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Conducted by Fraunhofer IESE, the report assesses the potential of AI-enabled decision-making support tools (AI DMST) in helping farms increase efficiency, reduce inputs, and better manage risk - while identifying the barriers that currently hinder wider adoption.
The report finds that although AI technologies for agriculture are advancing rapidly, adoption remains uneven. Structural and technical obstacles persist, particularly for smaller actors. These include limited access to high-quality data, high development costs, lack of interoperability, and uncertainty around regulatory compliance. Farmers and advisors often encounter tools that are difficult to integrate into existing workflows or lack transparency in how recommendations are generated.
To address these challenges, the report proposes a sequenced set of policy actions. In the short term, it recommends promoting interoperability through common standards, funding public repositories of agricultural data, and supporting tools and services for data annotation - such as labelling imagery or sensor data to train AI models. It also calls for the launch of regulatory sandboxes to enable real-world testing of AI solutions under safe conditions, and the co-funding of demonstration projects that demonstrate certified, explainable tools with clear benefits for end users.
The report also emphasises the role of shared infrastructure in lowering entry barriers for smaller providers. A dedicated agri-food AI Factory, launched under the Digital Europe Programme, is described as a key initiative offering access to computing resources, domain-specific datasets, and regulatory support. According to the report, such infrastructure can help reduce development costs and support the deployment of trustworthy AI tools tailored to agricultural needs.
While the report focuses on the European Union context, it also compares international approaches and stresses the importance of building a coherent, inclusive innovation ecosystem. Continued coordination between policymakers, research institutions, and industry stakeholders will be essential to ensure that AI tools are developed and adopted in ways that are transparent, effective, and aligned with Europe’s broader digital and sustainability objectives.
You can download the full report report below.