AI with CAD $8.5M fund

Wed, 4th Mar 2026

The Canadian federal government is providing more than CAD $8.5 million for 40 projects to support artificial intelligence adoption across Atlantic Canada. The funding targets small businesses, universities, as well as community organisations.

The Atlantic Canada Opportunities Agency (ACOA) is administering the funding for projects in Nova Scotia, New Brunswick, Newfoundland and Labrador, and Prince Edward Island. Some projects will receive repayable funding while others are listed as "non-repayable" in a more typical grant format.

The announcement was made in Halifax during a visit to Volta, the innovation hub, by Evan Solomon, Canada's Minister of Artificial Intelligence and Digital Innovation. It was delivered on behalf of Sean Fraser, the minister responsible for ACOA.

Two funding streams

The funding comes through two federal programs: the Regional Artificial Intelligence Initiative, part of Canada's national AI strategy, and the Regional Economic Growth through Innovation program, which, in this package, supports the adoption and development of generative AI applications.

Ottawa has allocated CAD $200 million over five years to the Regional Artificial Intelligence Initiative, delivered through Canada's regional development agencies. The program backs AI innovation linked to regional strengths and adoption in sectors including agriculture, healthcare, clean technology, and manufacturing.

In Atlantic Canada, ACOA is delivering CAD $15.7 million under the initiative. The latest approvals fall within that envelope and include projects focused on innovation, digital transformation, and supply-chain and market expansion.

Business adoption

Across the 40 projects, funding supports AI-based sales tools for small firms, automation in rural industries, scaling AI systems for export and certification, and training and digital skills for workers.

Several awards focus on commercialisation and market development. In Halifax, FLOQER received CAD $294,000 in repayable funding to scale an AI-powered sales platform and pursue compliance work to enter new markets. In St John's, trophi.ai received CAD $950,000 in repayable funding for marketing and product development tied to revenue growth.

Other projects apply AI in operations. In Shippagan, Université de Moncton's campus received CAD $93,000 in non-repayable funding to optimise production lines using AI and collaborative robotics. In Fredericton, Chick Pick received CAD $400,000 in non-repayable funding linked to the commercialisation of AI-powered chick-sorting equipment.

Healthcare features in multiple projects. Liquid Health Data in Fredericton received CAD $50,000 in conditionally repayable funding to develop an AI-driven system for financial operations in healthcare. In Halifax, Kardio Diagnostix received CAD $200,000 in repayable support for product development and market research related to Health Canada and FDA approvals.

Skills and ecosystem

Some of the largest non-repayable allocations go to organisations working with multiple firms and students. Volta Labs received CAD $557,000 to foster AI and digital technology adoption among small and medium-sized enterprises in Nova Scotia. Université de Moncton received CAD $1.82 million to encourage AI adoption among small and medium-sized enterprises.

Dalhousie University received CAD $200,000 in non-repayable funding to support the AI2Market pilot program, which links AI training with entrepreneurship and company formation. Digital Nova Scotia received CAD $387,000 for an AI training and micro-credentialing program, plus a further CAD $200,000 to help Nova Scotian SMEs adopt and integrate AI.

Community and inclusion initiatives are also included. The Canadian Blk Women in Excellence Society received CAD $60,750 in non-repayable support for business accelerator programs focused on AI tools, business strategies, and mentorship for Black women entrepreneurs.