
Canada's AI Adoption Accelerates, Driving Growth for Industries: Nearly $100M Invested in 23 New Projects Through SCALE AI's Latest Funding Round
While SCALE AI is funding projects from coast to coast, today's announcement supports initiatives led by businesses in Quebec adopting AI technologies, demonstrating a remarkable diversity of use cases, ranging from planning and scheduling aircraft maintenance, forecasting retail demand and optimizing inventory, to deploying AI-driven sorting lines in recycling centres, among other innovative applications.
Mobilizing both public and private capital is essential to scaling transformative technologies like AI, as it helps de-risk major innovation investments and creates the right conditions for businesses to adopt cutting-edge technologies with confidence. The projects announced today were financed with a 2-to-1 ratio of private investment to public funds, reflecting a clear understanding among businesses of how AI can accelerate their growth and productivity.
The announcement took place at SCALE AI's offices in the presence of Evan Solomon , Minister of Artificial Intelligence and Digital Innovation. The event also offered the Minister a platform to engage and discuss with major enterprises integrating AI into their operations, alongside SMEs and startups driving innovation through the development of Canadian AI technologies.
This recent round of investments reinforces Canada's AI ecosystem by supporting homegrown AI developers to grow and scale, and enabling the broader AI ecosystem to bring innovations to market and compete globally.
Quotes
"AI is one of the most powerful drivers of Canada's future economy. By investing in real-world applications through SCALE AI, we're turning Canadian innovation into productivity—across manufacturing, transport, and beyond. This is how Canada leads: by building, adopting, and scaling homegrown solutions."— The Honourable Evan Solomon, Minister of Artificial Intelligence and Digital Innovation, and Minister responsible for the Federal Economic Development Agency for Southern Ontario
" Canada is a pioneer in artificial intelligence, and today we are turning our early innovations into competitive advantages for Canadian industry. The federal government is working with partners like SCALE AI to grow our economy through the implementation of AI solutions across many sectors, spurring growth and attracting investment to Quebec and across Canada ." — The Honourable Mélanie Joly , Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions
"This announcement clearly illustrates the accelerating adoption of AI across Canada . AI is no longer confined to a small circle of tech players — it is now emerging as a strategic lever across an increasingly diverse range of sectors. New industries are boldly embracing this transformation, driven by ambitious use cases and the growing uptake of a wide spectrum of technologies, from proven systems to the most advanced generative AI solutions. This momentum, which SCALE AI is actively supporting through this funding round, reflects a new level of maturity in our ecosystem and confirms that AI is becoming a cross-cutting and lasting driver of competitiveness for the Canadian economy." — Julien Billot , CEO of SCALE AI
"We are witnessing the outstanding strides Canadian industry has made in leveraging AI across all industries. AI solutions and products have unparalleled potential to reshape business models, refine decision-making processes, and empower workforces to unlock the full potential of organizations. Our vision is clear: to create a future where AI becomes an essential pillar of every Canadian business strategy. Canada is well placed to play a leading role in this massive technological revolution, thanks first and foremost to the excellence of our research and talent. SCALE AI works at the intersection of business and academia, building the connective tissue of Canada's AI ecosystem. By co-investing in high-impact projects and nurturing a dynamic network of startups, service providers, researchers and adopters, SCALE AI is accelerating the commercialization of AI." — Hélène Desmarais, Co-Chair of the Board of Directors, SCALE AI
23 New Projects Representing Investments of $98 .6 Million
To learn more about the projects, click here.
