A systematic review of the economic impact of artificial intelligence on agricultural productivity, sustainability, and rural livelihoods

Abstract

As agriculture confronts climate change, land degradation, labour scarcity, and food insecurity, the application of Artificial Intelligence (AI) has emerged as a critical strategy to enhance productivity, sustainability, and rural resilience. This study explores how AI-powered digital agriculture transforms agricultural economics in developing contexts, with a particular focus on Sub-Saharan Africa. Using a structured literature review and thematic synthesis, we analyzed over 60 peer-reviewed articles and institutional reports published between 2020 and 2025. The analysis was organized around three key outcome areas: productivity, sustainability, and rural livelihoods. AI technologies, ranging from predictive analytics and advisory systems to smart irrigation, pest/disease detection, and precision fertilization, demonstrate a consistent pattern of impact. Studies reveal AI-driven yield increases between 12% and 45%, input cost reductions of up to 25%, and measurable improvements in supply chain efficiency. Furthermore, AI contributes to labour reallocation and market integration in rural areas. However, barriers such as infrastructure gaps, digital literacy, and policy vacuum limit scalable adoption. This review bridges technological applications with economic development frameworks, offering an interdisciplinary lens on AI’s role in agriculture. It articulates pathways through which AI enhances technical efficiency, environmental resilience, and rural economic transformation. This review is novel in its structured synthesis of economic outcomes using a triadic framework. It introduces comparative effect-size analysis to quantify AI’s impact in the study. The paper recommends investments in localized AI solutions, rural digital infrastructure, and policy environments that foster inclusive technology diffusion. The study contributes to the growing field of digital agricultural economics, providing evidence-based guidance for policymakers, agritech investors, and development stakeholders.