Guide · Canada · October 6, 2026
AI for Canadian small businesses: costs, compliance and funding.
What AI costs, what the law requires and what funding exists, written plainly, in Canadian dollars, with every claim linked to its official source.
By Sirrius Office Inc., Toronto. Last reviewed . We build AI tools, so our own prices appear in the costs chapter, labelled as ours. We take no money from any AI vendor or funding program.
Is there an AI law for Canadian small businesses?
No AI-specific law is in force. Privacy, anti-spam, competition and regulator rules already apply to AI use.
Read the chapterWhat does AI cost?
About $10 to $36 per person per month for assistants; custom workflows are one-time projects; per-task usage is usually cents.
Read the chapterIs there funding?
No grant pays for AI subscriptions. A BDC loan (LIFT), provincial training grants and SR&ED for genuine research do exist.
Read the chapter01 · Costs
What does AI cost a small business in Canada?
For a small Canadian business, AI costs fall into three layers. Off-the-shelf assistants cost roughly $10 to $36 per person per month. A custom workflow built for your business is a one-time project, ours start from $1,800. Usage-based AI, the kind that runs inside a custom tool, usually costs cents per task. The biggest cost is often none of these: it is the staff time to check what the AI produces.
Off-the-shelf AI assistants
List prices before tax, checked October 6, 2026. US prices are converted at the Bank of Canada rate of 1.4254 for 2026-10-05[7].
| Product | Listed price | In CAD |
|---|---|---|
| Claude Pro[3] | USD 20 / month (USD 17 billed yearly) | about $28.51 |
| Claude Team, standard seat[3] | USD 25 / seat / month (USD 20 billed yearly) | about $35.63 |
| ChatGPT Plus[4]As reported; check the vendor page. | USD 20 / month | about $28.51 |
| ChatGPT Business[4]As reported; check the vendor page. | USD 25 / user / month (USD 20 billed yearly), 2 seats minimum | about $35.63 |
| Microsoft 365 Copilot Business (add-on)[5]Requires a Microsoft 365 business plan. | CAD 28.50 / user / month, billed yearly | $28.50 |
| Google Workspace (Gemini included)[6]Starter, Standard and Plus plans. | CAD 9.20 / 18.40 / 28.70 per user / month | $9.20 to $28.70 |
Custom tools: one-time builds
When an assistant is not enough, a tool is built around your own process, price book and approvals. These are our published prices in CAD, shown so you have a real reference point; other Canadian builders will differ.
- Workflow Blueprint: written spec and fixed price$750 flat, credited to the build
- One bounded workflow, built and handed overfrom $1,800
- Larger operational systemfrom $5,500
- Optional monthly care$350 / month per workflow
Custom tools usually pay per use instead of per seat. As an example, Anthropic lists its Sonnet 5.5 model at USD 2 per million input tokens and USD 10 per million output tokens (about $2.85 and about $14.25). A million tokens is roughly 750,000 words, so drafting one estimate or reply typically costs a fraction of a cent to a few cents.
The costs people leave out
- Review time. Someone has to read what the AI drafts before it reaches a customer. Budget that time honestly; it is usually smaller than the time saved, never zero.
- Setup and cleanup. Price books, templates and past examples often need tidying before any tool can use them well.
- Seats you do not use. Per-person subscriptions add up across a team; most businesses need them for a few people, not everyone.
- Switching later. Tools that hold your data in their own format make leaving expensive. Ask how you get your data out before you start.
How many Canadian businesses use AI
02 · Compliance
What does Canadian law require when you use AI?
Canada has no AI-specific law that applies to private businesses as of October 2026. Using AI is governed by the rules you already follow: privacy law (PIPEDA, or the provincial law in Quebec, Alberta and BC), anti-spam law (CASL), the Competition Act, and your professional regulator. The business stays responsible for what its AI tools do with customer information and for what they say.
