Government of Canada expands support for artificial intelligence adoption and commercialization in southern Ontario
Regional support through the expanded Regional Artificial Intelligence Initiative to boost AI adoption and bring Canadian-made AI solutions to market
October 13, 2026 – London, Ontario
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.
Quotes
“The question is not whether AI will reshape our economy. It is whether Canada will capture the opportunity. The Regional Artificial Intelligence Initiative will help Canadian businesses adopt AI and Canadian AI firms scale from here, so that the technology, talent and economic value we create remain anchored in Canada and under Canadian control.”
– The Honourable Evan Solomon, Minister of Artificial Intelligence and Digital Innovation and Minister responsible for the Federal Economic Development Agency for Southern Ontario
“Deep Breathe Inc.’s AI-powered lung ultrasound system demonstrates how local companies are developing solutions to improve patient care while creating economic opportunities here at home. This investment will help this innovative London company scale its technology, expand into new markets, and contribute to the continued growth of our region’s life sciences sector.”
– Peter Fragiskatos, Parliamentary Secretary to the Minister of Immigration, Refugees and Citizenship and Member of Parliament for London Centre
“The expansion of the Regional Artificial Intelligence Initiative will help more Canadian businesses adopt and scale AI solutions that drive growth and innovation. Combined with today’s investment in Deep Breathe Inc., we are helping strengthen London’s position as a leader in health and AI innovation.”
– The Honourable Arielle Kayabaga, Deputy House Leader of the Government and Member of Parliament for London West
“FedDev Ontario’s support is helping Deep Breathe accelerate the commercialization of our AI-enabled ultrasound technology across hospitals, emergency medical services and military medicine. This investment will help us bring advanced ultrasound capabilities closer to the point of care, giving more clinicians the tools to make faster, informed decisions wherever care is being delivered.”
– Dr. Rob Arntfield, CEO and Founder, Deep Breathe Inc.
Quick facts
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The Regional Artificial Intelligence Initiative (RAII) helps businesses and organizations adopt artificial intelligence, supports the commercialization and scale-up of Canadian-made AI solutions, and strengthens regional AI ecosystems across Canada.
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The initiative will also support broader access to the benefits and opportunities of AI for Indigenous Peoples, youth, underrepresented groups and communities across Canada.
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Applications are being accepted in southern Ontario until January 19, 2027. Proposed projects with eligible costs before March 31, 2027, must be submitted by November 24, 2026.
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AI for All, Canada’s National Artificial Intelligence Strategy, supports accelerated AI adoption among Canadian businesses, with a particular focus on SMEs, and includes measures to expand access to financing, AI expertise and secure computing infrastructure, including through the LIFT program, the Compute Access Fund and other business supports such as the expanded RAII.
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Incorporated in 2020, Deep Breathe Inc. is a medical technology company that has developed an AI platform that can analyze lung ultrasound images, helping healthcare providers diagnose lung conditions more quickly and effectively at the point of care.