Insurance
Home›Insurance›Industry & Deals›Farmers step up generative AI use as costs and uncerta…
Farmers step up generative AI use as costs and uncertainty bite
McKinsey data show 17% of the world’s farmers now use generative AI for farm-related tasks, as labor, equipment and input costs stay elevated.
Artificial intelligence adoption on farms is accelerating, with McKinsey & Co. saying 17% of the world’s farmers now use generative AI in farm-related tasks. The findings come from McKinsey’s Global Farmer Insights 2026 report, published Tuesday.
McKinsey links the shift to a multiyear farm slump that forced growers to scale back spending after profitability peaked in 2021 to 2022. The firm says costs for labor, land, equipment, financing and fertilizer have remained elevated and volatile, alongside local policy uncertainty, unpredictable weather and labor shortages that make farm-level decisions harder and riskier.
According to McKinsey, farmers, especially in the Americas, are using AI to support day-to-day planning and management, including agronomic advice. The report also notes that other technologies, such as robotics, electric-powered machines and sustainability software, have minimal penetration on farms so far.
McKinsey’s survey results are based on responses from 5,500 farmers across 10 countries gathered between April and July. The biennial survey also found that higher costs contributed to a 24-percentage-point decline in spending intent for this year, while biological crop inputs were a bright spot, with more than half of specialty crop farmers using at least one biological.