Artificial Intelligence in Agriculture: Risks and Rewards
The rapid growth of artificial intelligence in agriculture is prompting companies to address the potential challenges of integrating this technology into their operations and products.
Archer-Daniels-Midland Co. emphasized in its latest annual report the risks associated with the rapid adoption and development of AI, citing technical, legal, and opportunistic concerns.
While there may not be an immediate threat from AI for ADM and other agricultural companies, equity analyst Seth Goldstein warns of potential unfavorable outcomes.
Generative AI Reshaping Industries
Generative AI is transforming industries and compelling companies to navigate the benefits and risks it presents.
According to a survey by technology platform Arize, about 20% of Fortune 500 companies mention generative AI or large language models in their financial reports, with a majority highlighting the technology’s security and competitive implications.
Media and entertainment, software and technology, and telecommunications are the top industries expressing concerns about generative AI, but sectors like retail, manufacturing, and consumer packaged goods are also addressing the risks in their disclosures.
ADM acknowledges in its annual report the potential data privacy and security risks, missed innovation opportunities, deceptive communications, and competitive disadvantages that AI could introduce. However, it’s important to note that many companies are only listing the risks without fully reflecting their overall stance on the technology.
In the agriculture and food sector, companies like ADM are leveraging generative systems to expedite research and development of new flavors and ingredients, which could otherwise be time-consuming. Smart language systems may also automate certain grain-trading tasks for ADM.
Despite the opportunities AI presents, concerns persist among companies like The Coca-Cola Company, particularly regarding third-party service providers’ adherence to governance frameworks for AI technology.
Data privacy and security remain major apprehensions for food and agriculture companies exploring AI adoption, with legal and regulatory challenges identified as significant barriers to investment in AI, according to a survey by Retail Economics.