Farell's side will arrive in Cardiff as the world's top-ranked side following a fine 2022 that saw them win a Test series in New Zealand, beat Rugby World Cup winners South Africa, as well as Australia, and clinch a Triple Crown.
"Having worked with him on a couple of (British and Irish) Lions tours, I think he has got a great understanding of what a good culture is and what a winning culture is," Gatland said of former dual-code international Farrell, the father of England rugby union captain Owen.
"Having come from his rugby league background and his experiences with Saracens and England and then going on to become (Ireland) head coach, I think his understanding of that is important."
Gatland, himself a former Ireland coach, added: "You are able to encompass all those elements to get a culture where you can get the best out of your players.
"He has definitely got the skill and the ability to be able to do that."
Wales won just three matches last year, suffering home defeats by Italy and Georgia.
That prompted the Welsh Rugby Union to sack coach Wayne Pivac and bring in Gatland for a second stint.
Gatland won four Six Nations titles and three Grand Slams in his first spell at the helm, from 2007 to 2019 and also reached the World Cup semi-finals twice.
This year's World Cup in France is now just some seven months away, leaving Gatland with little time to turn the team's fortunes around.
Wales, however, head into this weekend's clash having won their last four Six Nations matches at home to Ireland.
"I suppose the free hit for us is that the expectation and pressure is on them (Ireland) to win as favourites," Gatland added.
"The secret, and I am sure Andy will be talking about this, is that you don't run away from that, you look to embrace the expectations of being the number one team in the world.
"That is definitely the attitude I would be taking if I was in the Ireland camp. I've had that experience in the past with Wales, having to handle the favourites' tag.
"We had that experience in 2018 and 2019 with Wales. We went through 14 matches unbeaten, and the thing about that is you've got a team that has composure, takes their moment and is able to manage games."
