AITX’s RAD Announces First Hardware Price Increase in Nearly Three Years—Major Strategic Shift, Product Enhancement, and Margin Impact

Key Highlights

• Artificial Intelligence Technology Solutions, Inc. (AITX) and its main subsidiary, Robotic Assistance Devices (RAD), will raise hardware prices by approximately 14% effective May 1, 2026.
• The price increase follows nearly three years of AITX absorbing rising component, logistics, and compliance costs to support customer adoption and partner loyalty.
• Orders placed before April 30, 2026 will be honored at current prices, offering a limited window for clients and partners to lock in pre-increase rates.
• All existing contract pricing is grandfathered until further notice; only new orders will reflect the higher rates.
• The company expects the price increase to positively affect gross profit margins starting in Q3 of fiscal year 2027 (ending November 30, 2026).
• RAD introduces a significant product enhancement—SARA™ (Speaking Autonomous Responsive Agent) will now be included as a standard capability across all hardware devices, transforming each unit into an active participant in security operations.

Detailed Analysis for Investors

Price Increase & Strategic Rationale

After nearly three years of holding prices steady, RAD will implement a roughly 14% price hike on its entire hardware lineup. The company cites sustained increases in costs—components, logistics, and compliance—as the main drivers. Notably, RAD had previously chosen to absorb these pressures to maintain customer adoption and support long-term partner success, which may have constrained margins during this period.

The window for customers and partners to secure current pricing closes on April 30, 2026. All orders confirmed by that date will be honored at existing rates, while new orders from May 1 onward will reflect the higher prices. Existing contract pricing is grandfathered, providing stability for ongoing clients but signaling a clear shift for new business.

Product Enhancement—SARA™ Integration

RAD is making a structural change to its hardware offerings: SARA™, previously an add-on, will now be standard across all devices. SARA™ delivers AI-driven monitoring, real-time decision making, autonomous engagement, and escalation—without constant human intervention. This upgrade materially increases the baseline value of RAD’s hardware, enhancing operational impact and performance for clients. Every RAD unit will now serve not just as a detection endpoint, but as an active, autonomous participant in security operations.

Operational and Financial Impact

• The price increase is expected to start improving gross profit margins in Q3 of fiscal year 2027 (ending November 30, 2026). Investors should monitor the company’s financial statements for evidence of margin expansion as new orders roll in at higher prices.
• The integration of SARA™ may also drive enhanced adoption and customer satisfaction, potentially accelerating revenue growth or recurring revenues due to increased solution effectiveness.
• The company maintains a robust sales pipeline, including over 35 Fortune 500 companies, and anticipates continued growth as these opportunities convert to deployed clients generating recurring revenue streams.

Industry Position & Compliance

AITX is a leader in AI-driven security and productivity solutions, offering cost reductions of 35%-80% compared to traditional manned security. Its solutions integrate with industry platforms like Immix®, and its operations are validated by a completed SOC 2 Type 2 audit, which is important for enterprise and government clients requiring rigorous data protection and compliance.

Shareholder Considerations & Potential Share Price Sensitivity

• The price increase after years of cost absorption may signal improved future profitability and financial discipline, which could positively affect the share price.
• The strategic product enhancement (SARA™ standardization) may increase product attractiveness and competitive differentiation, potentially impacting sales growth and investor sentiment.
• The limited window for current pricing could prompt a surge in orders before April 30, 2026, boosting near-term revenues.
• The announcement includes a cautionary note regarding forward-looking statements and company expectations on revenues, cash flow positivity, ARR, and RMR; investors should interpret projections with care.

About AITX

Artificial Intelligence Technology Solutions, Inc. (AITX) is an innovator in AI-based solutions for security, automation, and operational workflows. Through its subsidiaries (RAD-I, RAD-M, RAD-G, RAD-R), AITX delivers stationary and mobile autonomous systems, analytics, and software designed to transform security and replace or augment human personnel in suitable environments.

The company operates across diverse sectors including enterprise, government, transportation, critical infrastructure, education, and healthcare. Its leadership, headed by CEO/CTO Steve Reinharz, brings decades of security industry experience and deep expertise in law enforcement and robotics innovation.

For more information, visit www.aitx.ai, www.radsecurity.com, and other affiliated sites.

Disclaimer

This article is for informational purposes only and does not constitute investment advice, a solicitation, or an offer to buy or sell securities. Forward-looking statements are subject to risks, uncertainties, and subjective judgment. There are no guarantees of future performance, revenues, operational results, or stock price movements. Investors should review the company’s official filings and consult with financial advisors before making investment decisions.

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