Businesses in Atlantic Canada are eligible to access nearly $40 million in federal funding for projects related to artificial intelligence. The initiative by the Atlantic Canada Opportunities Agency is specifically targeted at small and medium-sized businesses undertaking projects with a minimum cost of $1 million. These projects can involve integrating AI into company operations or creating AI solutions for the market.
According to Don Mills, chair of the Atlantic Economic Panel, this funding aims to assist businesses in overcoming the financial and resource hurdles associated with adopting new technologies. Mills highlighted the predominant presence of small and medium-sized enterprises in the private sector, emphasizing the challenges they face in investing in digitalization, automation, and AI technologies. The federal government’s support is intended to alleviate these resource constraints and facilitate access to necessary resources.
Applicants have until Nov. 20 to submit their proposals for consideration. The Atlantic Economic Panel’s recent report identified a gap in AI adoption, with Statistics Canada data revealing that only about 15% of businesses with 10 or more employees in Atlantic Canada utilize AI, compared to the national average of around 20%. The ultimate goal, as outlined by Mills, is to raise AI adoption within the region’s private sector to 80% by 2035. This ambitious target is seen as crucial for maximizing productivity gains and driving economic growth in the region.
Mills illustrated the potential of AI through his company, Cabco Technologies, which leverages AI to streamline proposal development processes. He emphasized that while AI enhances efficiency, human oversight remains essential to ensure accuracy.
The significance of AI adoption for economic growth was underscored by Mills, who highlighted the need for accelerated economic expansion in Atlantic Canada to sustain public services and address escalating debt and deficits. Falling behind in AI adoption could exacerbate these challenges, making it harder to attract investment and talent to the region.
To support businesses in navigating the AI landscape, Mills recommended engaging AI specialists to identify opportunities for incorporating the technology. Universities in the region, such as Dalhousie University, Memorial University, and the University of New Brunswick, are collaborating to develop AI resources to facilitate this transition.
Looking ahead, Mills advocated for a more ambitious entrepreneurial culture in Atlantic Canada, noting the increasing trend of newcomers launching businesses with broader market aspirations. Approximately 30% of new startups in the region, led by newcomers, are targeting national or international markets, signaling a positive shift in the entrepreneurial landscape.
In conclusion, the federal funding for AI projects presents a significant opportunity for Atlantic Canadian businesses to enhance their operations, drive innovation, and contribute to the region’s economic growth trajectory.
