Agriculture is ready for AI, but its data isn’t

Artificial intelligence is transforming what is possible in agriculture, but industry leaders should be wary of investing in AI without first laying the groundwork. The use cases are promising, especially for an industry navigating volatile fertilizer costs, unpredictable weather, and margins that leave little room for error. Research shows AI-enabled predictive models can improve crop yield by 26%, reduce water use by 41%, and cut chemical usage by 33%. However, what AI vendors usually won’t tell you is that these solutions are only effective if you have a clean, solid data foundation. However, at Reltio, we have experience in this area, including leading technology strategy at a major agricultural distributor and building a data platform used by enterprises worldwide–we’ve seen it first hand. What AI vendors won’t tell you Vendor conversations in agriculture tend to follow a familiar pattern. The pitch leads with grand promises around using AI to monitor crop health in real time, optimize irrigation, and squeeze more yield from every acre. The promise is compelling, but what rarely comes up is the question of whether the data foundation underneath those promises is accurate and complete. If not, there is a real and significant risk that AI will generate misleading outputs that seem authoritative but inspire action that is, at best, counterproductive. For instance, a yield prediction model fed inconsistent historical data will generate imprecise forecasts. Similarly, a precision irrigation system drawing on fragmented sensor data will make watering decisions that waste resources instead of saving them. In each case, the AI is failing because the data it was trained on was not sufficient to produce trustworthy outputs. In agriculture, every AI hallucination is a liability, and the likelihood of error is high. Why agriculture is a uniquely challenging test case The data landscape across a modern agricultural operation or a large distributor serving thousands of growers is extraordinarily complex. Modern farming environments make extensive use of IoT devices and machinery. Irrigation systems are automated, tractors navigate fields autonomously, and drones capture field imagery at scale. However, machine data is disparate by nature. Add in external sources, including weather feeds, U.S. Department of Agriculture data, and third-party market information, and the question of how you bring all of it together into something coherent becomes a significant undertaking. Agricultural AI also needs to understand more than just customer attributes; it needs to understand the land: GPS coordinates, farm boundaries, field blocks, and soil variation across a single property. Where do you apply fertilizer, and at what rate, and in which specific area of the farm? Not all parts of a field are the same, and an AI system that treats them as if they are will produce recommendations that are at best imprecise and at worst damaging. There is also a compliance dimension due to the chemicals and the responsibility involved. Operational AI in agriculture needs significantly more checks and governance than it might in a lower-stakes environment. When a flawed recommendation gets acted upon in the field, the consequences can be severe. What data readiness means in practice Data readiness is the difference between AI delivering on its promise vs. a “garbage in, garbage out” scenario. Fundamentally, being ready for AI means having a data model that accurately reflects how the business operates. For a company like Wilbur-Ellis, a 104-year-old, family-owned agricultural distributor, that means understanding who your customers are, which fields they farm, which inputs they need, which suppliers those inputs come from, what they paid last season, and how all of that connects to margin. That information needs to be current, consistent, and accessible across the organization, rather than locked in separate systems that were never designed to talk to each other. Similarly, for farming operations themselves, data readiness means having a reliable, connected picture of what is happening across every field: soil health records, input application histories, yield data from previous seasons, equipment performance, and real-time sensor readings from irrigation systems. Governance matters just as much as structure. Prices change, relationships evolve, and suppliers come and go. An AI system drawing on data that was accurate six months ago but has not been maintained will make recommendations based on a version of the business that no longer exists. Building the foundation that makes AI trustworthy The good news is that the path to data readiness is feasible. It starts with a strong data model: a single, governed source of truth that connects customers, suppliers, products, pricing, orders, and margins in a way that reflects how the organization operate