Cybersecurity, compliance, and AI shape the next phase of surveillance technologies
As physical security systems become more interconnected and intelligence driven, integrators are seeing a clear shift in how end users evaluate and deploy surveillance and access control solutions.
Cybersecurity, regulatory compliance, and the expanding role of AI enabled analytics are now central to procurement discussions across major sectors. Insights from industry experts highlight the trends shaping demand and the considerations that security professionals need to prioritize.
Cybersecurity becomes a core requirement
Across the interviews, cybersecurity emerged as the most consistent and dominant priority. For many organizations, it has become a baseline requirement rather than an optional capability.
Charles Nguyen, Product Marketing Manager for VAA at Genetec, said cybersecurity and NDAA compliance is “foundational.” He explained that “major procurement decisions now include these as core criteria,” and end users want systems that are “secure by design, regularly tested, and validated by third-party certifications rather than self-assessments.”
Nguyen noted that these expectations have expanded across market segments. “For public sector agencies, critical infrastructure, and large enterprises, compliance is mission critical,” he said. Failure to meet cybersecurity or NDAA requirements can “lead to disqualification from contracts, reputational damage, or even regulatory fines.” He pointed to the need for system hardening through “encryption in transit and at rest, secure firmware updates, role-based access, and strong API security.”
He also highlighted data sovereignty as an emerging area of concern, explaining that cybersecurity extends to understanding “where data resides, where it’s transmitted, and how it’s protected throughout its lifecycle.”
Financial institutions share similar priorities. Matt Tengwall, SVP and Global General Manager for Fraud and Security Solutions at Verint Systems, said “security and compliance remain the foundation of every investment.” Banks, he noted, require encryption, device verification, and controlled access due to the sensitive nature of the information they handle.
According to Tengwall, NDAA compliance reinforces trust by ensuring that “all components meet federal and industry standards.” As cloud and AI adoption grows, transparency around data usage is becoming more important. “Institutions want innovation, but it has to come with accountability,” he said.
From a technology development standpoint, Intellicene CEO Greg Colaluca said cloud connected environments have raised the stakes for security validation. “End users now expect vendors to prove that their platforms follow strong security standards and stay ahead of potential threats,” he said. Certifications such as ISO 27001 demonstrate that companies maintain “clear policies for access control, incident response, and ongoing monitoring.”
Coupled with NDAA compliance, these measures give customers confidence that every component meets trusted requirements.
Adam Lowenstein, Americas Product Director at i-PRO, said cybersecurity has reached a point where “NDAA compliance is a requirement and not a request.” He emphasized that end users should ask detailed questions about cybersecurity when selecting systems. Lowenstein pointed to the importance of standards such as FIPS 140-3 L3, describing it as “the highest level of cybersecurity as defined by NIST.”
He also noted the need for secure supply chains, including manufacturing in TAA compliant countries and adherence to CMMC guidelines. Lowenstein added that responsible AI development is critical, highlighting recognition under ISO 420001 as an indicator of best practice.
AI driven surveillance expands across sectors
Demand for AI enabled video surveillance is increasing across diverse industries, though the drivers vary based on operational needs.
Nguyen said transportation, city surveillance, retail, banking, critical infrastructure, and healthcare are at the forefront of AI adoption. Transportation and municipal agencies use AI for real time situational awareness, crowd monitoring, and incident response.
In retail and banking, analytics support operational efficiency, loss prevention, and fraud detection. Retailers apply AI to understand traffic patterns and customer behavior, while financial institutions use it to monitor restricted zones and detect fraudulent activity.
Critical infrastructure operators rely on AI to automate threat detection and comply with stringent safety and oversight requirements. Healthcare facilities are turning to analytics to enhance patient safety, manage access, and track high value equipment.
Across these sectors, Nguyen said the goal is to “make systems smarter, safer, and more efficient without adding complexity for the people who rely on them every day.”
Tengwall observed that the financial sector continues to advance rapidly in its use of analytics. “Financial institutions continue to set the pace,” he said.
According to him, analytics help identify suspicious behavior near ATMs, detect repeated transactions that may indicate fraud, and monitor movement inside branches. The same data supports everyday operations by showing wait times, hourly foot traffic patterns, and staffing needs. By combining these insights with hybrid cloud management, Tengwall said banks are turning video into a tool that supports “both security and operations.”
Colaluca noted that commercial businesses, including retail, offices, and warehouses, account for a significant share of AI driven video surveillance deployments. Citing a market report, he said these segments represented “approximately 43.5 percent of the end-user market for AI in video surveillance in 2024.”
Retailers, in particular, are using these investments to address long standing challenges and improve customer experiences.
However, highly regulated environments such as defense, critical infrastructure, and industries with strict retention mandates require different approaches. Colaluca explained that air gapped or data sovereignty driven deployments may find cloud adoption challenging due to cost and compliance concerns.
He said environments with hundreds of cameras may face high uplink costs and bandwidth constraints if fully cloud based. For these users, hybrid or on premises systems often provide a more practical balance.
“Where these environments often find value in the cloud is in storing video data,” Colaluca said. Video storage can be expensive to maintain on premises, so hybrid models offer a strategic compromise for organizations requiring long term retention.
Across all sectors, he said the broader trend is a move toward integrated, intelligence driven security.
This shift is creating “safer, smarter, and more connected environments than ever, whether through cloud based, on prem, or hybrid systems that meet their unique needs.”
Lowenstein said demand for AI is rising across all verticals. He noted strong adoption of analytics such as license plate recognition and said end users increasingly want to know how their systems can become more automated. He added that security leaders also want data insights that extend beyond surveillance and support operational decision making.
Key considerations for integrators
For systems integrators and consultants, the insights from these interviews point to three clear priorities.
First, cybersecurity and compliance should be addressed at the earliest stages of system design. Organizations expect validated protections that follow established standards and involve clear accountability around data handling.
Second, AI adoption is accelerating, but deployment needs vary widely. Integrators must align analytics capabilities with operational requirements, from real time monitoring to long term trending and automation.
Third, cloud, hybrid, and on premises architectures each have unique strengths. Understanding bandwidth constraints, retention mandates, and regulatory requirements will be essential in recommending the right deployment model.
As surveillance technologies continue to evolve, end users are moving toward solutions that offer intelligence, resilience, and compliance in equal measure. For physical security professionals, the opportunity lies in helping organizations adopt tools that not only secure assets but also improve efficiency and support broader operational goals.
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Source: ASMAG
