Big win for South African farmers – with a warning 

Artificial Intelligence (AI) technology carries excellent opportunities for South Africa’s agriculture sector, but it also brings unavoidable risks. 

This is a warning from Intellectual Property (IP) specialist at Webber Wentzel Bernadette Versfeld, who explained that while AI may seem far removed from agriculture, this couldn’t be further from the truth. 

“AI’s influence over the agriculture sector is already having profound effects on global food supply and consumption, stretching into our homes and on our dinner tables,” she said.

In the United States, investment in AI for agriculture is expected to grow to $4 billion (about R73 billion) by 2026 and $4.7 billion (about R85 billion) by 2028. 

The ways in which AI is being used in agriculture, particularly by large farming companies, show how it has the potential to revolutionise global food production.

The impact of this technology can be seen in the AI for Agriculture Innovation (AI4AI) initiative launched by the World Economic Forum India’s Centre for the Fourth Industrial Revolution, in collaboration with India’s Union Ministry of Agriculture and the state of Telangana.

Indian farmers struggle with extreme weather conditions, pest infestations, diminishing yields and high wastage in other parts of the supply chain. 

The AI4AI initiative, tested among 7,000 farmers, transformed chilli farming in Khammam district using bot advisory services, soil testing technology, AI-based quality testing and a digital platform to connect buyers and sellers.

The 18-month pilot, spanning three crop cycles, saw farmers’ income double to $800 (about R14,000) per acre in only six months. 

Digital advisory services led to a 21% increase in chilli yields, with pesticide use dropping by 9%, fertiliser use by 5%, and an 8% rise in unit prices due to improved quality.

South Africa’s agriculture sector also stands to benefit from the use of AI, and this technology can drive change in a number of ways, with drones being particularly important. 

Versveld explained that in agriculture, drones are used to capture low-altitude images of crops, helping to assess pesticide effectiveness and monitor crop growth. 

AI processes the data collected by drones at high speeds, providing farmers with insights that go beyond their personal experience and knowledge since the data comes from thousands of farms, sometimes over many years. 

Drones are also becoming more precise, aiding in tasks like planting or sowing seeds, either on their own or alongside human workers, to optimise the use of labour and land.

Algorithms also play an important role in the agriculture sector, Versfeld explained.  

“Algorithms are helping farmers dictate how much water their crops should receive according to live weather conditions and the best ways to input nutrients into the soil,” she said. 

“Historical data is fed into AI-supported models that provide commercial farmers with analysis and insights regarding the crops they should plant, at what scale, current crop market prices, and likely product per hectare. 

“Greater efficiency improves revenue and lowers costs, enhancing operational sustainability.”

AI-driven optimisations can also help farmers boost their ESG ratings and reduce their carbon footprint.

“Improved ratings can lower the cost of borrowing from large financial institutions that are increasingly incentivised to support environmentally sustainable businesses,” Versfeld said. 

“Supporting global food security through efficient farming only enhances capital market attractiveness, which, at its best, can create a virtuous circle.”

Risks

While AI technology has enormous potential for South African farmers, Versveld warned that this technology also carries risks.

In the first place, there are serious dangers related to data privacy and protection. 

“The more data an organisation creates, the greater the need to correctly manage and protect it, with risk and liability accompanying growing data generation and application,” she said. 

With the growth in data generation and application comes heightened risks and liabilities, including cybersecurity threats, unauthorised data access, data breaches, and malicious attacks. 

“Agriculture operators rely significantly on data collection, wrangling an analysis to provide managers and decision-makers with high-quality information to drive optimised decision-making, which impacts crop yield, product and costs,” she explained.

She added that AI also carries the risk of intellectual property (IP) infringement.

Commercial farmers often rely on specially bred seeds to maximize crop production, making the information on how to best use these seeds highly valuable. However, the use of generative AI presents potential risks. 

For instance, if a farmer uses a generative AI tool to find the best tomato seed and breeding techniques, the AI might provide information protected by copyright or Plant Breeders’ Rights.

“If the farmer proceeds to create a seed produced by generative AI, the liability faced may be extensive,” Versfeld said. 

Additionally, there’s the question of who owns the IP created using AI-generated formulas, especially when it’s unclear how the data was sourced.

This scenario may seem unlikely, but the uncertainty surrounding the data fed into generative AI models, both with and without proper authorisation, raises substantial concerns in IP law. 

Similar risks apply to software development. “If the core code for an agriculture-focused software programme is taken from generative AI, similar liability risks exist,” she explained.

To mitigate these risks, employers must update their labour and disciplinary policies to address the challenges posed by AI use. 

“South African law at present provides little guidance on the use and management of AI-related content and information, placing the onus on companies and employers to take up the mantle in protecting themselves from liability,” she said.

“AI provides the agriculture sector with numerous advantages, but risks are inherent. Scenario planning, preparation and sound legal advice are crucial in avoiding these pitfalls.”