Automated teller machines (ATMs) transformed banking by allowing customers to access their funds anytime, drastically reducing wait times and boosting bank efficiencies. A similar technological advancement is now poised to disrupt the cannabis industry—fully automated cannabis kiosks that utilize robotic arms and artificial intelligence (AI). These kiosks enable customers to purchase cannabis and cannabidiol (CBD) products without interacting with staff.
With 33 U.S. states legalizing medical cannabis and 11 states permitting adult-use recreational marijuana, including Illinois, which is set to launch its recreational pot market, the potential for these kiosks is significant. The recent legalization of hemp-derived CBD at the federal level further supports this growth. However, the question remains: can investors capitalize on the rise of these “pot-bots”?
Why the Technology Is Appealing
While one might equate cannabis kiosks with traditional vending machines, their functionalities extend far beyond simple product sales. For instance, some existing kiosks employ military-grade biometrics, scanning customers’ finger veins to verify their age for cannabis purchases. Customers navigate a touchscreen to select products and can pay with cash, coins, or credit cards. If an issue arises, such as an item being out of stock, the kiosk notifies staff.
A more recent model enhances the experience through facial recognition for customer authentication. This kiosk features a user-friendly touchscreen that allows multiple product selections per transaction. Customers receive detailed product information to aid their purchasing decisions, while AI-driven recommendations are provided based on their buying patterns. The kiosk’s robotic arm retrieves and dispenses selected items, all viewable through shatterproof glass, and accepts a variety of payment methods, including digital wallets.
Beyond customer convenience, cannabis retailers stand to benefit from these kiosks. Much like banks did with ATMs, cannabis retailers can improve their operational efficiencies, significantly increasing revenue per square foot.
Key Players in the Market
Several companies are leading in the cannabis kiosk market, each with unique technologies. American Green’s AGM Pro kiosk relies on biometric authentication and is versatile enough to handle other age-restricted products such as alcohol and tobacco.
Greenbox Robotics offers its greenbox kiosk for cannabis and marinabox for CBD products. This system, which uses AI, debuted in Los Angeles and is tailored for cannabis sales. GreenSTOP, on the other hand, takes a different route with its Smart Dispensary, allowing customers to pre-order products via smartphone apps for later pickup.
Grasshopper kiosks authenticate customers by scanning ID cards, while Frank Mayer and Associates provide kiosks designed solely for self-ordering, requiring customers to take a printed ticket to the counter for checkout.
Limited Investing Opportunities
Despite the promising outlook for cannabis retail kiosks, investor options are largely limited. Of the five companies mentioned, only one—American Green—is publicly traded. However, this penny stock has exhibited struggles, posting less than $300,000 in revenue in its last quarter and over $1 million in losses.
Another potential avenue for investors could involve companies that supply critical technology to cannabis kiosks, such as IBM. The tech giant acquired Datacap in 2010, providing payment processing technology for Greenbox Robotics. Nonetheless, significant revenue from cannabis technology sales remains minor compared to IBM’s overall operations.
Investors might also consider companies like Curaleaf, which is acquiring the Select brand, previously showcased alongside Greenbox Robotics’ kiosk. However, it remains too early for this technology to substantially impact Curaleaf’s performance.
In conclusion, while cannabis kiosks represent a potential disruption in the industry—especially as Mississippi continues to navigate its own cannabis policies and regulations—the current investing landscape offers few immediate options. Investors interested in capitalizing on the burgeoning cannabis sector may need to explore alternative opportunities as the market evolves.