→ Precision Immunology (Phase 1 & Phase 2)
Partners: CellCarta, Epitopea, Aramis Biotechnologies, GENAIZ, York University
SCALE AI investment: $3.7 million
Total investment: $11.5 million
→ Optimizing the Steel Supply Chain With AI
Partners: Groupe ADF Inc., DPHV – D'Aronco, Pineau, Hébert, Varin, Nova steel, Vooban
SCALE AI investment: $3.2 million
Total investment: $12 million
→ Strategic Aftermarket Modelling (SAM) – (Phase 1 & Phase 2)
Partners: Pratt & Whitney Canada Inc., McKinsey & Company, Vooban, Moov AI, Alberta Machine Intelligence Institute (AMII)
SCALE AI investment: $3 million
Total investment: $13.9 million
→ NIC™: Mining Operations Management Platform
Partners: ArcelorMittal Exploitation minière Canada s.e.n.c., HalfSerious, AÇAÏ, Université Laval - Institut Intelligence et Données
SCALE AI investment: $2.7 million
Total investment: $7.8 million
→ Development of Automated Material Characterization Systems in Material Recovery Facilities
Partners: Industries Machinex Inc., Seika Logiciel Inc., Centre en imagerie numérique et médias interactifs (CIMMI), Updata, Tricentris
SCALE AI investment: $2 million
Total investment: $5.6 million
→ Rio Tinto – RailVu – Optimization of the Rail Network With AI
Partners: Rio Tinto Iron Ore Company of Canada, QNS&L – Quebec North Shore and Labrador Railway, SimWell, Tata Steel Minerals Canada, Tacora, Port de Sept-Îles, MFQ - Minerai de fer Québec, Claude-Guy Quimper from Institute Intelligence and data - Université Laval
SCALE AI investment: $1.7 million
Total investment: $4.4 million
→ AI-Driven Demand Forecasting
Partners: Rio Tinto Alcan Inc., Multitech Valorisation Inc., IVADO Labs
SCALE AI investment: $1.6 million
Total investment: $4 million
→ Flyer Production Automation
Partners: Transcontinental Inc., Canadian Tire Corporation,IVADO Labs, KPDI Digital
SCALE AI investment: $1 million
Total investment: $2.5 million
→ Avianor: Planning and Scheduling of Aircraft Repair
Partners: Avianor Inc., PAMC, Air Canada, Vooban.
SCALE AI investment: $1.2 million
Total investment: $2.9 million
→ AI-Enhanced ERP for Driving Manufacturing Productivity
Partners: Genius Solutions, Machitech, LG Cloutier Group, Osedea, Catalytik Innovation
SCALE AI investment: $1million
Total investment: $2.6 million
→ Nordfab—SaCad Project
Partners: Groupe NordFab, Prestolam Inc., Christian Marcoux cuisine et mobilier design, Vooban, SIMR
SCALE AI investment: $0.9 million
Total investment: $2.1 million
→ Preventing Demand for Direct-to-Store Delivery
Partners: CIS Group, Boulangerie St-Méthode, Dion Herbes & Épices, Moov AI
SCALE AI investment: $0.9 million
Total investment: $2.9 million
→ Generative AI Assistance for In-Store Operations Optimization
Partners: Canac-Marquis Grenier Ltee, Frontleap, Hectiq.AI
SCALE AI investment: $0.9 million
Total investment: $1.7 million
→ CollectorOPT
Partners: RPM Environnement Ltée d.b.a. RPM ECO (MC), Oscal, Vooban, Inovestor, Sanza Inc.
SCALE AI investment: $0.7 million
Total investment: $1.8 million
→ AI-Powered Knowledge Leadership
Partners: Cossette Communication Inc., Hivelighter
SCALE AI investment: $0.7 million
Total investment: $1.7 million
→ Intelligent Management of Construction Plans and Resources
Partners: Groupe Humaco, Manugypse Inc., Lefebvre & Benoit, Vooban, Génisys Groupe Conseil
SCALE AI investment: $0.5 million
Total investment: $1.3 million
→ Demand Forecasting and Fulfillment Optimization
Partners: Avantis Coopérative, BMR, Quincaillerie Richelieu Ltée, Société Les Peintures Pittsburgh, Vooban
SCALE AI investment: $0.4 million
Total investment: $1.1 million
→ Enhancing E-Commerce Search (Phase 1 & Phase 2)
Partners: Coveo Solutions Inc., IVADO Labs, Lee Valley Tools, Canac-Marquis Grenier Ltee
SCALE AI investment: $4.5 million
Total investment: $16.1 million
→ Accelerating ZetaForge GenAI-Powered Digital Transformations Platform
Partners: Zetane Systems, IVACO Rolling Mills, Trinary, Maison Social
SCALE AI investment: $0.6 million
Total investment: $1.6 million
→ Qualification and Intelligent Writing of a Call for Proposals
Partners: Umaneo, Groupe GEYSER, Groupe Baillargeon-MSA, Tessier Récréo-Parc Inc.
