Research, Development & Engineering Innovation

NGen Invests $79.5M in AI Projects for Canadian Manufacturers

$29.2 million in new federal funding from the Pan-Canadian AI Strategy leverages $50.3 million from industry partners to launch 20 projects nationwide

 Next Generation Manufacturing Canada (NGen), the industry-led, not-for-profit organization that leads Canada’s Global Innovation Cluster for Advanced Manufacturing, today announced $29.2 million in new federal funding to support 20 new projects for manufacturers across Canada to adopt and scale made-in-Canada AI solutions.

The new funding is provided through the Government of Canada’s Pan-Canadian Artificial Intelligence Strategy and is being delivered to industry through NGen.

Combined with more than $50.3 million in direct investment from industry, the projects represent a total investment of $79.5 million in Canadian advanced manufacturing innovation.

The announcement was made at the N³ Summit (New. Now. Next), a gathering of the nation’s leading innovators, manufacturers, investors, and policymakers to tackle the most urgent challenges facing Canadian industry and showcase the cutting-edge technologies shaping the future of manufacturing.

The 20 projects bring together manufacturers, technology firms, and researchers to solve production-level problems – from improving safety, quality control and output – while enhancing the commercialization of Canadian artificial intelligence.

“These projects are about turning Canadian AI into Canadian productivity — keeping machines running longer, reducing waste, and preventing costly shutdowns,” said Jayson Myers, CEO of NGen. “Manufacturers are under intense pressure to control costs, build resilient supply chains, and compete globally. By putting Canadian AI directly onto factory floors, we’re helping manufacturers do that now, not years from now.”

While the new funding originates from the federal government, NGen is not a government department or agency. It is an independent, industry-led organization responsible for selecting, managing, and supporting projects that address real manufacturing challenges and deliver commercial results.

Artificial Intelligence that works on the factory floor

These projects are focused on solving real industrial challenges, including:

  • AI-powered quality inspection and traceability systems
  • Smarter and more flexible robotics for manufacturing and construction
  • Digital twins to speed up production in life sciences
  • AI-enabled equipment that can adapt in real time to changing conditions
  • Advanced 3D inspection and automated testing tools

Together, these 20 projects will support manufacturers in sectors such as automotive, defence and security tech, home building, life sciences, food production, and advanced materials. Full list of projects appended below.

Backed by the Pan-Canadian AI Strategy

The Government of Canada’s Pan-Canadian AI Strategy Commercialization Program is designed to help Canadian industry move AI out of labs and into commercial use — creating jobs, strengthening supply chains, and building long-term competitiveness.

“These collaborative projects will accelerate the commercialization of artificial and machine learning innovations that make Canadian manufacturing more efficient and cutting edge while supporting government priorities—driving prosperity, enhancing supply chain resilience and advancing our economic growth,” said the Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions. “By fostering innovation in AI through programs like the Global Innovation Clusters, the Government of Canada aims to empower Canadian manufacturers, including SMEs, to compete globally, strengthen our domestic capabilities and deliver on our ambition for productivity and secure, diversified exports.”

“These new projects announced by NGen represent a significant step forward, accelerating AI‑powered innovation and commercialization,” said the Honourable Evan Solomon, Minister of Artificial Intelligence and Digital Innovation and Minister responsible for the Federal Economic Development Agency for Southern Ontario. “The projects, which are supported by the Government of Canada, will equip Canadian manufacturers to transform traditional manufacturing processes and systems through the adoption of cutting-edge AI solutions. This will enhance efficiency and build scalable, competitive capabilities to fuel Canada’s prosperity and global leadership.”

Building Canada’s advanced manufacturing advantage

With these new projects underway, NGen continues to grow a national ecosystem of manufacturers and AI solution providers working together to modernize production, improve safety, reduce waste, and create new commercial opportunities.

Companies interested in participating in future NGen funding programs are encouraged to visit www.ngen.ca.

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