AI in Agriculture: Automating Tasks and Improving Efficiency

Artificial intelligence (AI) is rapidly transforming the agriculture industry. AI-powered solutions are being used to improve crop yields and productivity, reduce costs, improve quality, and reduce environmental impact.

Key Market Insights

Market growth is propelled by several key drivers, including:


The Artificial Intelligence (Ai) In Agriculture market size is expected to be worth around USD 10.2 billion by 2032 from USD 1.2 billion in 2022, growing at a CAGR of 24.5% during the forecast period from 2022 to 2032.

Increased needs to increase crop yields while simultaneously cutting costs; growing recognition of AI benefits in agriculture; and an abundance of computing and data resources all combine together.

Government initiatives to encourage AI adoption in agriculture is driving market segmentation for AI agriculture use: from technologies (machine learning, computer vision and natural language processing), applications (precision farming, livestock monitoring, crop monitoring and agricultural robots), end use industries (crop production, livestock production and aquaculture).


North America is projected to hold the largest share of the AI in agriculture market in 2023, accounting for more than 35% of revenue generated. North America is projected to remain dominant throughout this forecast period while Asia Pacific could become the fastest-growing market due to the rapid development of agriculture sectors and adoption of AI technologies.


IBM, Microsoft, Google, Deere & Company and Trimble are among the key players in the global AI in agriculture market. Each offers AI solutions specifically targeted to agricultural businesses


For more insights:  


COVID-19 Impact 

  •  The COVID-19 pandemic has had both negative and positive repercussions for AI use in agriculture markets. On one hand, it has disrupted supply chains and caused delays for AI-powered agricultural equipment and software deliveries; but on the other hand, its spread has hastened adoption of digital technologies within this sector - including AI technologies.
  • COVID-19 pandemic has demonstrated the significance of food security. Governments worldwide are investing heavily in agriculture sector while encouraging adoption of AI technologies.


Key Insights 

  • Precision farming solutions are projected to account for the highest share of AI in agriculture market over the forecast period due to increasing demand. Precision farming aims at improving yields while simultaneously cutting costs.
  • Livestock monitoring services are projected to experience steady expansion over the forecast period due to rising concern about animal welfare and productivity.
  • Crop monitoring solutions are projected to experience strong growth during the forecast period due to rising demand. Crop loss reduction and yield enhancement solutions should continue their rise over time.
  • Agricultural robots are projected to experience rapid growth over the forecast period due to increased demand for these machines to automate labor-intensive tasks and increase productivity.



The Artificial Intelligence in agriculture market is rapidly growing. Key trends include:


  • Increased adoption of cloud-based AI solutions: Since cloud-based AI solutions are more cost-effective and accessible than on-premises systems, farmers are opting for them more frequently.
  • Artificial Intelligence for Precision Agriculture: Precision agriculture is a farming management approach that utilizes data and technology to maximize crop yields while decreasing costs. AI plays an integral part in precision agriculture by helping farmers collect and analyze data while offering insights that assist them in making better crop management decisions.
  • AI-Powered Agricultural Robots: AI-powered agricultural robots are currently being designed to automate tasks like weeding, harvesting and spraying - which could eventually lead to increased use of AI in agriculture in coming years.


Key Industry Developments

  • IBM and the National Institute of Food and Agriculture (NIFA) in 2023 joined forces to form a partnership to advance AI solutions within agriculture. This alliance should speed up both its development and adoption within this industry.
  • Microsoft FarmBeats was unveiled by Microsoft in 2023 as an AI-powered platform designed to assist farmers in improving crop yields and cutting costs.
  • Google first unveiled Google AI Crop Health as an AI-powered tool in 2023 to assist farmers in detecting crop diseases and pests.
  • Microsoft announced in 2023 the introduction of Azure FarmBeats, a cloud-based platform designed to assist farmers with using AI and IoT technologies to increase yields while decreasing costs.
  • Google AI announced the AI for Social Good Accelerator program in 2023, supporting AI-powered solutions to address social and environmental challenges through agriculture-specific solutions. This initiative included an emphasis on AI.
  • In 2023, India unveiled their National AI Strategy which places particular emphasis on agriculture. This plan seeks to promote development and adoption of AI technologies within agriculture so as to increase crop yields, lower costs, and enhance farmer incomes.



The Artificial Intelligence in Agriculture market is hindered by various factors. Some of the key restraints include:


  • Government Regulations: AI use in agriculture is subject to government regulations in many countries and compliance can often be complex and challenging.
  • Lack of Skilled Labor: AI in agriculture market demands skilled workers who can develop and implement AI solutions, however there is currently an absence of such talent in this area.
  • Cybersecurity Threats: AI solutions are vulnerable to cybersecurity attacks, so farmers should invest in cybersecurity measures in order to protect their data.


Opportunities in AI in Agriculture

  • AI can present businesses of all sizes with numerous opportunities in agriculture. For instance, increasing food production to meet global population increases is creating significant demand for AI technology in agriculture; also rising interest for sustainable practices presents another major chance for the AI market.


  • AI in agriculture is rapidly growing into new applications such as robotics and livestock management, providing businesses in these industries with new opportunities to leverage AI for increased efficiency and productivity.



AI in agriculture faces several key obstacles. Some of them include:


  • AI solutions may be costly for smaller-scale farmers to implement; and many are unaware of its advantages or how best to incorporate AI solutions on their farms.
  • Data Accessibility: AI solutions require large amounts of data for training purposes, which may be difficult and expensive for small-scale farmers to collect. Privacy Concerns: Farmers tend to worry about protecting their data when using AI solutions.


Key Market Segments


By Technology

  • Machine Learning & Deep Learning
  • Predictive Analytics
  • Computer Vision


By Application

  • Precision Farming
  • Drone Analytics
  • Agriculture Robots
  • Livestock Monitoring
  • Labor Management
  • Agriculture Robots
  • Other Applications


 By Component 

  • Hardware
  • Software
  • Service
  • AI-as-a-Service


Market Key Players

  • Raven Industries Inc.
  • Farmers Edge Inc.
  • Deere & Company
  • A.A Taranis Visual Ltd.
  • Gamaya SA
  • AGCO Corporation
  • Bayer AG
  • IBM Corporation
  • Ag Leader Technology
  • Trimble Inc.