17 Jun, 2026 5-7 MIN READ

The Role of Machine Learning in Retail

From inventory optimization to personalized customer experiences, ML applications are transforming how retailers operate in today's competitive landscape.

By Iryna Hanchevska
By By Iryna Hanchevska Head of Business Development

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What is farm automation?

In a way, the idea of automating agriculture has always been there, especially since the industrial revolution started and mechanical seed drills became a thing. While the initial couple of centuries, efficiency was the only concern, at a certain point, sustainability was added into the goal list. This might have been overwhelming, but digitization emerged at the right moment, thus spawning an entire field of innovation.

Farm automation today is a wide concept: in fact, it refers to the application of any tech to perform agricultural tasks while minimizing human intervention. Automatic irrigation, GPS-guided tractors, AI crop monitoring and drones all fall under this category.

Since the introduction of precision agriculture tools in the 1990, this evolution has taken the industry to data-driven decision making and robotics, and innovations are proliferating quite rapidly. According to a report by MarketsandMarkets, more than 60% of large-scale farms in North America and Europe have adopted at least one form of automation.

Importantly, farm automation has already passed the stage of disjointed systems and has started closing the gap between data, software, and physical tools, which is a promising trend for even better outputs.

Smart Farming: The Role of Automation

As mentioned, today’s agriculture is optimized not just for efficiency (that is, capability to meet the rising demand for produce) but sustainability, too. However, the former hasn’t disappeared, either. According to the UN, food production will need to increase by approximately 70% by 2050 to correspond to the projected 9.7 billion people. But simply expanding farmland or applying more inputs like this was done in the 1960s is no longer an option.

The good news, though, is that efficiency and sustainability are not inherently opposite “vectors”. When farm automation is combined with data analytics and IoT, making farming more efficient is actually achieved alongside sustainable practices. The key? Targeted action.

For example, smart irrigation can reduce water usage by up to 30%, while VRT (variable rate technology) allows farmers to apply fertilizers and pesticides precisely where they are needed, meaning the chemical runoff is lowered, and soil health is balanced. With livestock, animal health monitoring and feeding systems allow to use up the same amount of resources for a bigger herd.

Precision agriculture and what it requires

The drive toward precise, measured application of resources is what we now call precision agriculture – the practice of using tech to observe, measure, and respond to field variability. In other words, instead of wasting pesticides, water, or fertilizers simply because a field is a field, PA allows farmers to manage smaller sections based on what’s needed right there.

This would be next to impossible to do manually at a modern scale, but with automation, it’s more than achievable. The tech stack for this includes GPS and GNSS, remote sensing (drones, satellites), and IoT sensors, all coupled with VRT (variable rate technology). Drones can capture crop health indicators like NDVI, while sensors collect data on soil moisture, so that the VRT can adjust the input for each area in real time.

Finally, AI and data analytics help make sense of large datasets and predict outcomes, while suggesting the optimal course of action. For an illustration, you can look at one of the projects Lionwood.software did together with Agtellio here.

According to the USDA, farms that use precision agriculture tools can increase yields by 15–20% and reduce input costs by up to 30%. The EU’s Horizon 2020 research program has similarly shown that applying fertilizer variably, rather than uniformly, can cut usage by up to 40% without affecting crop health.

What’s especially neat about it is the scalability. Whether applied to 10 acres or 10,000, precision agriculture adapts to that. In this way, it’s no longer a world of large-operations enterprises with sophisticated machinery, but also smaller farms using affordable drone-based solutions and mobile apps.

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Core technologies for farm automation

The array of technologies (and solution types) used for farm automation is truly great: the ideas of precision agriculture have been applied to almost every aspect of production from planting and irrigation to post-harvest logistics. All of them are some combination of hardware and software, and can be grouped based on the nature of that symbiosis.

1 Automated machinery and robotics

The first step in implementing ML is identifying the areas in your retail operations where machine learning can make the most impact.

