8-K: AITX's RAD Deploys 10 RIO Mini Units at Midwest Site

Artificial Intelligence Technology Solutions Inc. announced its subsidiary RAD is deploying ten RIO Mini autonomous security units at a major Midwest construction project, generating recurring monthly revenue.

Summary

• Artificial Intelligence Technology Solutions, Inc. (AITX), through its subsidiary Robotic Assistance Devices, Inc. (RAD), is deploying ten RIO Mini solar-powered autonomous security trailers at a large construction project in the Midwest United States.
• The deployment is scheduled to begin shortly, with the associated subscription and software licensing already generating recurring monthly revenue (RMR) under RAD's standard commercial terms.
• Each of the ten RIO Mini units will operate with an active license for RAD's SARA (Speaking Autonomous Responsive Agent) agentic AI platform, providing autonomous monitoring, detection, and response capabilities.
• This deployment follows a previous sixteen-unit RIO Mini deployment for a separate large construction project announced on December 8, 2025, indicating a pattern of multi-unit orders and repeat adoption in the construction sector.
• RAD's solutions are designed to offer cost savings to businesses of between 35%-80% compared to traditional manned security guarding and monitoring models.
• The company has successfully completed its SOC 2 Type 2 audit, validating its internal controls for handling customer data and reinforcing credibility with enterprise and government clients.
• The security and guarding services industry is estimated to be nearly $50 billion (US).

Sentiment

Score: 8

Explanation: The announcement details a significant multi-unit deployment generating immediate recurring revenue, reinforcing a positive trend of adoption in a key industry. The company's strong leadership and validated internal controls (SOC 2 Type 2) further contribute to a very positive outlook, despite the general cautionary language typical of SEC filings.

Positives

• Deployment of ten RIO Mini units generates immediate recurring monthly revenue (RMR) for the company.
• The multi-unit deployment reinforces a pattern of repeat adoption and standardization of autonomous security within the construction sector.
• RAD's solutions offer significant cost savings, estimated between 35%-80%, compared to traditional manned security services.
• Successful completion of a SOC 2 Type 2 audit enhances the company's credibility and compliance with data protection standards for enterprise and government clients.
• The company's leadership team possesses extensive experience in security, law enforcement, and robotics innovation.
• A prospective sales pipeline includes over 35 Fortune 500 companies, indicating potential for future growth and reorders.

Risks

• The information provided does not constitute an offer to sell or solicit an offer to buy securities of Artificial Intelligence Technology Solutions, Inc.
• No information in this publication should be interpreted as any indication whatsoever of the company's future revenues, results of operations, or stock price.
• The company makes no representations or warranties, expressed or implied, as to the accuracy or completeness of the information provided.

Future Outlook

RAD is actively engaging with additional construction companies, integrators, and security providers who are evaluating autonomous security for their operational planning. The company expects to continue attracting new business and converting existing sales opportunities into deployed clients, generating a recurring revenue stream, with Fortune 500 clients having the potential for numerous reorders over time.

Management Comments

• "This deployment reflects how construction clients are standardizing on autonomous security rather than treating it as a one-off solution." Troy McCanna, Chief Security Officer and Chief Revenue Officer at RAD.
• "Large job sites demand visibility, consistency, and rapid response across constantly changing conditions. Deployments of this size show that customers understand how autonomous systems can be integrated into real world operations at scale." Troy McCanna.

Industry Context

This deployment highlights a significant trend in the construction sector towards the adoption and standardization of autonomous security solutions, moving beyond one-off applications. This aligns with broader industry shifts towards AI-driven technologies for enhanced efficiency, visibility, and substantial cost savings within the nearly $50 billion security and guarding services market.

Comparison to Industry Standards

• RAD's solutions are designed to provide cost savings of between 35%-80% when compared to the industry's existing and costly manned security guarding and monitoring model.
• The company's successful completion of a SOC 2 Type 2 audit demonstrates adherence to internal control standards for handling customer data, a critical requirement for enterprise and government clients in the security industry.

Stakeholder Impact

• Shareholders: Potential for increased revenue and market penetration, reinforcing the company's business model and growth prospects.
• Customers (Construction Companies): Benefit from significant cost savings (35%-80%) and enhanced security capabilities through autonomous monitoring, detection, and response.
• Employees: Continued growth and expansion of deployments could lead to increased operational and support roles.

Next Steps

• RAD is engaging with additional construction companies, integrators, and security providers to evaluate autonomous security as part of their operational planning.
• Organizations interested in RIO Mini and the SARA platform for active construction environments are encouraged to request a demonstration.
• AITX expects to continue attracting new business and converting existing sales opportunities into deployed clients generating recurring revenue.

Key Dates

Recommendation

The deployment of ten RIO Mini units generating recurring monthly revenue is a positive operational development, reinforcing the company's market penetration in the construction sector and validating its business model. The cost-saving proposition and SOC 2 Type 2 audit are also favorable. However, without broader financial performance metrics, profitability, and a clearer path to sustained growth and market leadership, a 'hold' recommendation is prudent for a seasoned investor. This allows for observation of continued execution and financial results before a stronger recommendation.

Keywords

AI security, Robotic Assistance Devices, RAD, RIO Mini, Autonomous Security, Construction Security, AITX, Artificial Intelligence, SARA platform, Recurring Monthly Revenue