Canadian government $33.8M AI initiative: Small businesses can also use AI employees

May 8, 2026 · Glow Pacifier Consulting · 5 min read

52% of large Canadian enterprises are already using AI. Small businesses? Only 17.4%. It's not because AI isn't useful for small operations—a two-person dental clinic can benefit from AI just as much as a Fortune 500 company. The issue is the barriers: cost, complexity, and not knowing where to start.

The federal government just gave an answer. Saskatoon tech company Vendasta received $1.4 million in federal funding for one specific purpose: making enterprise-grade AI accessible to the corner restaurant, the neighbourhood plumber, and the law firm on Main Street. It's not about you learning the technology—AI does the work for you.

What is RAII?

RAII (Regional AI Initiative) is part of the federal 2024 budget, administered by Prairies Economic Development Canada (PrairiesCan). The money isn't for big tech companies; the goal is to help AI startups and growth-stage companies commercialize their technology, while also helping traditional industries—agriculture, healthcare, clean tech, manufacturing—truly adopt AI.

Vendasta is one of five Saskatchewan organizations selected for this round of funding. The other four are Coconut Software, HomeTeam Live Technologies, the University of Regina, and Artificial Intelligence Saskatchewan Corp.

What Can an AI "Employee" Do?

Vendasta isn't traditional software—it's AI employees. Answering calls, managing reviews, following up with clients—there's an AI role for each task.

AI employee roles	What It Actually Does
AI Front Desk	24/7 phone answering, appointment scheduling, and FAQ support
AI reputation specialist	Monitor reviews on Google/Facebook and other platforms, auto-respond.
AI sales assistant	Capture potential leads, screen intent, automatically log into CRM

Each AI employee already knows your business data, history, and customers from day one. It's not something you set up and figure out yourself—it's ready to work immediately. Vendasta recently launched MARiO in Italy, the first AI employee built specifically for local businesses there, proving this model works in any market.

Who Is Talking About This?

PrairiesCan Minister Eleanor Olszewski said: "In times of global uncertainty, supporting homegrown innovation is more important than ever. We're investing in Saskatchewan's tech sector to create good jobs and build a strong Canada."

Vendasta co-founder Jeff Tomlin put it bluntly: "From day one, we believed local businesses deserve better technology than what they have. AI can now do what used to require a full-time employee. A two-person shop can have the responsiveness of a twenty-person company."

What does this mean for Chinese-Canadian small business owners?

91% of small businesses already using AI report a direct increase in revenue. That's a significant number. Through over 60,000 channel partners (agencies, media companies, telecoms, software vendors), Vendasta has reached over 8 million local businesses globally. Your competitors may already be using AI to answer calls, respond to reviews, and find customers.

For Chinese-Canadian business owners in food, retail, and services, you don't need to build the tech yourself. These AI tools are distributed through partners—you just need to use them. And the federal government keeps pouring money into AI adoption—get in now, and more subsidies will follow.

Can this be combined with other grants?

• BDC LIFT Program:$500 million dedicated to helping SMEs adopt AI—works alongside RAII, one targets tech companies, the other targets businesses using tech.
• CDAP Digital Transformation Grant:Federal digital grants can cover the upfront procurement costs of AI tools.
• Ontario Job Training Grant (OJG):Internal training on staff using AI tools can qualify under this

Frequently Asked Questions

I don't know anything about technology—can I still use it?

Vendasta's AI employee is designed with 'zero learning cost' in mind. You don't need to know how to code or set up servers. It works through software you already use (like CRM). Essentially, it's as simple as installing an app.

How much can small businesses actually save with AI?

According to Vendasta data, 91% of small businesses using AI have seen revenue growth. The exact numbers vary by industry—a restaurant using AI for booking management can save half a day of front-desk labor, while a law firm using AI to manage reviews can save the equivalent of half a marketing specialist. Savings can range from a few hundred to two or three thousand dollars a month.

Can I apply for RAII funds directly?

RAII targets AI technology companies, not end-user small businesses. But the funding eventually flows to you—AI companies use the money to make products cheaper and better, so you can access enterprise-grade AI at a low cost. If you're interested in subsidies for purchasing AI tools, BDC LIFT and CDAP are better entry points for you.

Are these things reliable? Will they disappear in a couple of years?

RAII is a formal program from the 2024 budget, with $33.8 million over five years, running until the end of 2028. It's not a pilot or an experiment. And Saskatchewan's AI ecosystem is rapidly taking shape—the Uniting the Prairies tech conference is held annually, and federal funding continues to flow in.