2 IoT and sensor networks

Machine learning relies on data, so it’s crucial to collect high-quality, relevant data from multiple sources. For retail, this could include transaction history, customer demographics, website interactions, and social media feedback. Once collected, this data needs to be cleaned and preprocessed to ensure it’s accurate and structured properly for machine learning models.

3 Imaging: drones, satellites

There may be supervised learning vs. unsupervised learning approaches, the former being used for tasks like demand forecasting or sales prediction, the latter, for clustering products, customers, or pattern identification. Another variant is what’s called reinforcement learning, which can be applied for dynamic pricing, making the algorithm learn from real-time feedback.

4 Precision input systems (VRT)

This involves feeding the data into the algorithm and allowing it to learn patterns. After training, the model must be evaluated using validation techniques to ensure it performs well in real-world scenarios. Retailers may need to experiment with multiple models and fine-tune parameters for optimal results.

5 Farm management systems and analytics

This could mean integrating it with point-of-sale systems, websites, or inventory management tools. It’s important to monitor the model’s performance regularly to ensure it adapts to changing consumer behaviors or market conditions.

6 Post-harvest u0026 supply chain automation

Machine learning models are not static; they need continuous refinement. As new data comes in, the model should be retrained to improve accuracy and adaptability. Retailers should establish a feedback loop to ensure the model evolves with changing trends and customer preferences.

The future of AgTech and farm automation

It is, of course, always difficult to predict the future exactly. Agricultural businesses function in a multi-variable environment, where tech is one variable, and then there are demographics, economic and geopolitical dark horses, not to mention the climate change and ecological factors. However, what we can trace forward at the moment paints a picture of the 2030s and 2040s that looks more or less like this:

1 Modular tech for smallholders

A major shift is also happening in accessibility. Scalable solutions that require less capital and infrastructure are being designed for small and medium-sized farms, which make up the majority of agricultural producers globally. Think plug-and-play IoT kits, mobile apps for crop monitoring, and solar-powered irrigation systems.rnrnu003cimg class=u0022alignnone size-medium wp-image-2636u0022 src=u0022https://lionwood.smplfy.eu/wp-content/uploads/2026/05/demo_post_slide_three-300×200.jpgu0022 alt=u0022demo_post_slide_threeu0022 width=u0022300u0022 height=u0022200u0022 /u003e

2 Farm management systems and analytics

Cloud-based platforms aggregate and analyze data from various sources—machinery, sensors, satellite feeds—and translate them into actionable insights. In a way, farm management systems have become the industry’s equivalent of what CRMs are in services and ERP in logistics – and just as diverse. Most popular features include:rnu003culu003ern tu003cliu003eCrop planning toolsu003c/liu003ern tu003cliu003eYield forecastingu003c/liu003ern tu003cliu003eAutomated reporting, andu003c/liu003ern tu003cliu003eAutomated reporting, andu003c/liu003ernu003c/ulu003ernu003cimg class=u0022alignnone size-medium wp-image-2637u0022 src=u0022https://lionwood.smplfy.eu/wp-content/uploads/2026/05/demo_post_slide_two-300×200.jpgu0022 alt=u0022demo_post_slide_twou0022 width=u0022300u0022 height=u0022200u0022 /u003e

Conclusion

Whether you’re a large agricultural enterprise or a smallholder looking to scale sustainably, it’s a good idea to explore the tools that can transform your operation. At Lionwood.software, we specialize in building custom farm automation and AgTech solutions tailored to real-world needs, not just tech for tech’s sake. Contact us today to discuss how smart farming software can work for you.

About Author

Iryna Hanchevska
Iryna Hanchevska
Head of Business Development
  • 8+ years in revenue growth and partnerships
  • Leads international Business Development teams across 8 countries
  • Expert in connecting business needs with software solutions

Iryna is an accomplished Head of Business Development at Lionwood Software with over 8 years of experience in the technology sector. She specializes in driving revenue growth, establishing strategic partnerships, and building strong client relationships.

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