What is law, and what is not, as of October 2026
| Rule | Status | Who it applies to |
|---|---|---|
| PIPEDA (federal privacy law)[8,9] | In force | Private businesses in Ontario and every province without its own private-sector privacy law |
| Quebec Law 25 (private sector act)[10] | In force | Businesses handling personal information of people in Quebec |
| Alberta PIPA and BC PIPA[9] | In force | Private businesses operating within Alberta or BC (instead of PIPEDA) |
| CASL (anti-spam)[11,12] | In force | Anyone sending commercial email or texts, including AI-written ones |
| Competition Act, 2024 amendments[13] | In force | Anyone advertising or publishing reviews, testimonials or prices |
| Ontario AI disclosure in job postings[14] | In force | Ontario employers with 25 or more employees that use AI to screen applicants |
| Privacy commissioners’ generative AI principles (2023)[15] | Guidance | All organizations using generative AI |
| Voluntary Code of Conduct on generative AI[16] | Guidance | Companies that build or operate generative AI systems, not businesses that use them |
| AIDA (Artificial Intelligence and Data Act, Bill C-27)[17] | Not law | Died on the order paper on January 6, 2025 |
| Bill C-36, Protecting Privacy and Consumer Data Act[18,19] | Not law | Tabled June 15, 2026; at second reading. Would replace PIPEDA’s privacy rules |
| Bill C-34, Safe Social Media Act[20] | Not law | Tabled June 10, 2026; at second reading. Aimed at chatbot and social media operators |
| Ontario Bill 194[21] | Public sector only | Ministries, municipalities, school boards and similar bodies; not private businesses |
Putting customer information into an AI tool
You can, but you stay responsible for it. Under PIPEDA, sending personal information to an AI vendor for processing is a use, not a disclosure, so no new consent is needed if the purpose is the same one you collected it for. You need a contract that gives comparable protection, and customers must be told their information may be processed outside Canada.
- A business remains accountable for personal information it sends to a third party for processing, including an AI vendor, and must use contracts or other means to provide a comparable level of protection.[22]
- Customers must be told clearly that their information may be processed in another country and may be accessible to that country’s authorities.[22]
- Canada’s privacy commissioners say not to put personal information into generative AI prompts without legal authority, to treat AI inferences about a person as personal information, and to assess privacy risk before deploying.[15]
- A privacy breach that creates a real risk of significant harm must be reported to the Privacy Commissioner and the affected people, and every breach must be recorded and the record kept for 24 months.[23]
- In BC, PIPA does not require breach notification, though the BC commissioner recommends it. PIPEDA and Alberta PIPA do require it.[24,9]
Letting AI make a decision about a person
In Quebec, if a decision about a person is made only by automated processing, you must tell them, and on request explain the information and main factors used. Elsewhere the privacy commissioners expect the same openness and a human who can review the decision, though it is guidance rather than statute.
- Quebec’s private sector act (section 12.1, in force September 22, 2023) requires telling a person when a decision about them is based exclusively on automated processing, and explaining the personal information, reasons and main factors on request.[10]
- Quebec also requires a privacy impact assessment before personal information is sent outside Quebec, which includes most US-hosted AI tools.[10]
- Quebec penalties reach $10 million or 2% of worldwide turnover for administrative penalties, and up to $25 million or 4% for penal offences.[25]
- Keeping a person in the loop who can review and override the AI’s output is the simplest way to stay on the right side of both the law and the guidance.[15]
AI-written marketing messages and reviews
AI-written emails and texts follow the same rules as any others: consent, sender identification and a working unsubscribe under CASL. AI-generated reviews that do not come from real customers are misleading under the Competition Act. Asking real customers for reviews, and drafting your replies with AI, is fine.
- Every commercial email or text needs consent, sender identification and an unsubscribe mechanism honoured within 10 business days, whoever or whatever wrote it.[11,12]
- CASL penalties reach $10 million per violation for a business.[12]
- The Competition Bureau treats fake reviews, and reviews with an undisclosed connection to the business, as misleading.[26,27]
- The Bureau has said the existing ban on false or misleading representations already applies to AI-generated content, and flagged AI-generated fake reviews as a risk.[28]
- Since June 2024, businesses must be able to prove discount claims, and leaving mandatory fees out of an advertised price is misleading. Since June 20, 2025, private parties can bring deceptive-marketing cases to the Competition Tribunal.[13,29]
- There is no requirement in force to label AI-generated content in Canada. The Competition Bureau has recommended one.[28]
Using AI in hiring
Since January 1, 2026, an Ontario employer with 25 or more employees that uses AI to screen, assess or select applicants must say so in the public job posting. A one-line statement is enough.
