Judijanto, L. (2025). Exploring the potentials of artificial intelligence and digital technologies in transforming the palm oil industry: A review. Journal of Information, Technology and Policy, 1-13.
Abstract
The palm oil industry faces increasing pressure to improve productivity, sustainability, and supply chain transparency amid environmental and economic challenges. This study aims to explore the potential of artificial intelligence (AI) and digital technologies in transforming the palm oil sector by synthesising existing qualitative literature. A qualitative literature review methodology was employed, focusing on secondary data sourced from 80 peer-reviewed academic articles, institutional reports, and relevant industry publications. Data collection involved systematic document retrieval and screening to ensure relevance and credibility. Thematic analysis was conducted to identify key areas where AI and digital tools impact the industry, emphasising precision agriculture, supply chain traceability, environmental monitoring, and labour productivity. The results reveal that AI applications significantly enhance yield optimisation through advanced remote sensing and machine learning algorithms, improve supply chain transparency via blockchain and natural language processing, and support environmental compliance through satellite monitoring and emissions detection. Additionally, AI-driven automation aids labour management, addressing workforce challenges and operational efficiency. Despite these advancements, barriers such as low digital literacy among smallholders and infrastructure limitations persist, limiting widespread adoption. The study concludes that while AI and digital technologies hold transformative potential, comprehensive strategies incorporating technological innovation and capacity building are essential for inclusive sectoral development.
Future research should focus on pilot implementations, socio-economic impact assessments, and the development of tailored solutions for smallholder integration to fully harness digital transformation benefits in the palm oil industry.
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