Artificial intelligence is gaining traction on farms as growers look for new ways to manage increasingly difficult operating conditions, according to McKinsey & Co.’s 2026 Global Farmer Insights report.
About 17% of farmers globally now use generative AI for farm-related tasks, making it one of the fastest-growing technologies in agriculture. Adoption is particularly strong in the Americas, where farmers are using AI to support everyday operational decisions.
AI Adoption Comes After Years of Cost Pressure
The technology is gaining ground after several years of financial pressure across the agricultural sector.
Labor, land, equipment, financing and fertilizer costs have remained elevated and volatile since farm profitability last peaked in 2021-22, according to McKinsey. Uncertain policies, unpredictable weather and labor shortages are adding further pressure to farm-level decision-making.
Other agricultural technologies have yet to see comparable adoption. Robotics, electric machinery and sustainability software remain relatively limited across farms.
Farmers Are Still Cutting Back
High costs are also affecting farmers’ spending plans. McKinsey found that relatively high input costs contributed to a 24-percentage-point decline in farmers’ spending intentions for 2026.
Fertilizer was the most commonly identified area for cuts, with more than one-third of growers saying they would reduce spending on it when profits come under pressure.
Biological crop inputs are showing stronger momentum. More than half of specialty-crop farmers now use at least one biological product, which can serve as an alternative to conventional chemical inputs.
