CNH's chief technology officer, Jay Schroeder, recently visited Brazil to explore artificial intelligence applications for the firm's research and development division. While the agricultural machinery manufacturer has invested significantly in governance and evaluating vendor-supplied certified tools, the practical implementation of this technology within its own research unit is still in its very early stages.
TL;DR
- CNH explores AI for R&D, facing ROI concerns and high pilot failure rates.
- CNH uses AI to boost software development efficiency and reduce herbicide use.
- AI helps CNH extract field data, saving time on manual report creation.
- CNH invests in AI and advanced tech as a key selling point for farmers.
Schroeder states that persistent worries regarding AI's return on investment have hindered his progress. He references a summer publication from MIT which concluded that 95% of AI pilots fail.
“It’s great that we’ve got people engaged in AI,” says Schroeder, who quickly pivots to ask rhetorically, “How do we measure success? What are the things that we can measure to say, ‘This has been a worthwhile investment for CNH?’”
Schroeder, who boasts thirty years of experience at CNH and initially worked as an engineer specializing in the transmission systems for mid-range tractors, doesn't entirely shy away from utilizing AI. This technology has been implemented throughout various sectors of the company, such as software creation, aiding in the preparation of agreements, generating queries for research and development databases, and managing content.
CNH has achieved several successes that Schroeder has been able to monitor. The firm is utilizing AI to support software developers concentrating on advanced agricultural technology and the FieldOps farm management platforms, where artificial intelligence, machine learning, and sensors are employed to digitally improve cultivation. Initial figures indicate that these developers are cutting down the time required for record-keeping by 60%, allowing them additional hours for creating new software.
An additional initiative in progress features AI-powered spraying apparatuses that utilize cameras and machine learning to distinguish between unwanted vegetation and cultivated plants when dispensing treatments in agricultural areas. Cultivators employing artificial intelligence in this fashion are capable of decreasing their herbicide consumption by 80 percent.
Alternative uses offer less tangible benefits. CNH's technical staff took part in a trial initiative enabling them to employ AI for extracting field data from scattered information sources throughout the firm. In under three minutes, this AI system can generate a summary detailing aspects of a design undertaking, CNH's criteria for creating the component, outcomes from field evaluations, and other crucial data.
Schroeder is asked by “Can you measure that?”. He states that considerable time is now being spared on tasks that previously required manual creation of such reports. However, quantifying the precise amount of time saved presents a challenge.
CNH and similar tractor manufacturers are highlighting investments in artificial intelligence and other advanced technologies, such as self-driving machinery, as a key selling point. This comes at a time when agricultural producers are experiencing significant financial strain and are acutely feeling the impacts of a changing climate. In the United Kingdom, the nation where CNH, a company incorporated in the Netherlands, bases its primary operations and corporate offices, extreme heat and a lack of rainfall resulted in approximately $1 billion in lost production during the current year. Data from The Energy and Climate Intelligence Unit, a U.K.-based non-profit organization, indicates that three out of the five most challenging harvests in the U.K.'s recorded history have taken place since 2020.
Just 3% of Earth's surface can be used for agriculture, yet the worldwide population expands by 35 million annually, as reported by CNH. Cultivators must enhance their productivity on farms to satisfy this increasing need.
“The biggest impact on a farmer’s profitability is the yield, besides commodity prices, obviously,” says Gerrit Marx, CEO of CNH, which ranks No. 217 on the Coins2Day 500 Europe. “In the end, we want to help the farmer make better decisions.”
Farm-equipment suppliers have been squeezed by the impact of tariffs, which has led to weakening demand for their expensive tractors, combines, and harvesters. Last month, CNH reported weaker year-over-year sales for the company’s third quarter, as shipments slowed to dealers that have been working their way through excess inventories. But even as it faces those headwinds, CNH has vowed to invest nearly $5 billion over five years into its U.S. Manufacturing and R&D facilities.
Schroeder states that “The solutions we’re developing for AG [agriculture] are really helping to feed the world,”. “I grew up on a family farm…so for me, it’s personal.”
Microsoft serves as CNH’s main technology collaborator, and discussions are ongoing with the technology leader regarding the implementation of AI tools to aid in the creation of precision-technology items. Currently, every CNH staff member can utilize the complimentary, online iteration of Microsoft Copilot, with approximately 1,000 individuals out of the “AI power users” possessing the enhanced license.
