Can AI Stocks Finally Put An End to the Violence of Protests and Policing?
Just a few short years ago, Derek Chauvin, an officer of the Minneapolis Police Department, killed George Floyd, a 46-year-old black man suspected of a minor financial crime, by kneeling on Floyd’s neck for nearly nine minutes as he pleaded for his life.
Bystanders took video of the killing and posted it to social media — after which it sparked the largest wave of protests in American history.
Those protests have remained ongoing — in part because of a continuous series of highly-publicized incidents of police brutality against unarmed African Americans that have occurred since Floyd’s death.
In the aftermath of such incidents, researchers have noticed an increase in violent crime in the affected community — a result of reduced civilian trust in the police due to fear of brutality, and reduced police willingness to respond to calls due to fear of negative publicity.
A Colby College / Duke University study, for instance, found that local Google searches related to police violence were strongly correlated with crime rates in a city in the aftermath of a police-involved killing.
So how should governments enforce laws and protect the public when police-community relations break down?
Many are turning to the private sector…
“Defund The Police” Often Means “Privatize The Police”
In the aftermath of the killing of Floyd, the Minneapolis City Council voted to defund its police force, in line with the demands of protesters — but also began spending $4,500 per day on private security guards.
And Chicago gave more than $1.2 million to three private security firms to protect businesses in the city’s south and west sides after announcing reforms last summer.
But this shift toward private-sector law enforcement isn’t particular to the aftermath of the George Floyd protests.
According to Grand View Research, the global public safety and security industry is expected to be worth more than $812 billion by 2025 — and is expected to grow at a 14.8% compound annual growth rate (CAGR) until then.
As you can see above, growth is expected to be especially strong in the U.S. — in part due to anticipated changes in law enforcement in the aftermath of Floyd’s death.
Our research team has identified three high-tech law enforcement automation stocks that are especially well-positioned to take advantage of these trends — because their products help reduce the number of potentially violent interactions between police and civilians.
SoundThinking (NASDAQ: SSTI)
Founded in 1996 and based in Newark, California, SoundThinking is a manufacturer and servicer of ShotSpotter, an automated gunshot detection system.
Its shot-locating microphone arrays are currently used in over 100 cities in the U.S. and South Africa — and have seen rapid demand growth since the nation’s largest law enforcement organization, the New York Police Department, started using them in 2015.
As you can see in the table below, ShotSpotter greatly increases police response times and improves outcomes for victims.
The company has also taken proactive measures to safeguard its products against abuse by rogue or malicious officers. It had the NYU School of Law’s Policing Project test its microphones to ensure that they can’t be used to record conversations or store other data about civilians.
SoundThinking’s stock price has also remained consistent over the past few years. But based on new programs (including its new CrimeTracer system, which directly integrates with police software) and $8 million in new contracts, this small-cap security stock could see significant growth in the quarters ahead.
Liberty Defense Holdings (OTC: LDDFD)
Founded in 2012 and based in Vancouver, Liberty Defense is a manufacturer of weapons-detection technology for public spaces.
Toronto is currently testing its HEXWAVE™ system — which uses 3D radar imaging and artificial intelligence to recognize weapons — at Pearson Airport, the busiest airport in Canada.
The company is also working with the Columbus, Ohio-based Battelle Memorial Institute on new airport checkpoint screening technologies.
Liberty has recently expanded outside the U.S. and Canada — winning a $1 million grant from the Israel-U.S. Binational Industrial Research and Development (BIRD) Foundation to develop new multi-sensor, contactless threat detection products.
But the future of Liberty’s capabilities will be defined by their new AI-based additions to HEXWAVE. It’s currently in production and will support existing orders.
With these new AI capabilities, Liberty has seen a strong uptick in interest and potential orders, and their sagging stock price has moved up accordingly. Their system remains the only system that can scan for non-metallic threats at scale.
As Michael Lanzaro, President and CTO of Liberty Defense, said in a recent press release:
“Unlike systems that rely on metallic signatures, we've chosen to solve a problem that no others have, one that includes the creation of millimeter wave imagery and AI threat detection algorithms... we've developed the world's first threat detection platform that detects metallic and non-metallic threats, including 3D printed ghost guns and liquid, powder, or plastic explosives, while allowing for people to continuously flow through the system.”
Given the surge in interest for AI-based solutions, and Liberty’s success in selling these improvements, the growth trend in Liberty’s stock price is likely to continue.
What Will The Future Of Law Enforcement Look Like?
In the aftermath of the George Floyd protests, Americans are divided in their opinions of the incidents. But Black Lives Matter activists and All Lives Matter activists alike agree that the traditional model of law enforcement is not working — for police officers or the citizens they serve.
Automated security technologies — and particularly the technologies provided by the three firms we’ve profiled above — could solve many of its problems.
Here at Profit Cycle Pro we’ve been covering these developments, as well as how to approach them as an investor.
Our favorite discovery is still private (which is why we can’t include its name here) but has a funding deal that’s still open to select investors.
This groundbreaking AI firm has developed proven technology that can reduce crime by up to 45% at schools, college campuses, and bus stops.
How? By using advanced predictive AI developed by Intel. This powerful software combs through the data from the tens of thousands of security cameras that are already in place on streets and subways — and yet, due to low staffing levels, these cameras usually go unmonitored. This AI firm is changing all that.
Security is now a $68 billion market. As cities pour record-breaking amounts of funding into the fight against violent crime, this AI firm has the solution these cities need.
We’ve put together a video that explains why early-stage investors to this firm could make 550% gains or more on this new AI technology. Given the high stakes involved (and the speed of AI adoption) there’s not a moment to waste.