2025 Intake for NGen AI For Manufacturing Challenge Now Open

Imagine a factory floor with an artificial intelligence (AI) powered “sixth sense” with spotting quality issues before they happen, optimizing production on the fly, and even handling tasks autonomously.

This isn’t sci-fiction, it’s the kind of innovation that the Next Generation Manufacturing Canada (NGen) AI For Manufacturing Challenge is looking to provide government funding for in 2025.

NGen has recently opened its 2025 call for project proposals, offering one of the biggest Canadian AI grants for manufacturers to date. As part of the federal Pan-Canadian AI Strategy, NGen will invest up to $13 million to boost advanced manufacturing capabilities by integrating AI and machine learning (AI/ML) into production.

In plain terms, Canadian manufacturers and technology companies have a golden opportunity to secure government funding and turn their AI-driven manufacturing ideas into reality.

Funding Snapshot: NGen AI For Manufacturing Challenge

The NGen AI For Manufacturing Challenge is designed to accelerate the commercialization of artificial intelligence (AI) and machine learning (ML) innovations in Canada’s manufacturing sector. If your business is looking to integrate advanced AI solutions into your manufacturing operations, here’s a quick snapshot of everything you need to know:

• Supports business-led, collaborative projects aimed at commercializing AI/ML solutions in manufacturing environments.
• Encourages collaborations between manufacturing companies and AI/technology providers.

Funding Amount

• Covers up to 40% of total eligible project costs.
• Total project budgets must range between $1.5 million and $8 million.

For example, if your project totals $5M, NGen could fund up to $2 million.

Eligible Applicants

• Projects must include at least two industry partners:
  • One manufacturing company and
  • One AI or technology provider.
• At least one partner must be a small or medium-sized enterprise (SME).
• Collaborations involving multiple manufacturing facilities or broader industry engagement are strongly encouraged.

Eligible Costs

• Development and commercialization of AI-enabled manufacturing technologies.
• Intelligent production optimization solutions (e.g., inventory management, process efficiency).
• Advanced robotics, autonomous vehicles, and automation equipment driven by AI.
• Rapid prototyping, testing, and validation of materials, products, or processes.
• Other innovative applications of AI/ML in manufacturing environments.

Timeline

• Expression of Interest (EOI) Deadline: June 17, 2025 (5:00 p.m. ET)
• Final Application Deadline: July 17, 2025
• The application process consists of two stages:
  • Submit a short EOI outlining your project concept.
  • Selected applicants will be invited to provide a detailed full application.

What Makes a Successful NGen Project?

The NGen AI For Manufacturing Challenge is tailor-made for collaborations that blend manufacturing expertise with AI innovation. Ideal teams involve manufacturers teaming up with AI specialists to develop real-world solutions. Successful projects aren’t theoretical; they lead to practical, commercial applications that improve productivity, quality, efficiency, or safety in manufacturing.

For instance, projects could focus on AI-driven predictive maintenance, autonomous robotic assembly, real-time quality control using machine vision, or even smart inventory management systems. Essentially, if your innovation uses AI or ML to tackle manufacturing challenges, your business on the right track.

Previous NGen Successes and the Bigger Picture

Previous rounds of NGen funding challenges have delivered impressive outcomes. For example, Ontario-based Cyberworks Robotics partnered with Linamar Corporation to develop AI-powered autonomous vehicles for factory floors, significantly enhancing productivity and safety.

“NGen is helping close the gap to commercial success for our home-grown AI providers. By connecting our leading-edge technology firms to our domestic manufacturing base, NGen is helping to develop a suite of unique solutions that will have tremendous commercial potential in global markets.”
– Jayson Myers, CEO of NGen

Apply for the NGen AI For Manufacturing Challenge

Is your Canadian business excited about turning your AI manufacturing concept into reality? Ryan Canada’s team of government funding experts is available to help your business through the application process from start to finish. Whether you’re seeking qualifications, clarifying eligible expenses, or fine-tuning your proposal, our team is ready to assist.

Contact our team of Ryan Canada government funding experts to discuss your project and maximize your chances of securing funding. Additionally, subscribe to our free weekly funding newsletter for ongoing updates about funding opportunities often tailored for Canadian manufacturers and innovators.