SCALE AI investment: $0.5 million
Total investment: $1.1 million
About SCALE AI (scaleai.ca)
SCALE AI is Canada's global innovation cluster in artificial intelligence (AI). Based in Toronto and Montreal , SCALE AI plays a central role as the main unifying force of the Canadian AI ecosystem. As an investment and innovation hub, it accelerates the rapid adoption and integration of AI into the Canadian economy while contributing to the development of a world-class AI ecosystem. Funded by the Government of Canada , SCALE AI brings together over 500 industry partners, research institutes, and other key players in AI. It provides strategic and financial support to companies implementing real-world AI applications, aiming to encourage the emergence of future industry leaders and facilitate the development of a highly skilled workforce. Additionally, SCALE AI is behind ALL IN, Canada's largest AI event that allows Canadian actors to showcase their expertise in front of an international audience from around the globe. For more information about SCALE AI, visit scaleai.ca or LinkedIn.
SOURCE Scale AI
Eric Aach, [email protected], 514-569-3594
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Toronto Sun
4 hours ago
- Toronto Sun
Canada weighs retaliation cost against Trump tariffs as analysts warn hitting back isn't worth it
Published Aug 02, 2025 • Last updated 10 minutes ago • 4 minute read Tractor trailers entering the U.S. from Canada at the Pacific Highway Border Crossing in Blaine, Washington, on Monday, March 3, 2025. Photo by David Ryder / Bloomberg Canada's decision to retaliate against U.S. tariffs earlier this year appears to be driving a divergence in how President Donald Trump is dealing with America's neighbours. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account Until this week, Canada and Mexico received similar treatment in White House trade actions. Each was subject to a 25% base tariff, with a large exemption for goods shipped under the North American free trade pact known as CUSMA (or USMCA). That changed on Thursday, when Trump granted Mexico a 90-day pause on tariff hikes while jacking up its tax on Canadian products to 35%. The administration said Canada's higher rate was a response to fentanyl trafficking and its moves to hit back with counter-tariffs. The situation leaves Prime Minister Mark Carney with a political dilemma. On one hand, he won an election by promising a muscular approach to the trade war, saying the government would use tariffs to cause 'maximum pain' in the US. His voters remember that, and some want him to punch back. This advertisement has not loaded yet, but your article continues below. Yet the retaliatory measures already undertaken failed to prevent further escalations. Instead, they appear to have emboldened Trump's team to hit even harder. U.S. administration officials including Commerce Secretary Howard Lutnick frequently talk about how only two countries retaliated against Trump's tariffs — the other was China. 'Canada's retaliatory trade measures against the United States further complicate bilateral efforts to address this escalating drug crisis,' the White House said in a fact sheet, referencing fentanyl. But Mexico is a much larger source of shipments of the drug into the U.S., according to Customs and Border Protection data. Carney, an economist and former central banker, has also made it plain he believes retaliation can only go so far. In fact, his government has watered down Canada's counter-tariffs with a number of exemptions, declined to increase them when the U.S. lifted steel and aluminum tariffs to 50% and scrapped a tax on technology services at Trump's request. Your noon-hour look at what's happening in Toronto and beyond. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. Dominic LeBlanc, the minister in charge of trade talks, told Radio-Canada on Friday the government hasn't made any decisions about further retaliation. But Carney is clearly reluctant to do so — which 'reflects the reality that counter-tariffs are understood to be economically harmful to the country which imposes them,' said David Collins, a professor specializing in international trade at City St George's, University of London. The government's priority is to keep the CUSMA carve-out that dramatically lowers the real tax on Canadian goods. The effective U.S. tariff rate on Canada is about 6.3%, according to Bank of Nova Scotia economists. 