(September 16, 2025) — Jean Smith-Gonnell and Cole White of Troutman Pepper Locke LLP examine how technology is transforming cannabis businesses. The cannabis industry is evolving at record speed, and technology sits at the center of that shift. From cultivation to retail, state-licensed operators are using automation, robotics, and artificial intelligence (AI) to boost efficiency, cut costs, and reinforce compliance. Yet innovation also introduces unique challenges because cannabis remains federally illegal. This patchwork of state rules means every new technology must be carefully calibrated to regulatory frameworks.
Efficient production underpins the cannabis supply chain. Growers and processors must maintain consistency, meet strict testing standards, and operate with thin margins. New AI and automation technology allows cultivators and manufacturers to streamline these processes, increase yields, and strengthen compliance documentation.
AI-enabled canopy monitoring is a prime example. Monitoring plant health manually is labor-intensive. With AI-driven technology, sensors collect daily data on CO₂, humidity, and temperature, using machine learning to detect microclimate changes and early threats. Cable-suspended robots like Neatleaf’s Spyder continuously scan crops, offering real-time analytics and reports showing yield gains up to 20%. This technology reduces crop loss, improves consistency, and creates data logs for compliance inspections.
Similarly, optical grading systems and automated trimmers powered by AI technology evaluate bud size, trichome density, and mold risk far more consistently than manual inspection. During extraction, AI-driven equipment automatically adjusts pressure, temperature, and solvent levels to optimize safety and output.
Robotic pre-roll systems provide another case study. Pre-rolls are among the fastest-growing product categories, but hand production is time-consuming. Automated filling, wrapping, and coating equipment uses precision technology to produce thousands of pre-rolls per hour, improving dosing accuracy and compliance with potency rules.
AI-guided packaging automation also matters. Robots equipped with computer vision recognize finished products, sort them, and place them into cases. This technology reduces labor, minimizes errors, and maintains chain-of-custody integrity by integrating directly with seed-to-sale tracking requirements.
At retail, businesses must balance customer experience with rigorous age verification, labeling, and inventory tracking. AI-based ID scanners illustrate how technology supports compliance. These systems authenticate IDs, detect forgeries, and flag repeat attempts to bypass purchase limits, though human oversight remains necessary in some jurisdictions.
Automated vending kiosks combine ID scanning with facial recognition to complete secure transactions in under a minute. This technology also manages inventory, prints labels, and logs each sale with state-mandated data. While adoption depends on regulatory approval, such systems show how technology can extend secure access and reduce staffing needs.
From canopy monitoring to automated vending, technology is reshaping the cannabis industry at every stage. Successful tools AI systems with robust documentation, packaging robots linked to seed-to-sale systems, and kiosks satisfying age-gating rules demonstrate how technology enhances compliance rather than evading it.
As federal and state frameworks evolve, businesses that embrace compliant technology will thrive. For legal and business professionals, the takeaway is clear: Innovation in cannabis is not about avoiding regulation but about using technology to operate more efficiently within it.
By Jean Smith-Gonnell, Esq., and Cole White, Esq., Troutman Pepper Locke LLP