The Race To Replace Human Guards With Security Robots Is Heating Up (OTC:AITX, NASDAQ:KSCP)

Artificial Intelligence Technology Solutions (OTC:AITX) and Knightscope (NASDAQ:KSCP) represent two different ways to invest in the development of the security robot market.

These companies are battling for a piece of the security robot market, that could be worth over $100 Billion by 2030

While both of these companies are some of the top names in the market, they are also diversified and operate other business units as well, though they may not be as interesting in the minds of investors due to the slower pace of growth. 

Knightscope was founded in 2013 and specializes in the design and manufacturing of autonomous security robots for indoor and outdoor surveillance use. Its offering currently includes three fully autonomous models, namely K1, K3, and K5. A fourth model, named K7, is under development for outdoor, multi-terrain use. The company also offers blue light emergency communications systems that help protect the places people live, work, study, and visit.

Artificial Intelligence Technology Solutions specializes in robotics and artificial intelligence-based hardware and software solutions. The company’s main mission is to deliver industry leading AI-based security and safety solutions that empower organizations to reduce their reliance on human personnel and legacy proptech and solve their complex security challenges. The company has three subsidiaries, including Robotic Assistance Devices (RAD), Robotic Assistance Devices Group, and Robotic Assistance Devices Mobile.

RAD features products like ROSA, The Security Industry’s First and Only Purpose-Built Robot Dog, RADDOG™ 3S  and security robots such as ROAMEO. In addition to this, the company also develops consumer software tools such as RAD Light My Way and the RAD Device Placement System. 

All of AITX’s solutions are specifically designed to provide cost savings to businesses of between 35%-80% when compared to the industry’s existing and costly manned security guarding and monitoring model. RAD delivers these tremendous cost savings via a suite of stationary and mobile robotic solutions that complement and, at times, directly replace the need for human personnel in environments better suited for machines.

According to Polaris Market Research, the global security robot market was valued at $31.36 billion in 2022 and is expected to grow to $116.44 billion by 2030, representing a CAGR of 17.65%. A deeper look at the report reveals that the patrolling segment is anticipated to grow fastest owing to an increase in demand for the highest level of security on several premises, commercial guard facilities, and increased government investment to set up improved and developed Managed Security Robotics Services, which bodes well for both Knightscope and AITX.

Right now, the United States has a total population of 325 million, and around 700,000 police personnel in federal, local, and state agencies are available to be tasked with safeguarding the general public. That means that there’s insufficient force to cover the whole population efficiently, and security robots will need to fill this gap. However, this is likely to turn out to be a fiercely competitive market thanks to the rapid pace of technological advancements. Some crucial aspects that will differentiate companies in the space will include the ability of the robots to change terrain in dangerous environments, perform analytical-based surveillance, and perform other types of actions.

For investors looking for the best way to play this opportunity, here’s a quick overview of how AITX and Knightscope stack up against each other.

The Superior Technology

Right off the bat, Artificial Intelligence Technology Solutions (OTC:AITX) sets itself apart from Knightscope (NASDAQ:KSCP) when looking at the leadership of the two companies. Although KSCP’s CEO has an impressive history with an illustrious career at Ford, where he held several positions including component, systems, and vehicle engineering,  

AITX CEO, who basically wrote the book on AI in the 90s called the ARS (Autonomous Remote Services) Manifesto, has been working closely with law enforcement. He is a seasoned leader in the physical security industry with over 25 years of experience holding various roles across multiple disciplines.

Unfortunately, Knightscope’s autonomous robots have had a number of public mishaps since their debut. For instance, a Knightscope robot has in the past committed “suicide” by falling into a puddle, while another actively drove past a woman being attacked in a parking lot instead of intervening. Furthermore, KSCP is stuck with BlueLight, which is an antiquated system without modern features or sensors. 

Blue light systems, with their tall poles and flashing lights, have been a common sight on campuses for decades. When activated, students can communicate with campus security officers through the speaker system. However, these passive systems have inherent downsides, like Locating and reaching a blue light tower in an emergency can be time-consuming.

To address these limitations, AITX’s RAD has developed the ROSA security robot, paired with the RAD Light My Way mobile phone application. ROSA, an autonomous security robot equipped with cameras, lights, a visual display, and two-way communication, leverages AI to detect potential threats and intervene effectively. Its ability to issue verbal warnings, activate bright lights, and alert authorities autonomously sets it apart from traditional blue light systems.

AITX has also continued pushing the boundaries of innovation and recently unveiled RADDOG AI, the world’s first AI powered security dog, which has been extremely well received and is currently the star of FOX’s Stars on Mars TV show.

Conclusion 

While Knightscope struggles to innovate in the space, AITX continues to push the envelope with technology such as fully autonomous ai powered robots and deep analytic tools like firearm detection and more. In fact, the broader security industry isn’t too keen on Knightscope’s robots due to their design, lack of proper guarding tools, and overall flash over function design.

However, this is no surprise considering that KSCP spends more on its marketing budget than innovation and R&D. So far, AITX has spent over $50 million on R&D, resulting in more robust security solutions.

For now, it appears that AITX is far better placed to capitalize on the massive opportunity in the autonomous security market due to its superior offerings.