'A more diplomatic approach is likely to bear more fruit with the Americans,' Collins said. This advertisement has not loaded yet, but your article continues below. Canada imposed two rounds of counter-tariffs in March, when Justin Trudeau was in his final days as prime minister. The first placed 25% levies on about $30 billion of imports from the U.S. that included food items, clothing and motorcycles. The second came when Trump put tariffs on steel and aluminum. Then, when Trump added tariffs to foreign automobiles, Carney essentially matched that move, imposing similar fees on U.S. cars and trucks. But in mid-April, the government unveiled a series of exemptions for business inputs — goods imported for use in manufacturing and food packaging, as well as things needed for health care, public safety and security. Automakers such as General Motors Co. and Honda Motor Co. that make vehicles at Canadian plants were also made eligible for relief from import taxes. This advertisement has not loaded yet, but your article continues below. The large majority of U.S. products can still enter Canada tariff-free. U.S. companies and other entities exported about $440 billion of goods and services to Canada last year — more than to any other nation. For Canada, 'the logic for escalation over cooperation is just weak,' said Oliver Lavelle, global macro strategist at Thiel Macro LLC. Mexico's Way Mexican President Claudia Sheinbaum, in contrast, has never imposed counter-tariffs on the U.S. Sheinbaum's position is also supported by her high approval ratings, which have remained above 75% in most polls. 'It's worth saying: President Trump treats us with respect in all the calls we've had, and we do too,' she said during a new conference. 'We may not agree, but the treatment is respectful.' This advertisement has not loaded yet, but your article continues below. A statement issued late Thursday night by Carney's office expressed disappointment in Trump's tariff hike on Canada, but made no mention of retaliation. A spokesperson for Carney declined to comment further. LeBlanc said he met with Lutnick on Tuesday night, and that Canadian officials held other meetings throughout the week, but a deal acceptable to both sides 'was not yet visible.' In his statement, Carney acknowledged that lumber, steel, aluminum and autos are still subject to U.S. levies, and said his government 'will act to protect Canadian jobs, invest in our industrial competitiveness, buy Canadian, and diversify its export markets.' 'Jitters' But while the CUSMA exemption gives Canada some breathing room, the sectoral tariffs on steel and aluminum are still harmful and will affect economic growth if they're in place for long, Collins said. This advertisement has not loaded yet, but your article continues below. Avery Shenfeld, chief economist at Canadian Imperial Bank of Commerce, said the idea that Canada is getting off lightly is 'both overstated and potentially premature.' Canadian industries are more reliant on U.S. exports than their overseas competitors, and Trump could also chose to weaken the CUSMA exemption at any time, he said in a note to investors. 'We are still hopeful for a deal that relieves at least some of the pressure on base metal exporters,' Shenfeld said. 'But whether any of this lasts will depend on Trump's word, and we've seen how shaky that foundation can be, leaving jitters that could impact business capital spending and confidence ahead.' —With assistance from Mario Baker Ramirez and Carolina Millan. Read More Toronto Blue Jays Columnists Columnists Toronto & GTA Canada


Toronto Star
8 hours ago
- Toronto Star
An open letter to Prime Minister Carney from Canada's $7B cannabis industry
Despite our progress, writes Paul McCarthy, significant barriers still prevent the Canada's massive cannabis industry from reaching its full potential — barriers we urge Ottawa to address as part of building One Canadian economy. Jeff McIntosh / The Canadian Press file photo flag wire: false flag sponsored: false article_type: Opinion : sWebsitePrimaryPublication : publications/toronto_star bHasMigratedAvatar : false : Paul McCarthy is the president and CEO of the Cannabis Council of Canada. This letter is endorsed by more than 50 CEOs across Canada's legal cannabis sector. Full list of signatories available at Opinion articles are based on the author's interpretations and judgments of facts, data and events. More details


Global News
9 hours ago
- Global News
Canada's housing market is in ‘new normal.' It looks like the ‘old normal'
