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Artificial intelligence is increasingly positioned as a transformative force for climate-smart agriculture, promising simultaneous gains in productivity, efficiency, and sustainability. Across agricultural policy, innovation systems, and digital farming markets, AI is presented as a solution to climate uncertainty, resource scarcity, labour pressures, and food-security demands. This review examines that promise through a critical lens. The dominant narrative surrounding AI-enabled climate-smart agriculture often treats optimization as a neutral technical process. Yet algorithmic systems do not merely improve farming decisions; they also define what counts as efficiency, which outcomes are prioritised, and whose knowledge becomes authoritative. This raises important questions about power, agency, and sustainability. The objective of this critical review is to interrogate the politics of AI in climate-smart agriculture. It synthesises evidence on the tensions between productivity, efficiency, sustainability, farmer agency, data sovereignty, and governance. The review asks how algorithmic optimization reshapes agricultural futures and who benefits from this transformation. The review draws on  peer-reviewed articles published across agricultural innovation, sustainability science, digital agriculture, artificial intelligence, and critical data studies. Rather than reporting new empirical data, it develops a critical synthesis of existing debates and identifies conceptual gaps in current scholarship. The review finds that algorithmic farming is not simply a technical evolution of precision agriculture. It is a contested political terrain in which sustainability goals, commercial interests, data infrastructures, and farmer autonomy are negotiated. A critical research agenda is needed to ensure that AI contributes to equitable, democratic, and ecologically resilient agricultural futures.