AI, agritech and the drive for efficiency
Technology adoption is often presented as an inevitable feature of the modern food and agricultural economy. Our research points towards a more practical story.
For many businesses, the attraction of AI, agritech and other new technologies lies in their ability to address existing commercial pressures: increasing productivity, reducing costs, operating at scale and responding to workforce constraints.
What are the primary drivers of AI adoption in your business?
Cost saving, including scale and efficiency
Workforce availability
Quality
Other
The strongest story may therefore be less about whether businesses are using AI and more about the value they expect it to deliver.
Businesses will increasingly need to identify where technology solves a genuine operational problem, how it integrates with existing systems and people, and how return on investment can be measured.
"Across Europe, digitalisation is increasingly focused on practical applications such as traceability, risk management and more efficient production. The opportunity for UK businesses is similarly operational: identifying where AI, automation and better-connected data can deliver measurable improvements in productivity, resilience and decision-making."
Alex Kenworthy Corporate Partner and European Co-Head, Mills & Reeve
Do you foresee any workforce reductions in your business as a result of agritech within the following periods?
Within the next 12 months
1-5 years
More than 5 years
Already happened
No change predicted
The research presents a more nuanced picture of technology and employment than predictions of immediate workforce displacement might suggest.
Cost saving, including scale and efficiency, accounted for 64% of the selected drivers of AI adoption, while 52% predict no workforce change as a result of agritech. Work is nevertheless unlikely to remain unchanged. More than a third (36%) expect workforce reductions within the next one to five years, suggesting transformation may be gradual rather than immediate.
For employers, the priority is therefore likely to be anticipating which roles and duties will change, where new skills will be required and how retraining, redeployment, consultation or contractual changes may need to be managed.
"Automation may provide part of the answer to workforce availability rather than simply being a means of cutting labour costs. Employers should consider where technology can complement existing roles, where skills gaps are likely to emerge and what training will be needed to ensure employees can work effectively alongside new systems."
Laura Brown Employment Lawyer, Mills & Reeve
Net zero meets commercial reality
The same commercial discipline appears in the approach to sustainability.
Is your business taking measures now to become net zero?
Yes
No
What are the primary drivers for taking measures?
27%
ESG and/or reputational pressure
29%
Cost reduction
11%
Regulatory requirement
14%
Supply chain demand
19%
Other
Our survey results indicate a close relationship between commercial and environmental drivers.
Cost reduction was the most frequently selected primary driver of net zero activity, marginally ahead of ESG and reputational pressure.
This points to a more commercially grounded approach to sustainability. Environmental investment does not necessarily sit apart from business strategy: measures that reduce energy consumption, waste, input use or exposure to volatile costs may further both objectives.
For businesses already facing tight margins, the strongest sustainability proposition may therefore be one that demonstrates an operational return as well as environmental progress.
The takeaway
Technology and sustainability investment will increasingly need to demonstrate practical value. The question is moving from “What can this technology do?” towards “What problem does this solve for this business?”
