Automation and robotics are the key players in modern agriculture. They offer potential solutions for challenges related to the growing global population, demographic shifts, and economic status. This review paper evaluates the challenges and opportunities of using new technologies and the often-missed link between automation technology and agricultural economics. Through a systematic analysis of the literature, this study explores the potential of automation and robotics in farming practices, as well as their socio-economic effects, and provides strategic recommendations for those involved. For this purpose, various types of robots in different fields of agriculture and the technical feasibility and challenges of using automation have been discussed. Other important factors, including demographic shifts, labor market effects, and economic considerations, have been analyzed. Furthermore, this study investigates the social effects of automation, particularly in terms of employment and workforce adaptation. It finds that, while automation boosts productivity and sustainability, it also causes labor displacement and demands considerable technological investment. This thorough investigation fills a crucial gap by assessing economic sustainability, labor market evolution, and the future of precision agriculture. It also charts a course for further research and policy-making at the intersection of agricultural technology and socio-economic fields and outlines a future roadmap for further research and policy.