AI is rapidly making its way into our lives, from the recent introduction of DeepSeek courses in Chinese universities to intelligent robots patrolling public places in the US for enhanced safety.
While there are countless benefits of using AI across global industries around productivity, efficiency, and adaptability, concerns about the misuse of the evolving technology continue to grow in tandem. The dual-use potential of AI has led to increased scrutiny of the technology, especially in Europe, which experts believe is imposing stringent regulations even if it means slow development across the region.
Former Google CEO Eric Schmidt warned that AI misuse poses an “extreme risk” and could do catastrophic harm because the technology could be weaponized by “rogue states” to negatively impact innocent people.
“The real fears that I have are not the ones that most people talk about AI. I talk about extreme risk…Think about North Korea, or Iran, or even Russia, who have some evil goal… they could misuse it and do real harm,” Schmidt cautioned. “My experience with the tech leaders is that they do have an understanding of the impact they’re having, but they might make a different values judgement than the government would make.”
Weaponization could range from deepfakes to autonomous weapons, which Schmidt believes can be prevented with a balanced approach that fosters innovation through appropriate regulations.
We selected AI stocks by reviewing news articles, stock analysis, and press releases. We listed the stocks in ascending order of their hedge fund sentiment taken from Insider Monkey’s database of 900 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
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A robotic arm holding a semiconductor chip, emphasizing the precision and quality of the company’s production equipment.
9. Knightscope Inc. (NASDAQ:KSCP)
Number of Hedge Fund Holders: N/A
Knightscope Inc. (NASDAQ:KSCP) develops AI technologies for advanced detection systems like the Blue Light Emergency Communication Devices and Automated Gunshot Detection Services alongside autonomous security robots. These robots use cutting-edge laser systems and sensors to enhance public safety by patrolling areas like corporate campuses and shopping malls. These intelligent robots can track suspicious activities and alert authorities to report security incidents.
On February 20th, Knightscope Inc. (NASDAQ:KSCP) announced offering its emergency communication devices integrated with the Knightscope Emergency Management System to the City of Kilingly in Connecticut for seamless communication in emergencies to improve response times with minimal service disruption. The City College of San Francisco is increasing its deployment of K1 Blue Light Tower emergency phones, while Southern California Regional Rail Authority is expanding the use of Knightscope’s emergency call boxes for public safety in high-traffic environments. The company also announced the completion of its fleet-wide upgrade, replacing operational K5 v3 Autonomous Security Robots with the enhanced K5 v5 model for elevating safety in sectors like retail, commercial real estate, hospitality, and corporate campuses.
8. Xiao-I Corp. (NASDAQ:AIXI)
Number of Hedge Fund Followers: N/A
Xiao-I Corp. (NASDAQ:AIXI) is a cognitive intelligence company offering a multitude of AI-powered business solutions focused on fostering industrial digitization. The company’s proprietary AI technologies are used in smart cities, data asset management, construction support platforms, and customer service devices.
On February 21st, Xiao-I Corporation (NASDAQ:AIXI) launched the tAIkbox 1 device in the US powered by AI and the company’s Hua Zang LLM. The product is expected to transform customer services across high-impact industries like hospitality, healthcare, travel, and retail through seamless and intuitive interactions. It can integrate with existing phone and computer systems with data cables and has the potential to recognize natural speech better, anticipate requirements swiftly, and respond with finesse.