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SEATTLE & RESTON, Va. - Protect AI, known for its enterprise AI security solutions, has announced a collaboration with defense contractor Leidos (NYSE: LDOS) to enhance the security of artificial intelligence (AI) systems employed by U.S. government agencies. This partnership aims to address vulnerabilities in AI applications, including those presented by autonomous "agentic" AI models, which can operate without human oversight and could be susceptible to external manipulation.
The joint effort will focus on providing comprehensive lifecycle security for AI systems across various agencies, including those involved in national security, defense, intelligence, healthcare, and civil operations. These measures are intended to meet government standards and support secure AI innovation on a larger scale. With a steady dividend growth rate of 5.26% and a track record of maintaining dividend payments for 14 consecutive years, Leidos has demonstrated financial stability that supports its long-term government partnerships. For detailed analysis and additional insights, investors can access comprehensive research through InvestingPro, which offers exclusive financial metrics and expert analysis for over 1,400 US stocks.
Steve Hull, Digital Modernization Sector president at Leidos, emphasized the importance of trust and compliance in government AI systems, especially as the federal government increasingly utilizes AI for national security and critical infrastructure. The collaboration with Protect AI is seen as a strategic move to safeguard the future of these modern software systems.
Leidos Chief AI Officer Ron Keesing highlighted that securing the AI supply chain is crucial as new agentic AI models introduce fresh risks. The integration of Protect AI’s platform with Leidos’ digital transformation initiatives is expected to help agencies manage AI risks effectively, from model development to deployment and monitoring. This includes defenses against prompt injection, adversarial manipulation, model drift, and more.
Ian Swanson, CEO of Protect AI, pointed out that government AI systems are prime targets for adversaries. The partnership is set to bring a full-stack AI security solution to government settings, ensuring security, auditability, and compliance with federal standards such as NIST, OWASP, and MITRE.
Protect AI’s platform features tools like Guardian, a zero-trust AI/ML model scanner; Recon, an automated red-teaming solution for generative AI; and Layer, an LLM runtime security platform. These tools are designed to detect and mitigate vulnerabilities in machine learning models and generative AI workflows.
The collaboration between Protect AI and Leidos represents a proactive step in securing critical AI infrastructure against the evolving landscape of digital threats. With analysts projecting continued profitability and four analysts recently revising earnings estimates upward, Leidos appears well-positioned to execute this strategic initiative. According to InvestingPro analysis, the company is currently trading below its Fair Value, suggesting potential upside for investors interested in the growing AI security sector. This announcement is based on a press release statement.
In other recent news, Leidos Holdings announced a significant $390 million contract with the National Security Agency (NSA) to provide signals intelligence (SIGINT) capabilities and engineering services. This contract includes a base year with four additional option years, highlighting Leidos’ role in delivering tailored SIGINT solutions. The company also revealed a partnership with Moveworks to enhance government efficiency using agentic AI, aiming to streamline administrative tasks across government agencies in the U.S., U.K., and Australia.
Additionally, analysts at UBS maintained a Neutral rating on Leidos with a $149 price target, focusing on the company’s Veterans Benefits Administration (VBA) exams revenue. Meanwhile, Cantor Fitzgerald analysts upheld an Overweight rating, setting a $185 price target, citing growth opportunities in the Defense and Intelligence sectors despite potential risks in other areas. Leidos also secured a two-year extension in 2024, expected to boost revenue and earnings, although there are concerns about potential margin pressures post-extension.
In the broader market context, Leidos’ stock experienced gains alongside other defense firms, driven by investor optimism in the sector. These developments underscore the company’s active role in securing government contracts and partnerships to drive future growth.
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