Farmers adopt AI to manage rising costs and strategic planning

Farmers are increasingly adopting artificial intelligence to navigate rising operational costs and complex decision-making processes. According to McKinsey & Co.’s 2026 Global Farmer Insights report, approximately 17% of farmers worldwide now utilize generative AI for farm-related tasks, marking it as one of the fastest-growing technologies in the agricultural sector. Adoption is notably strong in the Americas.

Economic pressures, including volatile costs for labor, land, equipment, financing, and fertilizer, have driven this shift. High input costs have led to a 24-percentage-point decline in farmers’ spending intentions for 2026, with many looking to reduce fertilizer expenditures.

In the United States, the Purdue University/CME Group Ag Economy Barometer indicates that farmers are viewing AI as a vital tool for strategic and financial planning. More than 30% of respondents identified strategic planning as the primary benefit of the technology, using it to compensate for areas where they feel less proficient, such as business management and long-term succession planning.