The company’s precision agricultural tech AI projects, Schroeder says, are still “mostly in the pilot phase. We have a long hill to climb.”
At the start of 2025, CNH made a public release of an AI instrument known as the “AI Tech Assistant,”. This system was implemented across numerous agricultural and construction dealerships, tasked with addressing inquiries regarding any problems with CNH-branded equipment and suggesting a course of action for repairs.
According to Marx, each individual on CNH’s worldwide executive staff is overseeing a minimum of one experimental initiative involving generative or agentic artificial intelligence in their particular areas of responsibility.
He states CNH is seeking concrete advantages for business results. A sector receiving greater attention involves employing generative AI to generate interactive, immediate understandings that can link the agricultural inputs like seeds, fertilizers, and machinery available to a farmer, alongside present and upcoming meteorological conditions, to aid in enhancing crop oversight and strategy.
“Tomorrow, the agronomist will become a set of agentic AIs that help the farmer to make bigger decisions better,” says Marx.
John Kell
Send thoughts or suggestions to CIO Intelligence here.
NEWS PACKETS
The emerging federal-versus-state battle to regulate AI. Following approximately 100 distinct statutes enacted by 38 states throughout this year's legislative period, President Trump this week moved to issue an executive order this initiative would seek to stop states from enacting legislation that limits AI. Trump and his supporters contend that excessive regulation of AI would impede the U.S.'s ability to rival China. However, state executives have voiced concerns regarding AI's effects on recruitment and jobs, consumer safeguards, deception, and other dangers, prompting them to take action due to a lack of federal oversight.
Nvidia wins Trump’s blessing to sell AI chips in China. On Tuesday, Trump announced that he had authorized Nvidia to market its H200 AI chip to China, presenting the AI chip manufacturer with a chance to pursue billions in contracts from the region that would reportedly be exclusively allocated to “approved customers.” But, the Financial Timesreported that China would restrict entry to H200 chips and that purchasers would probably need to undergo a vetting procedure demanding they justify why local suppliers can't fulfill their requirements.
Nike cuts CTO role; Deere CIO retires. Athletic-gear giant Nike has eliminated two C-suite roles, including the CTO position, as CEO Elliott Hill aims to eliminate “layers” to accelerate a turnaround plan. CTO Muge Dogan is departing after just two years in the role. She previously spent more than 16 years at Amazon. Meanwhile, Deere & Co. Announced that CIO Raj Kalathur would retire in January, concluding a 28-year tenure with the agricultural equipment maker. Kalathur has held the CIO position since 2019, directing Deere’s information technology operations and John Deere Financial, the entity offering financial solutions to those who purchase the firm's machinery. Deere has not disclosed additional information regarding Kalathur's replacement.
IBM scoops up Confluent for $11 billion. Shares of data-streaming platform Confluent jumped following the firm's acceptance of a $31-per-share cash acquisition proposal from IBM. This represents one of the technology behemoth's most significant acquisitions to date, a transaction intended to enhance its artificial intelligence capabilities. IBM projects that worldwide data consumption will more than double by the year 2028 and asserts that the IBM-Confluent partnership will facilitate quicker and more effective implementation of generative and agentic AI. According to Bloomberg reportsUnder the direction of IBM CEO Arvind Krishna, the company has focused on shifting its operations to offer AI-focused services to customers and acquiring software firms. This strategy seems to be yielding positive results, as approximately 80% of IBM's 300 clients purchasing AI offerings are new within the last two quarters, according to IBM. Told the Wall Street Journal when it reported earnings in October.
New York Times, Chicago Tribune sue Perplexity. The New York Times and the Chicago Tribune have sued Perplexity, asserting that the AI startup is reproducing and disseminating its proprietary material. This contributes to an expanding compilation of over 40 legal actions within the U.S. Where intellectual property owners have initiated lawsuits against artificial intelligence firms, the Times reports. The Times was also in court last week for its ongoing litigation with OpenAI, with the latter facing a legal setback when a federal judge determined that the creator of ChatGPT is obligated to furnish millions of de-identified conversation records from its clientele in a copyright dispute originating from a late 2023 lawsuit by the news organization.
