Faster adoption of artificial intelligence could improve productivity, resilience and global competitiveness across Canadian agriculture, but the sector continues to lag other industries and leading countries, according to a new Farm Credit Canada report.
The report, AI in Canadian Agriculture: Present Challenges and Future Prospects, was developed with Deloitte Canada and points to Canada’s world-class research capacity, trusted food system and expanding ag-tech sector as a strong foundation for greater AI use.
However, adoption remains limited and uneven. As of the second quarter of 2025, only 1.8% of Canadian agricultural businesses were using AI, compared with 12.2% across other industries. Just 61% of businesses in agriculture, forestry, fishing and hunting had adopted advanced technologies, placing the sector ninth among 12 industries.
Canada also ranked 25th globally for private investment in agricultural research and development and continued to trail its G7 counterparts in AI adoption.
“Leading countries have advanced more rapidly through coordinated investment, strong public-private collaboration, and clear policy direction,” Darren Baccus, executive vice-president of agri-food, alliances and FCC Capital said in a release Thursday.
He warned that without action, adoption will remain fragmented and Canada could fall further behind its competitors.
The report said the main obstacles are not a lack of available technology, but broader structural challenges. These include weak rural connectivity, fragmented digital infrastructure, shortages of skilled workers, limited access to capital, and unclear governance and regulatory frameworks.
It identified four priorities: improving data governance and interoperability, increasing investment in infrastructure and talent, strengthening public-private collaboration, and establishing clearer regulations.
Deloitte Canada partner Tina Beaudry said AI is already producing measurable benefits in precision agriculture, animal health, genomics and robotics. Wider adoption could help farms reduce input costs, improve yields and make more accurate management decisions.
Across the broader food system, AI could also strengthen traceability, improve coordination, and help supply chains respond more quickly to disruptions, the FCC release said.