- The duty applies to employers with 25 or more employees on the day the job is posted, and applies even when a recruiter does the screening for you.[14]
If a regulator licenses your work
Your regulator’s conduct rules already apply to anything AI writes for you. RIBO has published specific guidance for insurance brokers; RECO’s advertising rules apply to AI-written real estate ads.
- RIBO’s May 2025 guidance says customers should know when they are dealing with AI, client information should not go into open AI systems, a person should stay in the loop, and the licensee stays responsible for the output.[30]
- RECO’s advertising bulletin requires the brokerage to be named and claims to be accurate, current and verifiable. It applies to AI-written ads the same as any other.[31]
Common misconceptions
- AIDA is law.
- It died with Bill C-27 on January 6, 2025.
- Bill C-36 is in force.
- It was tabled in June 2026 and is at second reading.
- Ontario’s Bill 194 regulates business AI.
- It covers the public sector only.
- The AI vendor is responsible for my customers’ privacy.
- Under PIPEDA your business stays accountable.
- Canada requires AI content to be labelled.
- Not yet. It has only been recommended.
- Every Ontario employer must disclose AI in job ads.
- Only employers with 25 or more employees.
This chapter summarizes public sources in plain language. It is not legal advice; for a decision with real exposure, talk to a lawyer or your regulator.
03 · Funding
What funding exists for AI in a Canadian small business?
There is no federal grant that pays a small business to subscribe to off-the-shelf AI tools. What exists in October 2026 is a BDC loan for AI adoption (LIFT), training grants delivered by the provinces, the SR&ED tax credit for genuine research, and a few regional programs sized for larger projects. The Canada Digital Adoption Program is closed.
Loan · Business Development Bank of Canada
Loans of $25,000 to $5 million for AI technology, CRM and ERP, data infrastructure and cybersecurity, including installation and integration. Principal can be deferred up to two years.
Who it fits: Needs at least $1 million in annual revenue for the AI and digital track, technology from Canadian suppliers or integrators, and a mandatory BDC Advisory Services plan.
Ontario Job Grant[34]
OpenGrant · Government of Ontario
Up to $10,000 per trainee for staff training, including training on AI tools. Employers with fewer than 100 staff pay at least one sixth of the cost.
Who it fits: Training must come from an eligible provider such as a college, university, registered career college or industry association. A private consultant does not qualify.
Tax credit · Canada Revenue Agency
A 35% refundable credit for Canadian-controlled private corporations on up to $6 million of qualifying spending a year.
Who it fits: Only work that resolves a genuine technological uncertainty qualifies. Connecting an AI tool to your business with standard methods almost never does.
Grant · National Research Council Canada
Advisory support and funding for incorporated firms developing and commercializing new technology, including building AI into their own products.
Who it fits: For businesses building technology, not adopting it. Access is through an Industrial Technology Advisor at 1-877-994-4727.
Repayable contribution · Regional development agencies (FedDev Ontario, PrairiesCan and others)
Usually interest-free repayable contributions of up to 50% of an AI adoption or commercialization project.
Who it fits: FedDev Ontario’s intake is closed; PrairiesCan is taking applications continuously. Projects are typically too large for a firm of 5 to 50 people.
Plan grant · Ontario Centre of Innovation
Up to $15,000 (about half the cost) for a digital adoption plan written by an approved OCI consultant. Ontario added $5 million in May 2026.
Who it fits: Ontario for-profit businesses with 1 to 499 staff. The consultant must be on OCI’s approved list.
Canada Digital Adoption Program[44]
ClosedGrant · ISED and BDC
Formerly up to $15,000 for a digital plan plus a 0% loan. New applications closed in February 2024.
Who it fits: BDC now points businesses to LIFT instead.
Sirrius is not an approved vendor, advisor or consultant for any program on this list, and we take no referral fees. Programs open and close often; confirm the status on the official page before you plan around one. The federal AI strategy published in June 2026 also announced an AI adoption assessment tool for small businesses, with no launch date yet[45].