With the Bank of Canada holding interest rates again, economists and real estate experts say the housing market's 'new normal' may be looking more and more like the 'old normal' from before the COVID-19 pandemic. 'What we have now with more supply in the market, like more inventory, homes for sale, and this is what I would consider a little bit more — not everywhere in Canada — but generally speaking more return to the old normal before the pandemic,' said Robert Hogue, assistant chief economist at RBC. 'Actually, probably a lot more before the pandemic with a bit more time for buyers to make decisions.' Much of the original hesitation from buyers waiting to enter the market in early 2025 was due to the uncertainty of looming and implemented tariffs by the U.S., Hogue said. Story continues below advertisement He added in the months since, the perspectives of Canadians have changed and the lack of 'doom and gloom' is bringing back some homebuyers. National home sales rose 2.8 per cent in June, building on a 3.5-per cent rise in May, the Canadian Real Estate Association (CREA) said earlier this month. However, the CREA's senior economist, Shaun Cathcart, cautioned while homes sales saw a boost — including a 17.3-per cent rebound in the Greater Toronto Area since April — the national picture is a 'carbon copy' from May sales figures. 2:39 Peterborough housing market shows slow spring Hogue notes that positivity and growing confidence will benefit the housing market in the long-term, especially as RBC does not expect any further rate cuts. Get breaking National news For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy There are still some challenges, such as continued U.S. uncertainty, but he said some energy is returning. Story continues below advertisement 'What we've seen in recent months is a return to that recovery is still very kind of gentle, just more of a turning point taking place,' he said. 'Barring any major bad news on the trade front that would send more kind of ice cold water on expectations and confidence, we should see that recovery going forward.' Some mortgage brokers in Canada say despite concerns over U.S. tariffs and the economy, they're still seeing people entering the market. 'Every mortgage broker that I speak to is busy right now because house prices are high, interest rates aren't great but people are still buying,' said Hannah Martens, mortgage broker and president of the Canadian Mortgage Brokers Association Atlantic. 'I really do feel that even though we aren't in a perfect market right now, and I don't think there will ever be a perfect market, people, if they're ready, then should come into the market whenever they're ready.' Affordability remains a 'psychological' block Even with Canadians trying to buy their first or a new home, there are still barriers and affordability may be a key factor. Story continues below advertisement 'We still have affordability issues, but I think even for those who have the ability to purchase right now, they're not. We need them to pull the trigger,' said Mary Sialtsis, a licensed mortgage broker in Ontario. 'Maybe it does take the Bank of Canada to start dropping the prime lending rate because it is that psychological impact, because I do have buyer clients out there actively shopping right now, but they're not actually pulling the trigger and making an offer.' Sialtsis said what may be needed even more is an adjustment of expectations. 'I know that some of the buyers that are out there shopping are just thinking, 'Well, you know, I'll wait until I can get a better deal,' and it starts to become unreasonable,' she said. 1:01 Throne speech: King Charles says Liberals will work to make Canada's housing market 'work better' 'For sellers, I really think they need to adjust their expectations and they need to, I'm sure their realtors are advising them of what comparable sales are in their neighbourhood, they need to adjust their expectations accordingly.' Story continues below advertisement Canadians hoping for low mortgage rates seen during the COVID-19 pandemic may be out of luck, but Royal LePage's Anne-Elise C. Allegritti said some people appear to be realizing this. 'I think Canadians have adapted to this sort of, being roughly the new normal in terms of borrowing rates. Could they go down a little bit more, sure, but I don't think anyone is expecting them to reach those rock-bottom rates that we saw during COVID and that's a good thing,' said Allegritti, director of research and communications at Royal LePage. 'I think sometimes our perspective can be skewed because of this extreme that we experienced not too long ago and this feels now like the opposite extreme, but it really is a leveling off.'