Canada’s Agri-Food Sector Risks Falling Behind Without Coordinated AI Strategy: Report

Canada’s agri-food industry could face growing challenges in productivity, innovation and global competitiveness if artificial intelligence is not integrated through a coordinated national strategy, according to a new report led by researchers and industry experts.

The report, titled AI 4 Food: Artificial Intelligence for a Thriving Agri-Food Ecosystem in Canada, highlights both the opportunities and risks tied to the rapid adoption of AI technologies across farming, food production and supply chains. It also points to the need for stronger collaboration between governments, producers, researchers and private industry to ensure the technology is implemented responsibly.

The findings come as Canada’s agriculture sector faces mounting pressure to improve efficiency, strengthen food security and compete in an increasingly technology-driven global marketplace.

AI Adoption Expanding Across Canadian Agriculture

The report was led by Dr. Rozita Dara, professor and Research Impact Leadership Chair and co-director of AI4Food. It follows a three-part national dialogue series that brought together academics, government officials, producers and industry leaders to discuss the future of AI in Canada’s food systems.

According to the report, AI and data-driven technologies are already becoming more common across agriculture and food processing, from crop monitoring to food safety management.

“Food systems cannot be an exception,” Dara said, referring to the accelerating use of AI across industries worldwide.

At the farm level, AI-powered systems are increasingly being used to monitor crop conditions, predict disease outbreaks and help producers make faster decisions that can improve yields and reduce waste.

Further along the supply chain, food processors and safety regulators are also adopting predictive technologies and smart sensors capable of identifying contamination risks or spoilage before products reach consumers.

These tools are viewed as especially valuable in Canada, where agricultural producers often operate across vast geographic regions and face unpredictable climate conditions.

Fragmented Systems Limiting Progress

Despite Canada’s strong reputation in AI research and agricultural science, the report warns that adoption across the agri-food sector remains inconsistent and fragmented.

Researchers say current innovation efforts are often limited by poor interoperability between systems, unclear rules surrounding data ownership and ongoing concerns about privacy and cybersecurity.

“The complex nature of AI systems can make it difficult to understand how decisions are made,” Dara said. “This can lead to concerns about transparency and accountability, especially if mistakes occur or harmful results are obtained.”

Canada’s agri-food system includes a broad network of stakeholders, ranging from small family farms and Indigenous communities to multinational food processors, exporters and retailers. Oversight also spans federal, provincial and municipal governments, along with private and non-profit organizations.

That complexity, the report argues, makes coordination essential.

Without a unified national approach, researchers warn the industry risks duplication of efforts, inefficiencies and siloed development that could weaken Canada’s competitive position internationally.

Calls for National AI and Data Strategies

Among the report’s key recommendations is the development of national AI and data strategies specifically tailored to agriculture and food production.

The report also calls for stronger governance frameworks, clearer policies surrounding data sovereignty and additional investment in workforce training and digital skills.

Researchers say public and private investment must be better aligned to support long-term adoption while ensuring producers of all sizes can benefit from emerging technologies.

The report describes its recommendations as a practical roadmap designed to help Canada modernize its food systems while maintaining public trust.

Data Ownership and Public Trust Emerging as Key Issues

One of the major concerns identified in the report involves the growing amount of data being collected from farms, supply chains and consumers.

Questions remain over who owns the data, who can access it and how it may ultimately be used.

Dara said public awareness will play a critical role in ensuring AI systems are implemented ethically and transparently.

“It is important to raise awareness to ensure these systems are used responsibly, ethically and transparently,” she said.

The report also highlights concerns around potential job displacement and the environmental impact associated with energy-intensive AI systems.

According to Dara, improving public understanding could help build trust and support informed decision-making among consumers, policymakers and producers alike.

Canada Seen as Well Positioned Despite Challenges

While the report outlines significant risks, researchers remain optimistic about Canada’s ability to adapt.

Dara said the country benefits from a collaborative culture within the agri-food sector, something she described as a uniquely Canadian advantage.

“Overall, we are cautiously optimistic,” she said. “There is a strong collaborative mindset in Canadian agri-food, a recognition that a rising tide lifts all boats.”

The report concludes that AI is no longer simply an emerging technology for agriculture but an increasingly necessary tool for long-term survival in the global food economy.

As countries around the world accelerate investment in agricultural technology, researchers say Canada’s ability to coordinate strategy, regulation and innovation could determine whether the sector remains competitive in the years ahead.