Cybersecurity tests that allowed Anthropic’s AI models to breach external firms, along with comparable issues at OpenAI, are a sharp reminder that AI risk is not just technical. It is legal, compliance and reputational. As regulators respond with tighter oversight and higher expectations, spending on legal and compliance services could shift in meaningful ways. For investors, that can mean new potential opportunity or fresh risk depending on how companies sit within this regulatory trend. This article looks at 3 stocks from a Regulatory Beneficiaries in Legal & Compliance Services screener that are exposed to the latest AI security concerns.

UL Solutions (ULS)

Overview: UL Solutions provides safety testing, inspection, certification and related software and advisory services that help industrial and consumer companies, as well as regulators, ensure products, infrastructure and emerging technologies such as AI meet regulatory and safety expectations.

Operations: UL Solutions generates about US$1.4b from Industrial services, US$1.3b from Consumer services and US$397m from Risk & Compliance Software.

Market Cap: US$18.6b

Investors considering who could be positioned to benefit from tighter AI oversight may want UL Solutions on their radar. The company operates in product safety and compliance, from testing hydrogen infrastructure and complex vehicle electronics to rolling out AI safety certifications and carbon reporting tools that help clients respond to new rules. Earnings quality is described as high, returns on equity are characterized as strong and governance is viewed as solid. At the same time, the stock trades on a premium P/E multiple, and recent insider selling and reliance on external borrowing introduce additional risk. A key consideration for investors is whether UL Solutions’ role in testing and compliance for AI and other regulated technologies justifies that premium and how sustainable that positioning may be as scrutiny increases.

UL Solutions appears positioned as an AI compliance linchpin with premium expectations already reflected. To see how that premium compares with the company’s strengths and flagged risks, go straight to the 2 key rewards and 1 important warning sign

Knights Group Holdings (AIM:KGH)

Overview: Knights Group Holdings is a UK legal and professional services company that provides corporate, real estate, dispute resolution, private wealth and specialist personal injury advice to businesses and individuals across sectors such as finance, healthcare, technology and media.

Operations: Knights Group Holdings generates about £208m in revenue from legal and professional services in the United Kingdom.

Market Cap: £151.4m

Knights Group Holdings sits at the intersection of rising AI regulation and traditional legal work, which is why it could interest investors watching the Anthropic and OpenAI security issues. Revenue is concentrated in UK legal services, with a focus on premium, partner led work and an ongoing role as a consolidator in regional markets. Earnings have been volatile, including a large £17.4m one off loss and modest net margins, and the business carries meaningful debt, so the risk profile is not low. At the same time, revenue guidance of about £207m, a 17% increase in the total dividend to 5.63 pence per share and management’s emphasis on careful use of AI tools create a mix of income potential and exposure to growing compliance demand.

Knights Group Holdings is trying to turn steadier dividends and careful AI adoption into an edge, while debt and that £17.4m one off loss still hang over the story. To see how those trade offs really stack up for investors, go straight to the 2 key rewards and 4 important warning signs

IPH (ASX:IPH)

Overview: IPH provides intellectual property services such as filing, enforcing and managing patents, trade marks and designs for clients ranging from Fortune Global 500 companies to universities and smaller businesses across Australia, New Zealand, Canada and Asia.

Operations: IPH generates about A$291.1m from Intellectual Property Services in Australia and New Zealand, A$319.6m from Canada, A$126.3m from Asia and reports A$8.5m in intersegment eliminations and unallocated items.

Market Cap: A$1.1b

IPH sits in the sweet spot of rising AI and cybersecurity regulation because it pairs long standing IP expertise with clients that need help protecting data rich technologies. Recent cyber incidents at Spruson & Ferguson and Griffith Hack highlighted operational risk, yet management reports minimal client loss and a stronger cyber response playbook. This matters as scrutiny of AI systems increases after the Anthropic and OpenAI breaches. Earnings quality is described as high and the stock is viewed as good value versus peers, although high debt and a dividend that is not fully covered by earnings add pressure. With a new CEO arriving in July 2026 and an earnings report due in August, investors watching regulation driven winners may want to keep following IPH’s next moves.

IPH’s cyber setbacks and high debt sit alongside high earnings quality and a valuation some investors already view as appealing. To see how that balance really looks now, go to the 3 key rewards and 2 important warning signs

The three stocks in this article are only a sample of what this theme captures, since the full screener surfaces 21 more companies with equally compelling legal, compliance and risk focused stories in the Regulatory Beneficiaries in Legal & Compliance Services screener. Use Simply Wall St to identify and analyze the specific regulatory catalysts and governance narratives that matter to you so you can focus on the highest conviction opportunities in this space.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.