Ontario Government Funding for AI: Grants for Small Businesses in 2026

Ontario small businesses have more AI adoption funding options than most provinces — and in May 2026, that landscape got better. The Ontario government announced an additional $5 million for its Digital Competence Centre program, delivered in partnership with the Ontario Centre of Innovation (OCI), to help businesses modernize operations and adopt digital technologies including artificial intelligence.

This article covers what's currently available in Ontario, how the programs stack, and what to pursue first based on your business size and goals. Program details and intake windows change — verify current status at the primary sources linked below before applying.

What Are Ontario's Main AI and Digital Adoption Grants?

The Digital Competence Centre (DCC) is the most accessible starting point for most Ontario small businesses. Delivered by the Ontario Centre of Innovation, the DCC runs three distinct grant streams:

• Digital Modernization and Adoption Plan (DMAP) — A matched grant of up to $15,000 to help businesses plan for technology investments, including AI adoption strategies. This is a planning grant: it funds the assessment and roadmap work before you make major purchases.
• Technology Demonstration Program (TDP) — A matched grant of up to $50,000 to fund the actual purchase and installation of new technologies that support business growth. AI tools — including voice automation, scheduling, CRM, and workflow AI — are eligible technology categories. This is the most significant direct grant currently available to Ontario small businesses for technology adoption.
• Retail Modernization Project Grant (RMPG) — For eligible small retailers with 50 or fewer employees, a matched grant of up to $5,000 to adopt technologies including point-of-sale systems, inventory management, CRM, and AI tools.

Since the DCC launched in 2022, it has provided over 800 grants to Ontario businesses. The May 2026 injection of $5 million extends the program's capacity to support nearly 450 more businesses. Check current intake status at oc-innovation.ca — programs can close when funding is fully allocated.

What Does FedDev Ontario Fund?

FedDev Ontario is the federal regional development agency for southern Ontario and operates separately from OCI's provincial programs. Where the DCC targets smaller businesses with relatively modest grants, FedDev Ontario tends to support larger projects — business scale-up, technology adoption at greater scale, and ecosystem development.

FedDev Ontario's Business Scale-up and Productivity stream can fund AI commercialization and productivity investments for Ontario businesses that have grown beyond the startup stage. Projects can include hiring, technology infrastructure, market expansion, and productivity-enhancing AI implementation. This is a repayable contribution for most for-profit recipients, not a grant — but the terms are typically favourable. Visit feddevontario.gc.ca for current program intakes and eligibility.

Federal Programs Available in Ontario

Ontario businesses can access all federal programs in addition to provincial ones. Two are particularly relevant for AI adoption:

NRC IRAP AI Assist — The National Research Council's AI Assist stream funds SMEs integrating AI into their products or services. It's advisor-led (not a direct application), and the Industrial Technology Advisors in Ontario are active. Up to 75% of eligible project costs. Contact NRC IRAP at 1-877-994-4727 or nrc.canada.ca.

SR&ED tax credits — For Ontario businesses developing AI technology rather than just adopting it. Budget 2025 doubled the refundable credit cap to $2.1 million annually and made cloud computing costs eligible. See our SR&ED and AI guide for details.

Stacking Programs: Getting More Than One Source of Funding

Ontario's funding landscape allows for meaningful stacking. A small business adopting AI could legitimately combine:

• A DCC DMAP grant (up to $15,000) for planning
• A DCC TDP grant (up to $50,000) for implementation
• NRC IRAP AI Assist for advisory support and project co-funding
• SR&ED credits if any of the work involves custom development

Programs have their own rules about what costs can be claimed where, and stacking requires careful coordination — but it's a legitimate strategy that Ontario businesses should know is available.

What About Municipal and NGO Programs in Ontario?

Beyond provincial and federal programs, many Ontario municipalities and NGOs offer additional support:

• The City of Toronto's business support programs and sector partnerships
• BDC (Business Development Bank of Canada) advisory services and loans for technology investment
• Communitech and other regional innovation hubs that connect businesses to funding and technical assistance
• SCALE.AI for supply chain AI projects (a federally-funded industry supercluster)
• Sector-specific programs in healthcare, agriculture, manufacturing, and clean tech

Eligibility and intake windows for these programs vary and change frequently. Many are not widely advertised. A business in Ontario has access to one of the deepest funding ecosystems in Canada — the challenge is knowing where to look.