Axon CEO Touts AI Integration as Company Sees Robust Growth Across Segments

Axon Enterprise Inc. is strategically positioning itself at the intersection of artificial intelligence and public safety, with CEO Rick Smith highlighting the company’s “amazing position to take advantage of the AI era” during a recent interview on CNBC’s Closing Bell Overtime.

The company, whose stock jumped 14% following strong quarterly results, reported impressive growth across all business segments, with software and services emerging as the standout performer, growing nearly 40% year over year.

“We have over a million users out there that are using our body cameras, in-car cameras. We have eyes and ears out in the field, and we can listen and see what’s happening and then apply AI to it. The business is really on fire,” Smith told CNBC.

Axon, primarily known for manufacturing Tasers and body cameras, has diversified its portfolio to include sensors and counter-drone technology. This diversification strategy appears to be paying dividends, giving the company confidence to raise its guidance despite macroeconomic uncertainties plaguing many sectors.

“We’re solving really important problems for our customers. Things like defending our officers from lawsuits or stopping drones,” Smith explained. “When we started investing in Counter Drone years ago, it was before the war in Ukraine and before the incident in New Jersey. Being the market leader in Counter Drone is an awesome place to be.”

The CEO attributes the company’s resilience to both the critical nature of the problems they’re addressing and their diversified business model. “We have so many different parts of the business growing that we could absorb some losses if one of them had a bad quarter, because it typically gets made up somewhere else,” he noted.

On supply chain concerns, Smith expressed confidence in Axon’s positioning, emphasizing their domestic manufacturing capabilities. “Made in the USA, like Bruce Springsteen said,” Smith quipped. “We manufacture our stuff here. So we’re much less affected than folks that are bringing everything in. And we pretty much defined our supply chain a few years ago, largely because our government customers were signaling that was important to them.”

When asked about growth opportunities across federal, local, or commercial sectors, Smith was enthusiastic about prospects across all fronts. “That’s like asking me which is my favorite child,” he said. “Literally we have so many great opportunities for growth.”

Smith highlighted enterprise solutions for businesses dealing with retail crime, military applications for counter-drone technology, and AI innovations for law enforcement. One notable example is a real-time translator that enables body cameras to translate over 50 languages, addressing a critical communication gap for officers in the field.

Regarding AI technology development, Smith revealed that Axon partners with industry leaders rather than building the foundation models themselves. “AI is growing at like a 100x improvement per year against different benchmarks,” Smith stated, noting that OpenAI serves as their “premier partner” handling the “heavy lifting” of AI development.

The interview underscores Axon’s evolution from a Taser manufacturer to a comprehensive public safety technology company leveraging AI to enhance its product offerings across multiple growth vectors.

*Source: CNBC’s Closing Bell Overtime*