Snap quiz: What was the first item ever sold on the Internet?

[cue the theme from Jeopardy]

Time’s up. The answer: marijuana.

Surprised? Well, it’s true. In 1972, long before the advent of e-commerce, students from Stanford University in California and MIT in Cambridge conducted the first ever online transaction. Using the Arpanet account at their artificial intelligence (AI) lab, the Stanford students sold their counterparts in Massachusetts a small amount of marijuana.

Fast forward to 2024. Marijuana is returning full circle to its AI roots.

AI is permeating all aspects of society and cannabis is no exception. The biggest technology game-changer in cannabis right now is a specific application called AI-driven precision agriculture. If you’re a growth investor looking for “the next big thing,” you’ve found it.

AI-driven precision agriculture combines the power of AI with advanced agricultural techniques to optimize every aspect of marijuana production. By enhancing efficiency, quality, and sustainability, this technology is transforming the cannabis sector.

AI-driven precision agriculture involves the use of AI algorithms and machine learning models to analyze vast amounts of data collected from various sources, including sensors, drones, satellite imagery, and historical crop data.

This data is used to make informed decisions about planting, irrigation, fertilization, pest control, and harvesting. The goal is to maximize yield, reduce waste, and minimize environmental impact.

Technology and weed are increasingly intertwined. The North America cannabis technology market size was estimated at USD 12.70 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 28.3% from 2024 to 2030 (see chart).

Let’s drill down into the features and benefits of AI-driven precision agriculture.

Optimized Resource Management. AI-driven precision agriculture enables growers to use resources such as water, fertilizers, and pesticides more efficiently. By precisely determining the needs of each plant, farmers can reduce waste and lower costs. AI can analyze soil moisture levels in real-time and adjust irrigation schedules accordingly, ensuring that plants receive the right amount of water at the right time.

Increased Yield and Quality. By closely monitoring plant health and growth conditions, AI systems can identify potential issues before they become serious problems. This proactive approach helps to increase both the quantity and quality of the harvest. AI can detect early signs of nutrient deficiencies or pest infestations and recommend targeted interventions, resulting in healthier plants and higher-quality buds. Marijuana is a fragile plant; AI gives it survival tools.

Enhanced Sustainability. Precision agriculture reduces the environmental impact of cannabis cultivation by minimizing the use of chemicals and optimizing resource consumption. This sustainable approach not only benefits the planet but also appeals to environmentally conscious consumers and investors.

Data-Driven Decision Making. AI provides growers with actionable insights based on data analysis. These insights can inform decisions about crop selection, planting schedules, and market strategies. By leveraging AI-driven data, cannabis producers can stay ahead of market trends and consumer preferences.

Labor Efficiency. The labor-intensive nature of traditional cannabis farming can be a significant barrier to scalability. AI-driven systems can automate many tasks, such as monitoring plant health, applying treatments, and managing inventory. This automation frees up human labor for more complex and value-added activities, reducing labor costs and increasing productivity.

Read This Article: Pot Stocks on the Brink of Election Year Boom

The integration of AI-driven precision agriculture into the cannabis industry presents numerous investment opportunities.

As more regions legalize cannabis for medical and recreational use, the demand for high-quality cannabis products is expected to rise. AI-driven precision agriculture can help producers meet this demand by increasing yield and quality while reducing costs.

Environmental, social, and governance (ESG) criteria are becoming increasingly important for investors. Companies that adopt sustainable practices, such as precision agriculture, are likely to attract ESG-focused investors.

The reduced environmental impact and efficient resource use associated with AI-driven cultivation align well with ESG principles. Eco-friendly growing techniques also give marijuana marketers a selling point.

The ongoing development of AI and machine learning technologies is likely to result in even more sophisticated precision agriculture solutions. Investors who support companies at the forefront of this innovation can potentially reap substantial returns as these technologies mature and gain widespread adoption.

Investing in AI-driven precision agriculture within the cannabis sector offers a unique diversification opportunity. As this technology gets applied to various types of crops, investors can benefit from advancements in precision agriculture across the broader agricultural industry.

A Note from John Persinos: Why are certain cannabis stocks already jumping +1,000%? It has to do with seasonality…specifically, the U.S. presidential election.

It happens every four years. No matter who’s running for office. During the previous presidential election cycle, you had a chance to grab 569%… 1,020%… 2,426% and higher. Now it’s happening again, and you’ve no time to lose.

I’m the editorial director of Investing Daily. I’m also the editor-in-chief of our premium trading service Marijuana Profit Alert. To find the best cannabis stocks, you need to conduct due diligence.

The good news is, I’ve done the homework for you. For Marijuana Profit Alert, I’ve put together a portfolio of the best-of-breed marijuana equities. These holdings are poised to soar during this political season. If you’re fortunate enough to own these companies, you’ll reap a windfall.

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This article previously appeared on Investing Daily.