Common questions
The questions owners ask us most.
Is there a law regulating AI for small businesses in Canada?
Not an AI-specific one. As of October 2026, the Artificial Intelligence and Data Act (AIDA) is not law: it died with Bill C-27 in January 2025. Bill C-36, tabled in June 2026, is still at second reading. Small businesses using AI are governed by existing law: PIPEDA or provincial privacy law, CASL, the Competition Act and their professional regulator.
Can I put customer information into ChatGPT or another AI tool?
Only if it fits the purpose you collected it for and you protect it. Under PIPEDA your business stays accountable for personal information it sends to an AI vendor, needs a contract giving comparable protection, and must tell customers their information may be processed outside Canada. Canada’s privacy commissioners advise against putting personal information into prompts without legal authority. Business plans that do not train on your data are the safer choice.
Do I have to tell customers that I use AI?
In Quebec, yes, when a decision about a person is made only by automated processing. Elsewhere it is not yet a statutory requirement for most uses, but privacy commissioners and regulators such as RIBO expect openness when customers are dealing with AI. Ontario employers with 25 or more staff must disclose AI screening in job postings.
How much does AI cost a small business in Canada?
Off-the-shelf assistants such as Claude, ChatGPT, Microsoft Copilot and Google Gemini list at roughly $10 to $36 CAD per person per month. A custom workflow built around your own process is a one-time cost; Sirrius builds start from $1,800 CAD. Usage-based AI inside a custom tool usually costs cents per task. Staff time to review AI output is the cost most often left out.
Is there a government grant for AI for small businesses in Canada?
Not for subscribing to AI tools. As of October 2026 the main options are the BDC LIFT loan for AI adoption, provincial training grants such as the Ontario Job Grant, the SR&ED tax credit for genuine research and development, and regional programs sized for larger projects. The Canada Digital Adoption Program is closed to new applicants.
Is BDC LIFT a grant?
No. LIFT is a loan of $25,000 to $5 million from the Business Development Bank of Canada, launched in April 2026. It needs at least $1 million in annual revenue for the AI and digital track, technology from Canadian suppliers or integrators, and a mandatory BDC Advisory Services plan.
Can I use AI to write customer reviews?
No. Reviews that do not come from real customers are misleading under the Competition Act, and the Competition Bureau has flagged AI-generated fake reviews specifically. Asking real customers for reviews and using AI to draft your replies is fine, as long as a person approves what is posted.
Does SR&ED cover building an AI tool?
Only if the work resolves a genuine technological uncertainty that existing knowledge cannot. Connecting a chatbot or automation to your business with standard tools and APIs almost never qualifies. Where it does, Canadian-controlled private corporations can claim a 35% refundable credit on up to $6 million of qualifying spending a year.
Do AI-written marketing emails need consent?
Yes. CASL applies to every commercial email and text whoever or whatever writes it: you need consent, sender identification and an unsubscribe that is honoured within 10 business days.
Who is responsible if an AI tool gets something wrong?
Your business. Privacy law keeps you accountable for customer information you share with vendors, the Competition Act applies to what your marketing says regardless of who drafted it, and regulators such as RIBO say licensees stay responsible for AI output. Keeping a person who approves anything that reaches a customer is the practical safeguard.
Sources
Where every claim comes from.
- 1.Use of artificial intelligence by Canadian businesses, second quarter of 2026. Statistics Canada, 2026-06-11.
- 2.Business plans to adopt artificial intelligence, 2026. Statistics Canada, 2026-10-01.
- 3.Claude pricing. Anthropic, 2026-10-06.
- 4.ChatGPT pricing. OpenAI, 2026-10-06.
- 5.Microsoft 365 Copilot for business. Microsoft Canada, 2026-10-06.
- 6.Google Workspace pricing (Canada). Google, 2026-10-06.
- 7.Daily exchange rates. Bank of Canada, 2026-10-05.
- 8.Personal Information Protection and Electronic Documents Act. Justice Laws Website, 2026-09-21.
