Published in Scientific Papers. Series "Management, Economic Engineering in Agriculture and rural development", Vol. 25 ISSUE 2
Written by Dimitrina STOYANCHEVA, Daniela OROZOVA

Population growth, the subsequent need to meet food needs, and other challenges facing agriculture have led to an accelerated development of innovations driven by artificial intelligence and automation. Industry 4.0 considers cyber-physical systems as a driving factor in increasing agriculture's efficiency while considering environmental issues. This paper aims to present various aspects of the processes in cyber-physical social spaces for agriculture and identify the main advantages and risks associated with the transition to production primarily oriented towards human well-being. We utilize Eurostat public data for local small and medium-sized enterprises (SMEs) for the years 2021-2023 to highlight the initial level of digital transformation. Based on a survey of recent scientific work the study identifies eight categories of risk factors related to the adaptation to the new digital environment, e.g. data protection and labor market change. Furthermore, we specify the main challenges more prevalent for SMEs in agriculture. SMEs tend to show a low propensity to adopt digital technologies and therefore manifest low investment activity. Policy-makers should consider the conservatism issue, among other factors, when developing policies to accelerate digitalization in agriculture.

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