Hardware Eating Software: Robots are the Real Trend in AI Revolution

The AI industry is on an unstoppable trajectory.

And what is going to accelerate it is the practical application in the real world of AI via robots and a definitive pivot to hardware.

Perhaps the biggest winner so far is GPU giant NVIDIA, which recently surpassed a $3 trillion market cap1—a testament to the surging value of AI technologies.

Big tech is investing billions in AI data centers worldwide.2

Expert analysts at McKinsey forecast that generative AI could generate between $2.6 trillion and $4.4 trillion in value across various industries.3

Other analysts predict the Global AI Market will grow at a mind-boggling 41.8% CAGR through 2031.4

But with this rapid growth comes a rising concern … and opportunity: security.

Ex-Google CEO Eric Schmidt warns that future AI data centers might need to be on military bases, surrounded by machine guns, to protect valuable data.5


6

And it’s not just data centers that need protection. Campus crime rates are climbing back to pre-pandemic levels, putting the engineers and developers of tomorrow at risk today.7

This brings us to a crucial point: the urgent need for advanced physical security solutions in our increasingly AI-driven world.

Cue the AI-powered robots taking the world by storm.  Not tomorrow but today.

One exciting example is robot startup Figure AI – valued at $2.6 billion – which raised $675 million from investors like Jeff Bezos, Microsoft and even NVIDIA itself.8

Across limitless industries ranging from healthcare to IT, billions of dollars are being spent to develop new groundbreaking robots.


Robotics Investments by Month9

And there’s one AI security robotics company leading the global security robots market – a market already worth $32 billion in 2021 and projected to grow at a remarkable CAGR of 17.65%, reaching nearly $120 billion by 2030.10

This company could potentially be one of the most undervalued stock on the NASDAQ, trading at under 30 cents with a market cap of $35 million.

We’re talking about AI-security robot pioneer, Knightscope, Inc. (NASDAQ:KSCP) …

Knightscope, Inc. (NASDAQ:KSCP) is a cutting-edge security technology company based in Silicon Valley, specializing in Autonomous Security Robots (ASRs) designed to deter, detect, and report crime using state-of-the-art technology – a practical real world application of AI

In 2022, over a million violent crimes were reported in the US, with many more likely unreported.11

Right now, there are over 331 million Americans but only 660,288 full-time law enforcement officers12 and just over a million security guards13—that’s roughly one protector for every 200 people.

And let’s be honest… That’s NOT a safe statistic at all.

Knightscope’s robots are designed to fill this gap, providing additional eyes, ears, and a voice to law enforcement.

Their ASRs feature HD 360-degree recording, thermal cameras, and public address speakers, offering constant monitoring and rapid response capabilities.

Knightscope, Inc. (NASDAQ:KSCP) has secured federal authorization through an Authority to Operate (ATO) from FedRAMP, making its technology available to ALL federal agencies.14

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Since April 2024, Knightscope has secured over 30 new contracts, valued at over $1 million—this is in addition to a 128% increase in revenue for 2023.15

This includes a $1.25 million contract with Rutgers University16 and a $1.2 million order for K1 Call Boxes.17

The company is also being utilized by police departments across the US. They completed pilot with the NYPD for a K5 robot to patrol a Manhattan subway station.18

Knightscope, Inc. (NASDAQ:KSCP) also secured the trust of Huntington Park Police Department once again, which just renewed a contract for the sixth consecutive year.19

This extension ensures that the K5 ASR, which was just featured in a Citi report alongside Tesla and Boston Dynamics, will continue its crucial role in safeguarding Salt Lake Park, a move that has already led to a significant reduction in crime and enhanced public safety.

Other notable clients include Port Authorities of New York and New Jersey, Penn Entertainment, and the University of Tennessee.

On top of all that, Knightscope, Inc. (NASDAQ:KSCP) just began sales of its Automated Gunshot Detection (AGD) technology, slashing response times to dangerous situations down to just two seconds.

According to InvestorPlace, Knightscope could even be a surprise hit among must-own AI stocks.20

Knightscope’s momentum caught the attention of Ascendiant Capital Markets analyst Edward Woo, who highlighted the company’s Q3 successes as a promising indicator for 2024 in a recent research report.

Knightscope, Inc. (NASDAQ:KSCP) is setting new standards for public safety, making it a formidable force in the security technology industry in a market with impressive growth potential.

