I n The new frontier: Navigating Australia’s top farming risks in 2026, we explored how farming risk is evolving rapidly, and nowhere is that more evident than in the rise of artificial intelligence across the sector. Where automation and precision tools were once considered forward-looking, they are now integrated into everyday farm management. Drones monitor livestock and crops, software platforms analyse soil and yield data, and machinery increasingly relies on embedded systems and digital diagnostics. However, amid all of the hype, the implementation of AI and technology should always be driven by need, confirms Phoebe Twiggs, Head of AI and Data Science at Allianz Australia. “I think you can get caught up in the hype of AI and just want everything without actually thinking about what is my business problem,” she says. “It always comes back to understanding your pain points, and choosing solutions to help address and fix those problems.” Tom Gilmore, Head of Farm Underwriting at Allianz Australia, agrees. “It’s about working out where the biggest benefit is for my farm, where it’s going to have the biggest impact.” In agriculture, those business problems are often practical and immediate: labour shortages, inconsistent yields, climate volatility, and margin pressure. For brokers, that commercial lens is a critical context from which to help farming clients understand what’s worth pursuing, and what’s not. And, more pertinently, what new risks may be introduced into the business. From reactive to proactive management
When machinery becomes software-enabled
As automation and robotics increase, machinery risk evolves alongside capability.
Modern agricultural equipment increasingly incorporates embedded software, remote diagnostics and proprietary systems. Repairs may require specialist technicians or imported components, particularly in regional or remote areas. Increasingly, machinery is not just mechanical; it is data- enabled, connected, and integrated with farm management platforms, meaning a failure is no longer isolated.
“It always comes back to understanding your pain points, and choosing solutions to help address and fix those problems.”
Ammon Mackie, General Manager of Commercial Business Transformation at Allianz Australia, says that brings a new dimension to labour challenges.
“With that comes retraining and understanding new exposures,” Mackie adds.
A mechanical issue that was once resolved locally may now involve system resets or manufacturer intervention, with different repair timelines – impacting on the business. For brokers, reviewing business interruption assumptions in light of this shift becomes increasingly relevant. Digital supply chains and ecosystem exposure The risk landscape does not stop at the farm gate, and the increasing implementation of AI and tech introduces a whole new set of risks, too – particularly from third-parties. “It’s no longer just the risk of your farm,” Twiggs says. “It’s the risk of all your suppliers as well. If they have a cyber attack and have to shut down production, you’re impacted.” High-profile cyber incidents in food processing have already demonstrated how disruption can cascade across supply chains. All of this means that, today, resilience is no longer limited to physical assets. It extends to digital systems, third-party providers, and supply chain continuity.
One of the most significant shifts AI enables is the move from reactive to proactive farm management.
Livestock can be tagged and monitored for temperature and health metrics in real time. Drone imagery and soil analysis allow crop conditions to be assessed continuously rather than periodically. Twiggs says that connected devices are increasingly changing how farms monitor operations. “It’s about being able to pick things up earlier and put proactive measures in place, rather than waiting until you physically see the issue and then acting,” she explains. The upside is clear. Early detection can help improve yield outcomes, optimise inputs and support better planning. Yet, as farms become more connected, operational reliance on digital systems deepens – and while the shift to continuous monitoring introduces efficiency, it also creates dependency.
8 A NIBA Brokers’ Guide: to farming the future
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