PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 2104510
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 2104510
Generative AI in Agriculture Market size was valued at US$ 350.8 Million in 2025, expanding at a CAGR of 29.1% from 2026 to 2033.
Agricultural generative AI is the use of artificial intelligence that generate insights, predictions, simulations, and recommendations in order to optimize the operations of farms. The technology utilizes the power of large language models (LLMs), machine learning algorithms, computer vision, geospatial analytics, and farm data generated by IoT to help farms make informed decisions during crop planning, precision farming, irrigation management, monitoring livestock, optimizing supply chains, and adhering to regulations. With the help of generative AI, farmers will be able to automate agronomical recommendations, monitor weather and soil conditions, use their resources efficiently, and increase the efficiency of their farms while practicing sustainable agriculture. Market growth is driven by increased adoption of digital agriculture, increased usage of smart farming technologies, increased need for food security, and continued investment in AI-based agriculture solutions. Moreover, cloud computing, satellite images, drones, and connected farm equipment further drive the adoption of generative AI solutions.
Generative AI in Agriculture Market- Market Dynamics
Rising Global Food Demand and Adoption of Digital Agriculture to Drive Market Growth
Increasing demand for food production along with rapid adoption of digital agriculture technologies is the major driver in the Generative AI in Agriculture Market. There is an increasing usage of generative AI by farmers as well as agriculture business to facilitate crop planning, automation of agronomy recommendation, improving irrigation management, monitoring of crops, and making better decisions with the help of real-time data about the weather, soil, and satellite data. These AI platforms are help to cut down on costs of inputs, optimize resource use, and also facilitate sustainable farming practices. The Food and Agriculture Organization (FAO) states that food production needs to rise by 70% until 2050 to cater to the requirement of around 9.1 billion people that will be living in the world during that time. Growing demand is leading to increased investments in precision agriculture, artificial intelligence, and smart farming technologies. Moreover, there is consistent promotion from USDA regarding the usage of digital agriculture and precision farming technologies in agriculture. With increasing government and agribusiness spending in AI-based farm management systems, predictive analytics, and intelligent decision support systems, demand for generative AI solutions is expected to rise significantly during the forecast period.
The Global Generative AI in Agriculture Market is segmented on the basis of Offering, Application, End User, and Region.
In the Generative AI in Agriculture Market, in terms of Offering, Software holds the major market share due to the rising popularity of cloud, on-premise, and hybrid AI solutions used for intelligent farm management, crop monitoring, predictive analytics, and decision automation. AI software allows farms to optimize crop planning, analyze the climate and soil conditions, recommend agronomic practices and manage resources better. For example, in March 2025, BASF and Agmatix have established a partnership for developing an AI-driven digital platform to detect and predict the presence of Soybean Cyst Nematode (SCN). It uses Agmatix's AI engine Axiom to convert agronomic data into standard information, helping farmers to make well-informed decisions and avoid yield losses. At the same time, the market share of the Services category shows a stable increase since agricultural enterprises need consulting and assistance in implementing, integrating, and maintaining AI-based solutions in farming businesses.
In Application Crop Planning & Management occupies a notable market share because of the growing demand for AI-based crop recommendations, yield forecasting, and disease predictions. It is anticipated that there will be a marked rise in Precision Farming due to AI-powered analytics that would optimize the use of fertilizers, irrigation, and pests' control. Farm Advisory & Decision Support, Irrigation & Water Management, Livestock Management, and Agricultural Supply Chain Optimization are also becoming popular with the adoption of connected farming technology. In terms of End Users, Agribusiness Companies occupy the largest market share as a result of substantial investments into AI-based farm management and digital agriculture solutions, whereas Farmers adopt generative AI solutions at a fast pace to increase efficiency and cut down costs.
Generative AI in Agriculture Market- Geographical Insights
In the Generative AI in Agriculture Market, North America dominates the global market in terms of the highest market share due to the rapid penetration of precision agriculture, digital farming technologies, cloud computing, and AI into the agricultural sector. Favorable conditions are created by the high level of government involvement, research activities, and AI/agritech giants in the region. Based on the data published by the U.S. Department of Agriculture (USDA), 27% of all farms in the United States used precision agriculture technologies for one or more crops in 2023, and the percentage is steadily rising due to the use of data-driven methods that help to become more productive.
Europe is yet another major market with substantial investments being made in technologies such as digital agriculture, sustainable agriculture programs, and artificial intelligence. The Common Agricultural Policy (CAP) from 2021 to 2027, as announced by the European Commission, includes funding worth €387 billion for supporting farmers' incomes along with €95.5 billion for rural development, climate action, environmental protection, and modernization of farms. This has resulted in the rapid adoption of various smart farming technologies and AI-based advisory tools, thus providing conducive environment for the Generative AI in Agriculture Market.
The Generative AI in Agriculture Market competitive landscape comprises global technology players, agritech companies, cloud service companies, and providers of precision agriculture solutions based on artificial intelligence. Major companies include Microsoft Corporation, Google LLC, IBM Corporation, Bayer AG, Corteva Agriscience, Syngenta Group, Deere & Company, Trimble Inc., BASF Digital Farming GmbH, and The Climate Corporation, among others that occupy strong market positions thanks to collaborations, cloud-based AI solutions, and constant investment in digital agriculture. Thus, for example, Microsoft, together with Bayer Crop Science and EY, created a generative AI agronomy assistant that uses Azure OpenAI Service and enables agronomists to gain information about crop health, agronomy advice, and product information via natural language. Companies are enhancing their market positions owing to innovation in AI, precision agriculture solutions, satellite analytics, IoT integration, and other factors that enable the digitalization of global agriculture.
In January 2026, Syngenta partnered with SAP to accelerate AI-assisted agriculture by integrating AI-driven capabilities across its global operations. The collaboration modernized manufacturing, supply chain, and grower-facing services through SAP Cloud ERP Private solutions, enhancing data-driven decision-making, operational efficiency, scalability, and innovation while strengthening Syngenta's agricultural technology leadership.
In February 2025, Bayer Crop Science, in collaboration with EY and Microsoft, developed a generative AI-powered agronomy assistant using Azure OpenAI Service, Azure AI Search, and Azure Data Manager for Agriculture. The solution enabled farmers to access crop health and agronomy insights through natural language queries, improving decision-making and agricultural productivity.