FROM TRADITIONAL TO “SMART” AGRICULTURE: ADVANTAGES, CHALLENGES AND PROSPECTS OF DIGITIZATION

Abstract

Eter Kharaishvili E-mail: eter.kharaishvili@tsu.ge Doctor of Economics Sciences, Professor of Ivane Javakhishvili Tbilisi State University Tbilisi, Georgia https://orcid.org/0000-0003-4013-7354 Paata Koguashvili E-mail: paata_koguashvili@hotmail.com Doctor of Economics Sciences, Professor of Georgian Technical University Tbilisi, Georgia https://orcid.org/0009-0009-8597-3103 Nino Shengelia E-mail: ninoshengelia@gmail.com PhD Students of Georgian Technical University Tbilisi, Georgia https://orcid.org/0009-0003-4099-1603 Abstract: The article emphasizes the importance of the formation of "smart" agriculture in achieving the goals of food security. Digital transformation is seen as the basis for the modernization and progress of agriculture. The advantages of digitization in agriculture are analyzed, the challenges related to the introduction of digital technologies are presented. The paper evaluates the period of transformation from traditional to "smart" agriculture, their advantages and disadvantages are identified through a comparative analysis of traditional and "smart" farms. One of the main issues in the process of digital transformation is the search for effective ways to transition from traditional to "smart" agriculture. By justifying the relevance of digitization, the question is answered: traditional agriculture or "smart" agriculture? Based on statistical data and facts, the development trends of "smart" agriculture are analyzed, its market value is estimated. Taking into account the growth rate of the global digital transformation market, forecast indicators for the period up to 2030 are presented. The paper provides conclusions on the advantages and challenges of "smart" agriculture, offers recommendations on ways to overcome these challenges and prospective directions of development. Keywords: Traditional Farming, "Smart" Farming, Advantages of Digitization, Challenges of Digital Transformation, Perspectives. JEL classification: Q1; O1; O3.