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.

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.