ACOA Opens a $40M AI Call. N.B. Firms Need a $1M Project to Apply

Atlantic Canadian businesses can now apply for a share of nearly $40 million in federal money to put artificial intelligence to work. The Atlantic Canada Opportunities Agency announced the call on Oct. 13. The release was datelined Moncton, and Sean Fraser, the minister responsible for ACOA, made the announcement.

The money is Atlantic Canada's slice of a national top-up. The same day, Ottawa added $500 million over five years to the Regional Artificial Intelligence Initiative (RAII), bringing the national total to $700 million. ACOA says it is now delivering more than $55 million under the program in the region.

Who can apply, and for what

The program page sets the terms:

• Applicants: Atlantic small and medium-sized businesses that meet the existing eligibility rules of ACOA's Regional Economic Growth through Innovation program.
• Project size: at least $1 million in total value, with measurable business outcomes.
• Money type: a repayable contribution, so applicants must show the project can generate returns.
• Stream 1, AI adoption: automation, predictive analytics, data modernization, process optimization, and readiness work such as change management or responsible-AI measures.
• Stream 2, commercialization and scale-up: validating, piloting and selling Canadian-developed AI products, up to a first commercial sale and beyond.
• Not covered: routine software purchases, standard ERP rollouts, general IT upgrades, training-only projects, and anything where AI isn't central.
• Deadline: expressions of interest close Nov. 20, 2026, at 11:59 p.m. ADT.

ACOA lists manufacturing, agri-food, transportation and logistics, health and life sciences, energy and natural resources, oceans and aquaculture, seafood processing and clean technology as sectors where adoption "may be particularly relevant."

The New Brunswick angle

No New Brunswick company has been named as a recipient. The call has only just opened, and ACOA has not published a provincial allocation. For now, the NB story is about who is in a position to apply.

The $1-million floor and the repayable structure point the money at established firms with real projects, not early experiments. On the commercialization side, that means NB companies that already sell AI products and need to scale. On the adoption side, it means mid-sized manufacturers, processors and logistics operators in the sectors ACOA names. Most microbusinesses and pre-revenue startups won't fit.

The call answers a gap the Atlantic Economic Panel flagged. Panel chair Don Mills told CBC that about 15% of Atlantic businesses with 10 or more employees use AI, compared with about 20% nationally. The panel's goal is 80% adoption in the region's private sector by 2035.

What to watch

ACOA hasn't said how many projects it expects to fund or how the money will be split among the four provinces. It also hasn't said when it will name the first recipients. Those announcements will show whether New Brunswick firms win a share proportional to the province's economy.

Sources

• ACOA — Atlantic Canadian businesses to benefit from an additional $40 million in federal dollars for AI (Oct. 13, 2026): nearly $40M, $55M+ RAII in region, $1M minimum, Nov. 20 close, Fraser's announcement
• ACOA — Regional Artificial Intelligence Initiative in Atlantic Canada: eligibility, streams, exclusions, repayable terms, priority sectors
• FedDev Ontario — Government of Canada expands support to adopt and commercialize AI (Oct. 13, 2026): the national $500M top-up and $700M total
• CBC News — Atlantic Canadian businesses can now apply for nearly $40M in AI funding: Don Mills on the 15% vs 20% adoption gap and the 80% by 2035 goal