Categories: Stock Market / Technology
Topics: Alternative Investments / Artificial Intelligence

Three Companies for Investing in AI Home Security

If you walk around many neighborhoods in America, you’ll often see signs saying something to the effect of “This home is protected by (insert security company here).” 

Rightfully so, many homeowners do whatever they have to in order to protect their homes, and that often involves making sure there is a security system in place. 

Last week, we began exploring the connection between artificial intelligence and home security. Specifically, we looked at how AI is powering a lot of these home security technologies. 

With artificial intelligence investing becoming the hot sector and the home security industry growing at the pace that it is, it only makes sense that the two will grow alongside each other in the next few years. 

A lot of different companies realize that too, so they’re integrating AI into their products to both make them more effective and stay with the times. 

That’s why, as time goes on, you’re increasingly going to hear about the home security industry as another avenue in artificial intelligence investing. 

So here are some companies within the home security industry that are taking advantage of AI to capture their shares of the market. 

AI Security Companies to Keep an Eye On

ADT

ADT (NYSE: ADT) is a household name in the sector, having been around since 1874. It works in the commercial and small business spaces but is also widely known for the range of products and services that it offers to residential customers. 

These products include everything from door and window sensors to alarms and command panels. ADT is also well known for its 24/7 alarm monitoring, meaning that if something triggers an ADT system, then the person monitoring that system can contact emergency responders who will then go to the customer’s home. 

As far as artificial intelligence in home security, ADT saw the writing on the wall several years ago. 

In September 2020, the company acquired an AI startup called Percepta Labs. At the time, the acquisition was to invest in an AI-based technology that was to be used in commercial environments. This technology makes use of facial recognition and movement tracking to help curb shoplifting incidents. 

Even though this technology is designed for a commercial environment, it could be applied to a residential environment as well. Smarthome technology, like the kind ADT specializes in offering, is at the center of home security systems. With the kind of artificial intelligence that powers these systems constantly improving, a company like ADT could leverage it to appeal to a wider customer base. This can be seen as a sort of an indirect means of artificial intelligence investing, but the potential to have the technology at the scale ADT is capable of makes it one to watch. 

Vivint

Vivint Smart Home (NYSE: VVNT) is another home security system that offers products ranging from sensors to cameras (doorbell, indoor, etc) to locks and lighting. Most of its business is focused on the residential market and in that, it offers its artificial intelligence solution, which it calls Vivint Sky. 

This home automation system allows the homeowner to control their home from anywhere as long as they have an internet connection. That includes remote access to doors, the thermostat, and any cameras in or outside the home. Artificial intelligence comes into play here when the system learns the homeowner’s habits, and will do things like lock unlocked doors at times the homeowner usually leaves or adjust the thermostat at times it learns the homeowner usually does so. 

Alongside learning habits, the system is capable of making suggestions to the homeowner, which it will send through Vivint’s smartphone app. 

The intuitive nature of the Sky system makes it possible to integrate things like Vivint’s motion sensors, smart sensors, indoor and outdoor cameras, and smart locks to give homeowners complete peace of mind when they are away from home. 

Thanks to this kind of home security artificial intelligence, Vivint is able to be a sort of one-stop shop for homeowners who want to be as secure as possible. Because it offers a full range of security products powered by artificial intelligence, it’s able to simplify the process for its homeowners, making it a popular option for anyone looking for a smarthome solution. 

When it comes to home security and artificial intelligence investing, Vivint is another company to watch. 

Amazon

You probably didn’t expect to see Amazon (NASDAQ: AMZN) on this list, but it makes sense when you look at some of the moves the company has made in the last few years. 

If you look at recent headlines, you’ll see that the company has branched out as far as investing in artificial intelligence goes. A recent letter to investors by CEO Andy Jassy stated that the company was investing heavily in large language models, which is the technology that powers ChatGPT and other chatbots. 

Amazon Web Services recently started a 10-week program for generative AI startup companies to get access to AI models and tools. It has also struck partnerships with AI companies to provide scalable access to AI models, which will expand the market for machine learning. 

All of this shows just how ambitious Amazon’s plans are when it comes to the most prominent part of the AI discussion, but the company has also made moves in other parts of the sector. 

In August 2022, Amazon purchased the company iRobot, maker of the famous Roomba robotic vacuum cleaners. Some models of these cleaners have internal mapping technology that learns the floorplan of the user’s home. Some models recently revealed a new feature called Remote Check-In, giving the user a live view of the inside of the home. 

Essentially, the update turns the Roomba into a mobile security camera. 

This, along with the AI and machine learning algorithms that it uses to map out homes and avoid obstacles makes it another part of a complete smarthome security system. And the acquisition of iRobot for Amazon makes sense when you also consider one of the tech giant’s other acquisitions. 

In 2019, Amazon bought smart doorbell company Ring, probably the most well-known name in smart doorbells. The deal cost Amazon $1 billion and gave the company a foot in the door in the AI-powered home security segment. 

In purchasing Ring, Amazon brought a number of home security products under its umbrella. Indoor and outdoor cameras, its infamous doorbell cameras, lighting and alarm systems are all products that Ring offers to its customers. And like ADT and Vivint, all of these products work together to create a comprehensive, AI-powered security suite that gives customers complete protection of their homes. 

It’s not hard to imagine Amazon expanding its reach in a number of ways, given how much of a focus it’s been putting on Artificial Intelligence investing. 

Between its acquisitions of Ring and iRobot, and its partnering with AI startups, Amazon could be one of the frontrunners in companies to look at when investing in artificial intelligence. 

The Future AI Security Landscape

In the near future, investing in artificial intelligence is likely going to intersect with home security. Companies like the three above are going to thrive because of their reach and scale. 

These companies will also fit in nicely with an AI security firm that’s set to expand its own reach soon. 

This company set up its technology in a neighborhood in Mexico and, in a short amount of time, reduced crime by 45%. Now it wants to do the same here in the US. 

It’s the kind of growth opportunity that doesn’t come around often, so anyone wanting to invest in artificial intelligence should consider this company. 

Ryan Stancil
Editor, Daily Profit Cycle