AI Is Creating Covid-Level Anxiety in Agrifoodtech, Say Investors
Artificial intelligence is reshaping the agrifoodtech industry so rapidly that it is creating covid-level anxiety among those closest to it, according to investors surveyed by AgFunder.
Artificial intelligence is reshaping the agrifoodtech industry so rapidly that it is creating covid-level anxiety among those closest to it, according to investors surveyed by AgFunder. The sector is transitioning from theoretical promise to practical deployment, with returns described as unusually tangible.
AI is moving from models to applications embedded in workflows, and agrifood is one of the largest real economy opportunity sets where workflows are still under-digitized, said Maarten Goossens at Anterra Capital. This means ROI is unusually tangible compared to other sectors.
The anxiety reflects both excitement and destabilization. AgFunder partner Rob Leclerc said: AI is starting to create covid-level anxiety for people closest to it. That will spread.
Looking ahead, investors see agentic AI reaching agrifoodtech within one to two years. Leclerc predicted: It may not hit agtech for 1-2 more years but its coming and were going to see an entire internet for agents, which is going to deeply disintermediate traditional commercial channels.
Physical AI agtech, using edge AI, robotics and IoT that work autonomously to capture primary data at field and supply chain level, could draw significant capital and bring back tourist VC, according to Antony Yousefian at The First Thirty.
However, investors warned about pitfalls. Ali Morrow at Clay Capital noted: AI is only as good as what its trained on. The sector still lacks the digitization and clean data needed to build durable AI value.