Let’s take a look at some of the reasons this company is a force to be reckoned with in the public safety arena.

7 Reasons

to Pay Close Attention to Knightscope (NASDAQ:KSCP)

1

Rapid Revenue Growth: : Knightscope, Inc. (NASDAQ:KSCP) reported a 128% year-over-year revenue in 2023, generating $12.8 million.21 This substantial increase underscores the company’s expanding market presence and rapidly growing base of satisfied customers.

2

High Market Potential: The global security robots market is projected to grow at a CAGR of 17.65%, reaching nearly $120 billion by 2030.22 This growth presents a significant opportunity for Knightscope to capture a larger market share.

3

Innovative Technology: Knightscope’s Autonomous Security Robots (ASRs) are equipped with state-of-the-art technology, including HD 360-degree recording, thermal cameras, and public address speakers, enhancing their crime detection and deterrence capabilities. As well, Knightscope’s new automated gunshot detection (AGD) technology can identify and report gunshots within two seconds, significantly improving response times and public safety.

4

Strategic Contracts and Partnerships: Knightscope, Inc. (NASDAQ:KSCP) has secured over 30 new contracts since April 2024, demonstrating its growing market presence and credibility. These deals include a $1.25 million contract with Rutgers University and a $1.2 million order for K1 Call Boxes. Additionally, Knightscope has received federal authorization through an Authority to Operate (ATO) from FedRAMP, allowing its technology to be utilized by federal agencies.

5

Cost-Effective Business Model: Knightscope’s Machine-as-a-Service (MaaS) model provides a cost-effective alternative to traditional security services, with operating costs ranging from $0.75 to $9.00 per hour compared to $15 to $85 per hour for human guards or officers. This model ensures long-term recurring revenue streams for the company.

6

Experienced Leadership Team: Knightscope, Inc. (NASDAQ:KSCP) is led by a team of seasoned professionals, including Co-founder & CEO, Chairman William Santana Li who holds over 7 million shares, and is a former senior executive at Ford Motor Company. He is supported by other experts in technology and security, whose experience and vision further drive Knightscope’s strategic growth.

7

Future Expansion and Technological Innovation: Knightscope is continuously developing new technologies and expanding its product offerings. Upcoming advancements include integrating drone technology with its ASRs, enhancing the Knightscope Emergency Management System (KEMS), and expanding the AGD system to improve public safety and response times.

Tapping into a $120 Billion Market

The global security robots market is projected to hit $120 billion by 2030.22 This growth opens a golden door for innovators like Knightscope, Inc. (NASDAQ:KSCP).

As more organizations see the value in autonomous security, the demand for Knightscope’s robots could potentially skyrocket.

Comparable Companies in the Security Technology Space

Here’s how Knightscope, Inc. (NASDAQ:KSCP) is setting itself apart in the autonomous security robot market and stands out among other significant players in the security technology sector:

Axon Enterprise (NASDAQ: AXON): Axon equips law enforcement with Tasers, body cameras, and VR training systems.29 While Axon enhances officer tools, Knightscope offers autonomous robots for continuous, proactive surveillance. In a way, Knightscope complements Axon’s reactive approach.

Wrap Technologies (NASDAQ: WRAP): Wrap provides non-lethal restraint devices like the BolaWrap for specific suspect restraint scenarios.30

In contrast, Knightscope’s ASRs offer round-the-clock monitoring and incident response, addressing broader security needs.

OSI Systems (NASDAQ: OSIS): OSI specializes in large-scale security screening for infrastructure protection.31

While OSI focuses on stationary solutions, Knightscope provides mobile, adaptable robots for real-time threat detection and response, suitable for diverse environments.

SoundThinking (formerly ShotSpotter) (NASDAQ: SSTI): Known for gunshot detection systems, high-tech security cameras, and data analysis tools,32 SoundThinking aligns with Knightscope’s AGD system, which reports gunshots within two seconds.33

Why Knightscope, Inc. (NASDAQ:KSCP) Stands Out:

      • 24/7 Surveillance and Real-Time Analysis: Knightscope’s ASRs provide constant surveillance, real-time data analysis, and instant incident reporting. This ensures cities and various environments, from corporate campuses to public parks, are always protected.
      • AI and Machine Learning: What truly sets Knightscope, Inc. (NASDAQ:KSCP) apart is the company’s use of AI and machine learning. Their robots detect anomalies, identify threats, and respond swiftly, providing a significant competitive edge in smart security solutions.
      • Adaptability and Coverage: Unlike stationary security solutions, Knightscope’s robots are mobile and adaptable, capable of operating in diverse environments. This flexibility allows them to meet the growing demand for efficient and effective security.

