Abstract

Artificial intelligence is increasingly transforming agricultural production, supply chain management, and commodity market coordination in the United States. While digital technologies have improved productivity and operational efficiency, their influence on market power and competitive dynamics within agricultural markets remains insufficiently understood. This study examines the relationship between artificial intelligence adoption and market power in the United States agricultural sector using an econometric framework grounded in industrial organization theory. The analysis evaluates how artificial intelligence capabilities, digital data infrastructure, and firm scale influence market concentration and pricing power among agricultural firms. Empirical results indicate that firms with higher levels of artificial intelligence adoption demonstrate stronger productivity performance and greater pricing influence in agricultural markets. The findings also show that digital data infrastructure significantly enhances analytical capacity and operational efficiency, reinforcing competitive advantages among technologically advanced firms. At the industry level, the diffusion of artificial intelligence technologies appears to contribute to increased market concentration as larger agribusiness firms expand their technological capabilities. These results highlight the growing importance of digital technologies in shaping agricultural market structures. The study contributes to the literature on digital agriculture and industrial organization by providing new empirical evidence on how artificial intelligence influences market power and competitive dynamics within the agricultural economy.