ADOPTION CURVE
EY says that AI-driven gains are being pumped into reinvestment, not job cuts. Despite ongoing discussions about AI's influence on employment—such as the recent report by Challenger, Gray & Christmas, an outplacement firm, indicating AI has caused approximately 55,000 job cuts in 2025—leading consultancy EY contends that AI-generated cost reductions will more probably be reinvested into the company. A substantial majority of executives (96%) acknowledge AI-induced improvements in efficiency, yet their primary concern is reinvestment rather than workforce reductions.
When asked what they've done with the dollars saved from AI, these leaders report spending to bolster current AI functionalities (47%), create novel AI capacities (42%), enhance digital defenses (41%), fund research and development (39%), and improve workforce competencies through training and development (38%), as per the findings from consulting firm EY's fourth AI Pulse Survey. 17% report those gains led to reduced headcount.
“We see that a lot of companies are coming back with positive returns and are getting even more bullish in what their investment theses are,” Dan Diasio, EY global consulting AI leader, tells Coins2Day. “More of those executives are putting more capital towards AI, many of them doubling what their investments were over the course of the next 12 months.”
Findings from an EY poll corroborate Diasio's viewpoint. Roughly 27% of those surveyed are presently allocating at least a quarter of their technology spending to AI, with this proportion anticipated to almost double to 52% by 2026. The segment dedicating half or more of their IT expenditure to AI is forecast to increase fivefold, reaching 19% next year from a current 3%.
Courtesy of EY
JOBS RADAR
Hiring:
- USPTO is seeking a CIO, based in Alexandria, Virginia. Posted salary range: $208.4K-$225.7K/year.
- Signal Mutual is seeking a VP, head of IT, based in Norwalk, Connecticut. Posted salary range: $180K-$220K/year.
- Aritzia is seeking a head of cloud and infrastructure, based in Seattle. Posted salary range: $200K-$400K/year.
- Image Solutions is seeking a director of IT, based in Long Beach, California. Posted salary range: $180K-$200K/year.
Hired:
- Nationwideannounced michael Carrel is set to assume the position of CTO, a promotion following over three decades of tenure with the insurance firm. Prior to this, Carrel held the titles of SVP and CTO for Nationwide Financial, which is the financial services division of the organization. Carrel will be taking over from Jim Fowler, who is leaving to work for the telecommunications firm Lumen Technologies.
- Lumen Technologiesnamed Fowler has been appointed chief technology and product officer, commencing January 5. He will replace Dave Ward, who is leaving to take on the position of president and chief architect at the software corporation Salesforce. Fowler has been a member of Lumen’s board of directors since 2023 and will resign from this position, effective immediately, due to his new appointment. He most recently held the position of CTO at Nationwide, starting in 2018.
- Condé Nastappointed Vasanth Williams has been appointed chief product and technology officer, taking up the position this week and becoming part of the media company's senior management group. Prior to this, Williams was the chief product officer and EVP of engineering at Major League Baseball. He also previously worked in technology capacities at Amazon, Microsoft, and Yodle.
- 1-800-Flowers.com appointed Alexander Zelikovsky has been appointed as CIO, overseeing IT applications and platforms, data architecture, data management, cybersecurity, and business intelligence. Before his tenure with the online floral and gifts retailer, Zelikovsky most recently held the position of CIO at the shipping and mailing firm Pitney Bowes. He also occupied technology leadership positions at Kimberly-Clark, the maker of Huggies and Kleenex.
- Owens Corning elevated CIO Annie Baymiller has been given the additional title of EVP, a promotion that the maker of building materials stated underscores a recent organizational pledge to speed up the adoption of digital instruments and data analysis. Baymiller has held the position of the company’s CIO since 2023 and first became part of Owens Corning in 2006. She will keep her direct reporting line to CEO Brian Chambers.
- Westfield appointed Lloyd Scholz has been appointed enterprise CIO, coming to the property and casualty insurance firm from his recent position as senior managing director and CTO at insurer Markel. Before his tenure at Markel, Scholz dedicated 16 years to credit-card titan Capital One, holding executive positions concentrating on data engineering, analytics systems, cloud planning, and corporate technology.
- DXC Technology promoted Russell Jukes will take on the position of chief digital information officer, a broadened responsibility to manage the IT services and consulting firm's comprehensive digital and AI strategy. Jukes has been employed by DXC since 2017, the year the company was established by combining the enterprise services business units of Hewlett Packard Enterprise and Computer Sciences Corporation.
