AI in Agtech is blooming

Added on 28 February 2023

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Artificial intelligence has been a hot topic in recent months thanks to OpenAI’s ChatGPT. While everyone is marveling at the technology for passing law exams, AI has long had the ability to feed us.

Source.ag, a Netherlands-based agriculture tech startup, announced on Thursday it raised a modest $23 million Series A funding round for its AI platform that predicts the best growing conditions for greenhouse plants.

AI has been deeply seeded in agtech for a long time. At least $400 million poured into AI-powered agtech startups in 2022 per Crunchbase data, though I suspect the number is higher based on how ubiquitous AI applications are in the space.

Agriculture’s love affair with AI

Due to the irregularities of climate change, extended drought seasons and supply chain issues, feeding the world’s 8-billion-and-growing population is perhaps one of the most pressing problems of our time. These factors add to the rising cost of food.

That’s where AI comes in — several companies use it to predict weather conditions, adjust and save water, and detect diseases that can kill crops.

One of the most common uses for AI is indoor farming. Source.ag’s technology works in greenhouses to adjust water and humidity conditions, making the growing process more efficient and leading to greater yield. Greenhouse growing requires less arable land (a dwindling resource across the world) and less water, making it more resource-efficient than traditional farms.