The agriculture in Iraq is facing drastic environmental difficulties which include water stress, extreme temperatures, and soil depletion. These are the potentials of food shortage and adverse impacts on the economics of the region. Protected agriculture, specifically greenhouse farming, can become a potential solution, but many technologies in this sphere have not been developed yet. This paper investigates the value of Artificial Intelligence AI technologies for the further development of protected agriculture and describes the positive and negative effects of this development. In detail, several AI technologies such as machine learning and prediction algorithms, predictive analytics, and automated climate control equipment can substantially optimize the work of a greenhouse in terms of irrigation, pesticide usage, and proper resource allocation based on the requirements of specific plants. The data was collected using mixed methods, that is, some of it was quantitative and described some indexes such as crop increasing, the reduction of resource usage, and economic advantages of AI-based agriculture. At the same time, a qualitative part of the study was realized using interviews and focus groups with small and medium farmers, agricultural specialists, and government officials. The results show that for all kinds of farms, AI solutions are significantly increasing the yield which for some farms constitutes 22%, while the water consumption is cut-off by 30%. AI farming can also regulate extreme weather conditions, considerably increasing the consistency of farming and resource usage. While the positive effects exist, it cannot be denied that the obstacles to AI adoption such as high prices, lack of qualification, and undeveloped infrastructure if we speak about the remote areas. The latter is especially critical for small-scale farmers who cannot accommodate the huge initial costs of AI software and mechanical assistants and, in many cases, have no skills to use them properly. One more issue is that it is still problematic for many farmers to accept AI revolution as it results in many losing their jobs and undermines the ideas of the best economical use of AI power. The study shows that this is especially true for small farmers that constitute a significant sector of the agricultural industry in Iraq.