Precision technologies and smart farming practices are spreading globally. However, there are still limited insights into how these technologies develop in newly adopted countries and adapt to different local systems, especially in emergent economies. This article aims to diagnose the technological innovation system of precision technologies within Chile's dairy sector, focusing on the possibilities of development and co-evolution. A structural-functional innovation system analysis is performed, based upon 41 semi-structured interviews. The main results indicate that precision technologies are in the implementation phase in the Chilean dairy sector, with scarce experience and undeveloped knowledge of their benefits. Moreover, there are insufficient interactions between different actors with limited information sharing due to the lack of trust as a cultural issue, affecting the development of smart farming practices. Some strategies to develop and co-evolve the technological systems are discussed, as is the need to increase trust and cooperation between the actors of the dairy sector.