- 9.Provincial and territorial privacy laws and oversight. Office of the Privacy Commissioner of Canada, 2026-01-28.
- 10.Principaux changements apportés par la Loi 25. Commission d’accès à l’information du Québec, 2023-09-22.
- 11.Getting consent to send email. Innovation, Science and Economic Development Canada, 2025.
- 12.Frequently asked questions about Canada’s anti-spam legislation. CRTC, 2025.
- 13.Significant changes to strengthen the Competition Act become law. Competition Bureau Canada, 2024-06-20.
- 14.Your guide to the Employment Standards Act: publicly advertised job postings. Government of Ontario, 2026-01-01.
- 15.Principles for responsible, trustworthy and privacy-protective generative AI technologies. Federal, provincial and territorial privacy commissioners, 2023-12-07.
- 16.Voluntary Code of Conduct on the Responsible Development and Management of Advanced Generative AI Systems. Innovation, Science and Economic Development Canada, 2026-06-04.
- 17.Bill C-27 (44th Parliament, 1st session). LEGISinfo, Parliament of Canada, 2025-01-06.
- 18.Bill C-36, Protecting Privacy and Consumer Data Act. LEGISinfo, Parliament of Canada, 2026-06-15.
- 19.Government of Canada tables new legislation to protect children’s data, strengthen privacy and build trust in the digital economy. Innovation, Science and Economic Development Canada, 2026-06-15.
- 20.Bill C-34, Safe Social Media Act. LEGISinfo, Parliament of Canada, 2026-06-10.
- 21.Bill 194, Strengthening Cyber Security and Building Trust in the Public Sector Act, 2024. Legislative Assembly of Ontario, 2024-11-25.
- 22.Guidelines for processing personal data across borders. Office of the Privacy Commissioner of Canada, 2009-01-27.
- 23.What you need to know about mandatory reporting of breaches of security safeguards. Office of the Privacy Commissioner of Canada, 2025-08-11.
- 24.Breach notification. Office of the Information and Privacy Commissioner for BC, 2026.
- 25.Sanctions et poursuites, entreprises privées. Commission d’accès à l’information du Québec, 2024-01-31.
- 26.Deceptive Marketing Practices Digest, volume 1. Competition Bureau Canada, 2015.
- 27.Influencer marketing and the Competition Act. Competition Bureau Canada, 2022.
- 28.Consultation on artificial intelligence and competition: what we heard. Competition Bureau Canada, 2025-01-27.
- 29.Guide to the June 2024 amendments to the Competition Act. Competition Bureau Canada, 2024-06.
- 30.Responsible AI use among RIBO licensees. Registered Insurance Brokers of Ontario, 2025-05-29.
- 31.RECO Bulletin 5.1: Advertising requirements. Real Estate Council of Ontario, 2024-01-17.
- 32.BDC launches LIFT, getting Canadian SMEs off the AI sidelines. BDC, 2026-04-24.
- 33.LIFT financing. BDC, 2026-10-06.
- 34.Ontario Job Grant. Government of Ontario, 2026-08-31.
- 35.SR&ED program updates. Canada Revenue Agency, 2026-10-06.
- 36.Guidelines on the eligibility of work for SR&ED tax incentives. Canada Revenue Agency, 2026.
- 37.Financial support for technology innovation. National Research Council Canada, 2026-10-06.
- 38.NRC IRAP support for SMEs innovating with artificial intelligence. National Research Council Canada, 2024-10-22.
- 39.Regional Artificial Intelligence Initiative. Innovation, Science and Economic Development Canada, 2026.
- 40.Regional Artificial Intelligence Initiative, adoption pillar. FedDev Ontario, 2026.
- 41.Regional Artificial Intelligence Initiative. PrairiesCan, 2026.
- 42.Digital Competence Centre. Ontario Centre of Innovation, 2026.
- 43.Ontario investing additional $5 million to help small businesses modernize and grow. Ontario Centre of Innovation, 2026-05-20.
- 44.Canada Digital Adoption Program. BDC, 2026-10-06.
- 45.Canada’s National Artificial Intelligence Strategy: AI for All. Innovation, Science and Economic Development Canada, 2026-06-08.