Innovative Business Model for Recurring Revenue

Knightscope’s (NASDAQ:KSCP) innovative Machine-as-a-Service (MaaS) business model sets it apart from traditional security services.

Instead of a one-time sale, Knightscope offers its ASRs on a subscription basis. Clients pay between $0.75 to $9.00 per hour, significantly lower than the $15 to $85 per hour cost of human security guards.

Consider this: the base salary for a police officer ranges from $57,000 to $67,000.34  When you factor in additional costs such as benefits, training, and overtime, the total expenditure can climb to $149,000 per year.35

It’s a no-brainer for clients, and a homerun for Knightscope, Inc. (NASDAQ:KSCP).

This subscription model ensures recurring revenue. For example, a single K5 ASR can generate $255,000 over five years, providing stable and predictable income.36

Total cash outflows over the period amounted to ($84,530), resulting in a margin of $170,470 or 67% as the long-term target.37

Why is this important?

To put it simply: long-term returns.

This model ensures consistent cash flow, providing financial stability and growth potential.

Knightscope’s MaaS model translates to reliable, ongoing revenue streams, making it a smart investment in the booming security technology sector.

Plus, the company has already helped solve crimes, like catching a hit-and-run suspect and identifying a gunman—so long-term returns both financially, and socially.

Delivering Real-World Impact

Knightscope’s (NASDAQ:KSCP) ASRs aren’t just about high-tech features—they deliver real-world results.

Cutting Crime by 46%: In various deployments, Knightscope robots have dramatically reduced crime rates. For instance, areas patrolled by Knightscope, Inc. (NASDAQ:KSCP) robots have seen up to a 46% drop in crime,38 proving their effectiveness as a deterrent.

Silicon Valley Success: At a prominent Silicon Valley corporate campus, a K5 ASR helped cut vehicle break-ins by over 50% in just one year. The robot’s constant surveillance and immediate alerts made the area much safer for everyone.

Mall Security Boost: In Southern California, a shopping mall plagued by vandalism and theft saw a 20% decrease in these incidents within six months of deploying Knightscope’s K3 robots. Their ability to patrol indoor spaces and detect threats played a crucial role.

Parking Lot Patrol: Knightscope robots have also been effective in reducing criminal activities in parking lots. For instance, at a retail center, the presence of Knightscope’s K5 ASR resulted in a 22% decrease in reported incidents over three months.

Hospital Security: At a large hospital, the implementation of Knightscope robots resulted in a 30% reduction in trespassing and unauthorized entries within the first year of deployment.

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Law Enforcement Collaboration: In another case, a Knightscope robot identified a vehicle linked to criminal activity in a parking lot. This quick alert led to the arrest of a suspect involved in multiple burglaries, showcasing how Knightscope’s technology aids law enforcement.

Knightscope’s (NASDAQ:KSCP) robots don’t just promise security—they deliver it, making communities safer and setting new standards for public safety.

How Knightscope is Investing in the Future of Public Safety

Knightscope, Inc. (NASDAQ:KSCP) is truly leading the way in public safety innovation, constantly developing new technologies to keep us safe.

Here are some of the upcoming innovations they have cooking in their R&D department:

Exciting New Gunshot Detection Tech: Knightscope’s Automated Gunshot Detection (AGD) responds to requests from schools, corporations, airports, hotels, and cities. It helps stop active-shooter events, reduces false alarms, and integrates with other security solutions. Notifications are sent in less than two seconds, whether the shots are indoors or outdoors. This quick response can save lives. Sales of Knightscope’s gunshot detection system began only in Q4 2023.

NOTE: The market for gunshot detection systems is expected to reach $646 million by 2031 in North America.39

Expanding Robot Network: Knightscope, Inc. (NASDAQ:KSCP) is expanding its network of robots across more locations. More robots mean better data, faster response times, and safer public spaces.

