Abstract 

In the conditions of globalization, technological development has become comprehensive and has changed such a traditional field as agribusiness. Digital technologies and artificial intelligence capabilities accelerate business communications, enhance customer experience, help realize scientific potential and create new business models, which ultimately increases the operational efficiency of agribusiness. The paper discusses the impact of new technologies on agribusiness, highlights the main opportunities and challenges of the digital transformation of the agricultural sector.

According to the Food and Agriculture Organization of the United Nations, the world population will reach 9.1 billion by 2050, and to feed that number of people, global food production will need to grow by 70%. For example, for Africa, which is projected to be home for about 2 billion people by then, farm productivity must accelerate at a faster rate than the global average to avoid continued mass hunger. The world’s first entirely machine-operated crop – a crop sown and tended without a human ever entering the field – was harvested in 2017, a milestone in digital agriculture, sometimes known as “smart farming”, or “e-agriculture”.

Successful managing of agribusiness requires information. To acquire this information poses certain challenges to the agribusiness manager. The human brain can only cope with processing a relatively limited amount of information. We are also limited by our ability to acquire information as well as the knowledge to interpret this information. Information technology systems enable managers to overcome these obstacles to a large extent. With the help of these systems more information can be gathered with less effort and it can be interpreted with the combined knowledge of specialists in different fields. The interpretation of the information can be done in seconds. This puts a very powerful tool in the hands of the agribusiness manager to use in decision making.

The development of digital technologies in society and the changes it brings are naturally accompanied by inherent risks. The agricultural sector is no exception, and many questions arise about whether digital agriculture can meet expectations, what difficulties we may face, and what vulnerabilities we may be talking about.

The real digital transformation lies not so much in the innovative technology and services offered to farmers, but in the availability of these technologies. Although Georgia's agricultural entities are benefiting from the mechanization and plant protection tools resulting from the industrial revolution, unlike other areas of the economy, they have not yet benefited from the digital transformation initiated by information and communication technologies. At the same time, it should be noted that modern means of communication are already used in the agricultural sector of Georgia: weather forecasts available on the Internet, crop sales through the Internet and social media, mechanization and warehouses equipped with computers, livestock health monitoring using electronic chips and scans.

Despite the many benefits of agribusiness digital transformation, it can also create a digital divide between those who have access to the latest technology and those who do not. To make technological progress inclusive and accessible to all, it is important that policymakers, industry leaders and technology providers work together to take advantage of digitization and support farmers with training, resources and incentives to adopt new technologies. It is with such an approach that Georgia's agricultural sector will be able to make the most of the digital age, improve the sustainability and profitability of agribusiness operations, and mitigate issues such as food security and climate change.