'FTC Probes Evolv Security Over AI Weapons Screening Claims' - BNN Bloomberg
Portfolio Pulse from Benzinga Newsdesk
The Federal Trade Commission (FTC) is investigating Evolv Technologies Holdings Inc. over claims that its AI-based weapons detection systems do not operate as described. The company, valued at $582 million, saw its shares slide 20% this week. The FTC is seeking information about how AI is involved in Evolv's detectors. Evolv's claims about its system's effectiveness have been challenged by IPVM, a technology watchdog, which stated that false alarm rates were as high as 60% at school systems that use the system.
October 13, 2023 | 9:04 pm
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Evolv Technologies is under FTC investigation over the functionality of its AI-based weapons detection systems. This news, coupled with the company's shares sliding 20% this week, could negatively impact the stock in the short term.
The FTC investigation into Evolv's AI-based weapons detection systems raises concerns about the company's product effectiveness and credibility. This, along with the 20% slide in shares, could lead to a decrease in investor confidence, potentially negatively impacting the stock price in the short term.
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