Introducing KEMS: The Knightscope Emergency Management System (KEMS) enhances over 7,000 devices, including K1 Blue Light Towers, E-Phones, and Call Boxes, with real-time monitoring, instant error detection, and performance reporting. This makes our public safety infrastructure smarter and more efficient.40

Drone Integration: Knightscope plans to partner with Draganfly (NASDAQ:DPRO) (CSE: DPRO) to integrate drone technology with its ASR tech.41 Imagine ground and aerial surveillance working together seamlessly. Greater coverage, greater security.

RTX Premium: Enhanced Remote Monitoring Services: Knightscope has recruited a team of Risk & Threat Exposure (RTX) Analysts to provide clients with remote, event-based monitoring using Knightscope technologies. This move brings RTX Premium (formerly Knightscope+) in-house, enhancing coordination, quality control, flexibility, and incident management.42

As Knightscope, Inc. (NASDAQ:KSCP) rolls out new technologies and expands its reach, the company’s market presence and revenue are expected to grow substantially.

Meet the Minds Guiding Knightscope’s Security Revolution

The same team that founded, funded, grew, and listed Knightscope, Inc. (NASDAQ:KSCP) over the last decade is leading the company today. They plan to continue driving growth organically over the next two to three decades, all while achieving their goal of making America safer. Among the talented roster are:

William Santana Li Chairman and CEO

At 28, William Santana Li became the youngest senior executive at Ford Motor Company worldwide. With over 30 years of experience, he has a rich history in the global automotive industry and has founded and led multiple startups. At Ford, Li held various business and technical roles, including Director of Mergers & Acquisitions. He later secured $250 million in financing to found and serve as COO of GreenLeaf LLC, a Ford subsidiary. Li also founded Carbon Motors Corporation, focusing on developing the world’s first purpose-built law enforcement patrol vehicle.
Stacy D Stephens EVP and Chief Client Officer

Stephens co-founded Carbon Motors Corporation with Li, where he led marketing operations, sales, product management, and client service. He established the “Carbon Council,” a user group of over 3,000 law enforcement professionals, actively serving 2,200 agencies across all 50 states.
Mercedes Soria EVP and Chief Intelligence Officer / CISO

With over 15 years of experience in systems development and software architecture, Soria is a technology professional who previously led IT strategy at Carbon Motors Corporation and is former Deloitte. Her expertise drives Knightscope’s intelligence and technological advancements.
Apoorv S Dwivedi EVP and Chief Financial Officer

Dwivedi brings extensive finance and corporate strategy experience. He served as CFO of Nxu, Inc. (NXU), leading it to a successful Nasdaq listing. His background includes key roles at Cox Automotive, Workiva, and General Electric, where he honed his skills in finance operations and corporate growth.
Aaron J Lehnhardt EVP and Chief Design Officer

Lehnhardt, Knightscope’s Chief Design Officer since 2015, previously led design at California Motors and co-owned Lehnhardt Creative LLC. His work spans advanced vehicle design, military projects, and innovative personal mobility solutions.

This experienced leadership team drives Knightscope’s vision and success, leveraging decades of expertise to revolutionize public safety with cutting-edge technology.

RECAP: 7 Reasons

to Pay Close Attention to Knightscope, Inc. (NASDAQ:KSCP)

1

Rapid Growth: 128% revenue increase in 2023, generating $12.8 million.

2

Market Potential: Security robots market projected to reach $120 billion by 2030.

3

Advanced Technology: ASRs with HD cameras and thermal imaging; AGD system reports gunshots within two seconds.

4

Strategic Deals: Over 30 new contracts secured, including major deals with federal agencies and large institutions, expanding Knightscope’s market presence and credibility.

5

Cost-Effective Model: Machine-as-a-Service (MaaS) costs $0.75 to $9.00 per hour versus $15 to $85 for human guards.

6

Experienced Leadership: Led by former Ford executive William Santana Li, and the same team of experienced founders.

7

Future Innovations: Integrating drones, enhancing KEMS, and expanding AGD technology.

As we’ve highlighted, the need for robust security solutions is greater than ever.

Knightscope, Inc. (NASDAQ:KSCP) is pioneering AI-driven security technology to meet this critical demand.

Don’t miss your chance to engage with the rapidly expanding $55 billion security robots market.43

Add Knightscope, Inc. (NASDAQ:KSCP) to your watchlist and follow their journey as they redefine public safety.

Transformative technology like this is rarestay ahead of the curve and watch what Knightscope achieves next.

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