Just about every estimate shows that the cannabis industry will see strong long-term growth. Yet there are some major challenges–and they are more than just about changing existing laws and regulations.
But AI (Artificial Intelligence) is likely to be a big help. True, the industry has not been a big adopter of new technologies. However, this should change soon as investors pour billions of dollars into the space.
So how might AI impact things? Well, look at what the CEO and Director of CROP Corp, Michael Yorke, has to say: “The use of AI in sensors and high-definition cameras can be used to keep track of and adjust multiple inputs in the growing environment such as water level, PH level, temperature, humidity, nutrient feed, light spectrum and CO2 levels. Tracking and adjusting these inputs can make a major difference in the quantity and quality of cannabis that growers are able to produce. AI also helps automate trimming technology so that it is able to de-leaf buds saving countless hours of manual labor. Similarly, it can be applied to automated planting equipment to increase the effectiveness and efficiency of planting. And AI can identify the sex of the plants, detect sick plants, heal or remove sick plants from the environment, and track the plant growth rate to be able to predict size and yield.”
No doubt, such things could certainly move the needle in a big way.
There are also opportunities to help with such things as more accurate predictions, which would allow for maximizing efficiency. And yes, AI is likely to be key in discovering new strains or customize strains for specific effects (examples would include relaxation, excitement or increasing/decreasing hunger). The result could be even more growth in the cannabis market.
But there is something else to keep in mind: With no legalization on a federal level in the US, there is a need for sophisticated tracking systems.
“The existing regulations are complex, requiring businesses to follow detailed rules that govern every area of the industry from growing to packaging and selling to consumers,” said Mark Krytiuk, who is the president of Nabis Holdings. “Even the smallest error can cost a cannabis business thousands, and incur harsh punishments such as losing their cannabis license.”
The situation is even more complex with retail operations. “Artificial intelligence is one key technological advancement that could make a significant impact,” said Krytiuk. “By implementing this technology, cannabis retailers would be able to more easily track state-by-state regulations, and the constant changes that are being made. With this information, they would be able to properly package, ship, and sell products in a more compliant way that is less likely to be intercepted by government regulations.”
Keep in mind that the problems with compliance are a leading cause of failure for cannabis operators. “Running a cannabis business can be costly, especially when it comes to getting and keeping a license, paying high taxes, and dealing with the added pressure of ever-changing government regulations,” said Krytiuk. “If more cannabis businesses had access to automated, AI-powered technology that could help them be more compliant, there would be more successful companies helping the industry to grow.”
Again, the AI part of the cannabis industry is very much in the nascent stages. It will likely take some time to get meaningful traction. But for entrepreneurs, the opportunity does look promising. “The industry is only going to continue to grow, so it’s only a matter of time before it reaches its own technological revolution,” said Krytiuk.