8-K: AITX's RAD Security Features in Major Studio Film 'Mercy'

Artificial Intelligence Technology Solutions' RAD autonomous security solutions were featured in the recently released science fiction thriller "Mercy," highlighting real-world AI technology in a cinematic context.

Summary

• Artificial Intelligence Technology Solutions, Inc. (AITX) and its wholly owned subsidiary, Robotic Assistance Devices, Inc. (RAD), announced their autonomous security solutions were included in the recently released science fiction thriller "Mercy."
• The film opened in theaters nationwide on January 23, 2026, and drew from live autonomous systems to ground its AI-driven storyline.
• RAD provided one RIO 360, one ROSA, and two RADDOG LE2 units for the production, which are commercially deployed autonomous security systems.
• The production team selected real, existing RAD platforms to emphasize realism in the narrative, rather than relying on fictional devices.
• Despite being in several scenes, the final cut of the film severely limited the exposure of RAD devices, which was the director's artistic choice.
• RAD plans to showcase its full portfolio of autonomous security solutions at ISC West 2026.
• AITX, through RAD, aims to redefine the nearly $50 billion (US) security and guarding services industry.
• RAD solutions are designed to provide cost savings to businesses of between 35%-80% when compared to manned security guarding and monitoring.
• The company has a prospective sales pipeline of over 35 Fortune 500 companies and expects to attract new business and generate recurring revenue.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a positive development for brand visibility and validation of technology, though the direct financial impact is not quantified. The limited screen time is a minor drawback, but the overall message of real-world application is strong.

Positives

• Product placement in a major studio film ("Mercy") provides significant brand visibility and market awareness for RAD's autonomous security solutions (RIO 360, ROSA, RADDOG LE2).
• The film's use of real, deployed RAD technology reinforces the authenticity and advanced capabilities of AITX's AI-driven security systems, validating their real-world applicability.
• Management views the inclusion as validation that film, television, and streaming productions are actively seeking real autonomous security technology, not just props or concepts.
• The company's operations and internal controls have successfully completed a SOC 2 Type 2 audit, enhancing credibility with enterprise and government clients who require strict data protection and security compliance.
• RAD's solutions offer substantial cost savings (35%-80%) compared to traditional manned security, presenting a strong value proposition.
• A prospective sales pipeline includes over 35 Fortune 500 companies, indicating strong market interest and potential for future growth and recurring revenue.

Negatives

• The final cut of the film "severely limited exposure" of RAD devices, which was the director's artistic choice, potentially reducing the overall marketing impact of the product placement.
• The filing does not provide any specific financial metrics or a direct, quantifiable revenue impact resulting from this product placement.

Risks

• The information contained in the publication does not constitute an offer to sell or solicit an offer to buy securities of Artificial Intelligence Technology Solutions, Inc.
• Appearances of RAD autonomous security solutions and related technologies in the film "Mercy" should not be construed as a testimonial of guaranteed performance, nor as an indication of the Company's future results of operations, revenue, or stock price.
• Forward-looking statements are subject to various risks and uncertainties, and actual results may differ materially from those projected.

Future Outlook

The company expects to continue attracting new business as it converts its existing sales opportunities, including a prospective sales pipeline of over 35 Fortune 500 companies, into deployed clients generating a recurring revenue stream. Each Fortune 500 client has the potential of making numerous reorders over time. RAD will also showcase its full portfolio of autonomous security solutions at ISC West 2026.

Management Comments

• "Mercy explores a future where security decisions are no longer hypothetical and neither is the technology behind them." Steve Reinharz, CEO/CTO and founder of AITX and RAD.
• "What makes this meaningful is that the film did not rely on imagined systems. RAD solutions are already operating autonomously in live environments today, making them a natural fit for a story centered on AI driven judgment, accountability, and real consequences." Steve Reinharz.
• "While we were in several scenes the final cut severely limited exposure of our devices, which is the director's artistic choice. What this reinforces for us is that film, television, and streaming productions are actively seeking out real autonomous security technology, not props or concepts." Steve Reinharz.
• "RAD devices represent how security actually operates in the real world and where it is heading. They perform authentically on camera because they are authentic systems, and they bring a visual presence that naturally fits modern and future facing environments where security must be visible, credible, and trusted." Steve Reinharz.

Industry Context

StockSavvy.ai notes that this product placement aligns with a growing trend of integrating real-world advanced technology into entertainment to enhance realism and provide subtle marketing. For the security industry, it highlights the increasing mainstream acceptance and visibility of AI-driven autonomous solutions, moving them from niche applications to broader public consciousness. This also positions AITX as a leader in providing deployable, rather first-generation conceptual, AI security systems.

Comparison to Industry Standards

• RAD's claim of 35%-80% cost savings compared to manned security positions it favorably against traditional security models, which are often labor-intensive and costly, suggesting a disruptive economic advantage.
• The mention of Knightscope, a competitor in security robotics, and the expertise of RAD's team (including a co-founder of Knightscope) indicates RAD operates within a competitive but growing market for autonomous security solutions, leveraging experienced personnel.
• The company's successful completion of a SOC 2 Type 2 audit demonstrates a commitment to data security and internal controls, a critical benchmark for enterprise and government clients in the security sector, aligning with high industry standards for data protection.
• The prospective sales pipeline of over 35 Fortune 500 companies indicates a strong competitive position in attracting large-scale clients, comparable to leading security service providers in terms of market penetration potential.

Corporate Governance

Stakeholder Impact

• **Shareholders**: Potential for increased brand recognition and market awareness, which could positively influence future sales and stock performance, though direct financial impact is not immediate or quantified.
• **Customers**: Validation of RAD's technology through its use in a major film, reinforcing the realism, effectiveness, and advanced capabilities of their autonomous security solutions.
• **Employees**: Positive reinforcement of the company's innovative work and market relevance, potentially boosting morale and attracting talent.
• **Industry**: Contributes to the broader acceptance and understanding of AI-driven autonomous security solutions as practical and deployable technologies.

Next Steps

• Showcase the full portfolio of autonomous security solutions at ISC West 2026.
• Convert existing sales opportunities, including over 35 Fortune 500 companies, into deployed clients.
• Attract new business and generate recurring revenue streams from deployed clients.

Key Dates

Recommendation

While the product placement offers valuable brand exposure and validates the technology, the filing does not contain specific financial metrics or a quantifiable impact on revenue or profitability. The limited screen time of the devices in the film also tempers the immediate marketing benefit. Therefore, a "hold" recommendation is appropriate as this event is a positive, but not a fundamentally transformative one that would warrant a stronger buy or sell action without further financial data.

Keywords

Artificial Intelligence, AI, Security Solutions, Robotic Assistance Devices, RAD, AITX, Autonomous Security, Film Placement, Product Placement, Sci-Fi Thriller, Mercy Movie, Robotics, SOC 2 Type 2, Security Industry, ISC West