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Strategy·October 2026·8 min read

Funding for an AI project in Québec: what exists in October 2026

ESSOR, federal programs, productivity grants: an overview of what can pay for part of your project, and the traps to avoid.

The Château Frontenac at dusk, behind the snow-covered ramparts of Québec City

An AI project doesn’t have to be paid for entirely out of your own pocket. Several programs can cover part of the diagnostic or the implementation. But they change often, have strict conditions, and a mistake in sequence (starting before you apply) is enough to make an expense ineligible. Here is the state of play as of October 15, 2026.

Funding programs change often and can be suspended without notice. Always check a program’s status at the source before planning your project, and never count on acceptance before you have written confirmation.

ESSOR, the most relevant program to start with

Investissement Québec’s ESSOR program has several streams. The most useful when you are starting out is stream 1B, which covers the digital diagnostic, the plan and the selection of systems, AI component included. The aid takes the form of a non-repayable contribution of 50%, up to $20,000.

The conditions that matter, according to the April 2026 presentation guide:

  • The business is an SME with 250 employees or fewer, and at least $2.5M in revenue.
  • The service offer is in French and comes from a Québec provider.
  • If the consultant is not a member of the Consortium des auditeurs numériques (the digital auditors consortium), you must provide their résumé and a list of similar engagements.
  • The construction and finance sectors have been non-priority since March 13, 2026.
  • The program framework runs until March 31, 2027.

Trap number one: starting before you apply

No expense incurred before the application is filed is eligible. This is the rule that costs the most in practice. A business that signs a service offer, starts the diagnostic meetings, and only then discovers the program exists loses its right to aid for everything that has been done. The right order is this: you spot the program, you apply, and only then does the work begin.

The other ESSOR streams

  • Stream 1A. Feasibility study: 50%, up to $50,000.
  • Stream 1C. Implementation of the digital plan: 50%, up to $50,000. This is the logical follow-up to a diagnostic funded under stream 1B.

The 1B then 1C sequence is the one we find most interesting for an SME: half of the diagnostic is covered, then half of the implementation. The rates and caps above come from the public documentation of these programs, and it is worth validating them with Investissement Québec when you apply.

Federal AI programs

On the federal side, the NRC’s Industrial Research Assistance Program (IRAP) and the Regional Artificial Intelligence Initiative, delivered in Québec by Canada Economic Development, target SMEs that adapt or develop AI solutions. Rates are not published uniformly and the criteria evolve: this is a case where you need to speak directly with a program advisor before drawing conclusions.

Sector and municipal programs

Some programs target a specific sector. ADRIQ’s Digital Transformation Offensive, for manufacturing SMEs with 250 employees or fewer, has been described as covering 50% of fees up to $25,000, but its status is contradictory online: confirm it with ADRIQ before counting on it. At the municipal level, there are also productivity programs for businesses in a given city. Check with your city and your MRC.

How to build a solid application

  • Start with a clear document on the problem. Which process, how many hours, what costs, what measurable objectives.
  • Align the service offer with the expected deliverables. For 1B: diagnostic, digital plan, system selection, implementation plan, AI component.
  • Prepare proof of the consultant’s experience. Résumé, list of similar engagements, case studies.
  • Keep a record of everything. Filing dates, confirmations, exchanges. In case of doubt, these are what count.

What we do on our side

When a client can use a program, we say so in the proposal and structure the diagnostic to fit the expected deliverables. We don’t start anything, and we don’t bill anything, until the application is filed. And we never promise that an application will be accepted: the decision belongs to the program, not to us.

Firms that prepare funding applications or carry out digital audits are also natural partners: they do the audit, and we take care of implementing the AI. If you already work with an accountant or a financing advisor, mention the project to them early.

To understand how we structure a project and what goes into a diagnostic, see our four-step approach →

Want to know whether your project could fit a funding program? Let’s talk before anything is committed. The 30-minute exploratory meeting is free.

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