Guardforce AI (NASDAQ:GFAI), a security solutions provider with more than 40 years of experience, is expanding its services into artificial intelligence (AI) and robotics solutions. GFAI operates in four main business units: secured logistics, robotics solutions, information security, and general security solutions. The company is quickly expanding its presence in the Asia Pacific region and aims to become a global service provider.
GFAI’s expansion into AI and robotics solutions, combined with its well-established secured logistics business, can potentially turn its operating losses into profits. In 2021, revenues from its robotics AI solutions, information security, and general security solutions only accounted for 2.4% of its total revenues. However, in 2022, this figure increased to 10.4%, indicating a promising trend.
GFAI has been making significant efforts to improve its integrated AI and robotics solutions since 2022, and the company has made recent acquisitions to strengthen its presence in the AI and robotics services market. In February 2023, GFAI acquired Kewei’s robot business assets in China, expanding its geographic footprint for AI and robotics capacity. Furthermore, the company signed an Artificial Intelligence of Things (AIoT) robot advertising contract with a local government office in Macau and acquired 100% equity interests in Beijing Wanjia, an integrated security provider in China.
As GFAI continues to expand in the robotics and AI market, Wall Street analysts have given it a strong buy rating. However, there are risks associated with GFAI’s businesses, including the need for additional financing, competition from robot manufacturers, and economic and political uncertainties in its operating regions.
Despite these risks, GFAI’s expansion offers opportunities for growth and new customers. Its security services provide a strong recurring revenue base, allowing GFAI to potentially sell AI and robotics services to existing customers. As the service robotics and AI markets are expected to grow significantly in the following years, GFAI is positioning itself to capture a significant portion of these markets.
