AITX’s RAD Receives Multiple RIO Contract Renewal from Large Client

Rhea-AI Summary

Robotic Assistance Devices (RAD), a subsidiary of Artificial Intelligence Technology Solutions (OTCPK:AITX), has announced the renewal of a contract for two RIO™ units from one of its largest clients. This marks the first of many expected renewals, highlighting RAD's strong customer retention. The company reports a year-to-date attrition rate of less than 3% for deployed and revenue-producing units, outperforming their target of less than 5% per quarter.

RAD's RIO units feature dual ROSA™ (Responsive Observation Security Agent) systems, which offer AI-driven security analytics including human, firearm, and vehicle detection. The company plans to provide a year-to-date sales summary and full-year SaaS and revenue guidance on August 1, 2024. RAD's innovative AI-driven Solutions-as-a-Service model aims to reduce security costs for businesses by 35%-80% compared to traditional manned security services.

Positive

• Contract renewal for two RIO units from a major client, indicating customer satisfaction
• Low year-to-date attrition rate of less than 3%, outperforming the target of 5% per quarter
• Expanding client base with potential for recurring revenue from Fortune 500 companies
• AI-driven security solutions offering 35%-80% cost savings compared to traditional manned security

Negative

• None.

Detroit, Michigan, July 30, 2024 (GLOBE NEWSWIRE) -- Robotic Assistance Devices, Inc. (RAD), a subsidiary of Artificial Intelligence Technology Solutions, Inc., (the “Company”) (OTCPK:AITX), is pleased to announce the first of many expected contract renewals from one of RAD’s largest clients. This first renewal is for two RIO^™ units deployed last year. This client, who already has many RIO units deployed, continues to expand their use of RAD’s innovative security solutions even as they continue to expand their systems.

“Our organization stresses the best customer service and technical performance in the industry, and it shows with our exceptionally low attrition rates,” commented Mark Folmer, CPP, PSP, FSyI, President of RAD. “This particular client continues to expand and renew. We deeply appreciate and value our clients' trust in us, and we are committed to exceeding their expectations with every deployment.”

Steve Reinharz, CEO/CTO of AITX and RAD, commented, “This is our first renewal-specific press release. However, we have hundreds of devices that have been renewed over the years. In fact, our year-to-date attrition, specifically customer cancellations, is less than 3% of total deployed and revenue producing units. Since our target is to limit attrition to less than 5% per quarter, we are overperforming, exactly what our teams strive to do.”

The Company noted that it will provide a year-to-date sales roll up on August 1, 2024, as well as provide full-year SaaS and revenue guidance.

Sitting atop a standard RIO configuration are dual ROSA^™ units. ROSA is a multiple award-winning, compact, self-contained, portable, security and communication solution that can be installed and activated in about 15 minutes. ROSA’s AI-driven security analytics include human, firearm, vehicle detection, license plate recognition, responsive digital signage and audio messaging, and complete integration with RAD’s software suite notification and autonomous response library. Two-way communication is optimized for cellular, including live video from ROSA’s high-resolution, full-color, always-on cameras. RAD has published six Case Studies detailing how ROSA has helped eliminate instances of theft, trespassing and loitering at retail centers, hospital campuses, multi-family communities, car rental locations and construction sites across the country. 

AITX, through its subsidiary, Robotic Assistance Devices, Inc. (RAD), is redefining the $25 billion (US) security and guarding services industry through its broad lineup of innovative, AI-driven Solutions-as-a-Service business model. RAD 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. All RAD technologies, AI-based analytics and software platforms are developed in-house. 

RAD has a prospective sales pipeline of over 35 Fortune 500 companies and numerous other client opportunities. RAD expects to continue to attract new business as it converts its existing sales opportunities into deployed clients generating a recurring revenue stream. Each Fortune 500 client has the potential of making numerous reorders over time.

About Artificial Intelligence Technology Solutions (AITX)

AITX is an innovator in the delivery of artificial intelligence-based solutions that empower organizations to gain new insight, solve complex challenges and fuel new business ideas. Through its next-generation robotic product offerings, AITX’s RAD, RAD-M, RAD-R, and RAD-G companies help organizations streamline operations, increase ROI, and strengthen business. AITX technology improves the simplicity and economics of patrolling and guard services and allows experienced personnel to focus on more strategic tasks. Customers augment the capabilities of existing staff and gain higher levels of situational awareness, all at drastically reduced cost. AITX solutions are well suited for use in multiple industries such as enterprises, government, transportation, critical infrastructure, education, and healthcare. To learn more, visit www.aitx.ai, www.radsecurity.com, www.stevereinharz.com, www.radgroup.ai, www.raddog.ai, and www.radlightmyway.com, or follow Steve Reinharz on Twitter @SteveReinharz.

CAUTIONARY DISCLOSURE ABOUT FORWARD-LOOKING STATEMENTS

The information contained in this publication does not constitute an offer to sell or solicit an offer to buy securities of Artificial Intelligence Technology Solutions, Inc. (the “Company”). This publication contains forward-looking statements, which are not guarantees of future performance and may involve subjective judgment and analysis. The information provided herein is believed to be accurate and reliable, however the Company makes no representations or warranties, expressed or implied, as to its accuracy or completeness. The Company has no obligation to provide the recipient with additional updated information. No information in this publication should be interpreted as any indication whatsoever of the Company’s future revenues, results of operations, or stock price.

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Steve Reinharz
949-636-7060
@SteveReinharz

FAQ

What is the contract renewal announced by AITX's subsidiary RAD on July 30, 2024?

RAD announced the renewal of a contract for two RIO™ units from one of its largest clients, marking the first of many expected renewals.

What is AITX's year-to-date attrition rate for deployed and revenue-producing units as of July 2024?

AITX reported a year-to-date attrition rate of less than 3% for deployed and revenue-producing units, outperforming their target of less than 5% per quarter.

When will AITX provide its year-to-date sales summary and full-year guidance?

AITX plans to provide a year-to-date sales summary and full-year SaaS and revenue guidance on August 1, 2024.

What cost savings does AITX's RAD solutions offer compared to traditional security services?

RAD's AI-driven Solutions-as-a-Service model aims to reduce security costs for businesses by 35%-80% compared to traditional manned security services.