This study examines the adoption of smart irrigation systems among Ethiopian coffee farmers in the highlands. Data was collected through structured interviews with a sample of 150 randomly selected coffee farmers, supplemented with remote sensing data for validation. A total of 67% of surveyed farmers reported adopting at least one type of smart irrigation system within the study period. The main drivers were increased water efficiency (mean increase in yield by 25%) and reduced labour costs ($10 per hectare). The adoption rate was higher among younger farmers with better access to technology, indicating a potential for further diffusion through targeted interventions. Investment in farmer training programmes and infrastructure support can accelerate the adoption of smart irrigation systems, enhancing agricultural productivity sustainably. Model estimation used $\hat{\theta}=argmin_{\theta}\sum_i\ell(y_i,f_\theta(x_i))+\lambda\lVert\theta\rVert_2^2$, with performance evaluated using out-of-sample error.