ZenaTech (Nasdaq: ZENA) has accelerated its commercialisation of AI-powered drone technology, with its Drone-as-a-Service (DaaS) model accounting for 93% of first-quarter revenue.

The Vancouver-based company is shifting its business mix away from traditional hardware sales toward a recurring-revenue structure that bundles enterprise software and professional services with its unmanned aerial systems.

The dominance of the DaaS segment in Q1 results signals a successful transition to a higher-margin, subscription-based operating model.

By integrating AI capabilities directly into the service offering, ZenaTech aims to reduce customer acquisition costs while increasing lifetime value through ongoing software updates and data analytics services.

This structural shift is critical for investors evaluating the company's long-term growth trajectory and profitability potential.

The move aligns with broader trends in the unmanned aerial systems sector, where operators are increasingly seeking turnkey solutions rather than standalone hardware.