Smart Money: AI Boosts Profitability in Russian Agriculture
The introduction of artificial intelligence into Russian agriculture could raise the sector’s operating profit by as much as $6 billion annually, according to a study by consulting firm Yakov & Partners
Agriculture Gets Smarter—and Richer
The idea of agriculture as a slow-moving, conservative industry is outdated. Over the past decade, labor productivity in Russia’s agro-industrial complex (AIC) has grown by 55%, driven by large-scale adoption of IT solutions. AI-based systems are increasingly used to improve yields and reduce costs.
Russian IT specialists are creating tools that allow farmers to allocate resources precisely and forecast operational efficiency. Analytics now help identify crop diseases, pest outbreaks, and other risks in time for corrective action. This is no longer experimental—it’s everyday practice. More than 15,000 farming machines in Russia are equipped with autopilot systems capable of detecting field boundaries and mapping optimal cultivation routes.
Experts estimate that expanding AI adoption across the AIC could add over $6 billion to annual operating profits.
Revenue Growth Potential
The study projects that digital modernization could yield between $2 billion and $2.9 billion in efficiency gains for crop and livestock farming. Suppliers of agricultural inputs and services could see an additional $1.6–3.2 billion in revenue, much of it from fertilizer production.
Alexey Kletsko, Director at Yakov & Partners, stressed the role of AI in improving production efficiency. Modern technologies, he noted, accelerate optimization and help businesses adapt to labor shortages, rising costs, and financing constraints.
Kletsko explained that agricultural digitalization is being built on two types of AI: analytical and generative. The first is used for yield assessment, logistics planning, and equipment maintenance; the second generates new development scenarios, provides actionable recommendations, and even acts as a digital mentor for farmers.
The Expanding Role of AI in Russian Agriculture
Digital solutions are spreading rapidly. Today, over 20 million hectares are managed with platforms that combine vegetation recognition, satellite imagery analysis, and automated production control—an area larger than Germany’s entire 16.7 million hectares of farmland.
Russia has 371.6 million hectares of agricultural land, and AI integration is growing. Nearly half of large farms already use AI for equipment management, while two-thirds rely on decision-support systems—so-called “agro-assistants.”
Equipment manufacturers are also embedding AI into agricultural machinery. Investment in R&D is rising, fueling faster innovation. Thanks to AI-powered autonomous driving and computer vision, machine productivity has increased by 30–50%. New processing plants are being built to Industry 4.0 standards, enabling full-cycle automation.
Export Opportunities
Evgeny Belov, CEO of the agricultural e-commerce ecosystem Pole.RF, predicts that by 2027, one-third of Russia’s agricultural market will be digital, driven by rapid growth in digital tools that boost profitability.
AI will sharply increase food production. Since Russia already produces more than enough to meet domestic demand, its share in the global food market will rise, strengthening its role in global food security.
There is also strong potential for exporting AI technologies—particularly to countries with similar infrastructure. By 2030, commercialized Russian AI solutions for agriculture could enter foreign markets. Once adapted to local conditions, these systems can improve farm management, reduce risk, and optimize costs—from seed selection to logistics.
Russia aims to position itself as a technological player in the global agtech export market.
