Overview of the NGen Program: AI for Manufacturing Challenge (AI4M)

In a manufacturing landscape marked by a shortage of skilled labor, rising production costs, and rapid technological acceleration, integrating artificial intelligence (AI) into automation processes is no longer optional—it’s a strategic imperative.

Good news for Quebec-based companies: the NGen Program: AI for Manufacturing Challenge (AI4M) provides substantial funding for robotics projects that incorporate AI.

What is NGen’s AI for Manufacturing Challenge?

Next Generation Manufacturing Canada (NGen) is an industry-led, not-for-profit organization dedicated to developing world-class advanced manufacturing capabilities in Canada. NGen leads Canada’s Advanced Manufacturing Innovation Supercluster.

The goal of the AI for Manufacturing Challenge (AI4M) is straightforward: drive real-world adoption of AI in industrial settings. Unlike general innovation grants, NGen’s AI Challenge targets high-impact collaborative projects with budgets ranging from CAD 1.5M to 6M.

Which projects are eligible?

Projects must demonstrate tangible value. AI should be applied to concrete use cases such as:

• Smart automation of assembly lines
• Rapid prototyping through AI-driven simulation
• Automated production line optimization
• Predictive monitoring using computer vision and machine learning
• Cybersecurity applied to production systems

A typical example is developing AI-driven robotic arms that adjust assembly line speed and precision in real time. The focus is on measurable outcomes: reduced defect rates, minimized downtime, improved traceability, or automation of tasks that cannot be standardized without AI.

Key eligibility requirements

1. A consortium of at least two partners, including:
   - At least one Canadian manufacturing SME
   - A technology or AI partner (e.g., robotics integrator or AI solutions provider)
2. Total project budget: CAD 1.5M – 6M
   - Funding covers up to 50% of eligible costs; the remainder must be provided by partners, either in cash or in-kind
3. Clear project timeline and deliverables
   - Typical duration: 12–24 months
   Must demonstrate both technological advancement AND operational gains
4. Clear industrial scope
   - Purely experimental projects are not eligible
   - Focus must be on real-world production applications

Why combine robotics and AI now?

Traditional automation excels at repetitive, well-defined tasks. However, in complex environments, like sorting agri-food products of varying sizes, shapes, or colors, conventional automation quickly reaches its limits.

This is precisely where AI becomes essential. With AI-assisted vision systems, robots can detect, position, and sort non-standardized products in real time. Machine learning allows dynamic adjustment of sorting, cutting, or packaging parameters based on variations in each batch.

Meanwhile, continuous analysis of operational data predicts slowdowns or failures, avoiding costly production stoppages. Integrating AI into robotic cells creates production lines that are more flexible, resilient, and capable of adapting rapidly without reprogramming for every change.

How to submit a project

Calls for projects are periodic but recurring. The standard process is:

1. Submit a Statement of Interest (Letter of Intent)
2. Receive an invitation to submit a full proposal if pre-selected
3. Technical and industrial evaluation by experts
4. Funding decision and agreement signing

Support resources are available, including specialized consulting firms, technology integrators, or industrial innovation hubs (CRIQ, Investissement Québec, etc.).

Integrating AI into your robotics projects is not a technological luxury—it’s an industrial strategy. With NGen’s AI Challenge, you can accelerate your transition to smart manufacturing while reducing the financial risk of innovation.

This type of funding is rare in scale but demanding. To maximize your chances, reach out to robotics experts.

FAQ – NGen AI for Manufacturing Challenge

1. My company is an SME looking to automate a line. Am I eligible on my own?
   No. The program requires a consortium including at least one manufacturing SME AND a technology or AI partner. You must collaborate with an AI provider or robotics integrator.
2. Can I submit a project for standard automation?
   No. The program’s core is integrating AI into a manufacturing process. Automation without AI is not eligible.
3. What types of expenses are covered?
   Salaries, equipment, software, specialized services, in-factory testing, training, project management—as long as they are directly related to project execution.
4. Can this funding be combined with programs like Essor (Investissement Québec)?
   Yes, as long as cumulative rules are respected. NGen covers up to 50% of costs; other sources can fund the remainder if compatible.

Source : https://www.ngen.ca/funding/challenge/ai4m