Why AI Is Rewriting the Business Case for Physical Security

Rising complexity and staffing pressures are prompting security leaders to reconsider the role AI can play in improving operational efficiency, reducing false alerts, and delivering measurable business value.
Dec. 19, 2025
7 min read

Key Highlights

  • Why traditional, human-centric physical security models struggle to scale in data-heavy enterprise environments

  • How AI is being used to reduce alert fatigue, improve investigations, and shift security operations from reactive to proactive

  • What security leaders should consider when evaluating AI-driven approaches for operational efficiency, risk reduction, and measurable business impact

For decades, physical security has been treated as a necessary cost of doing business. Companies invested in guards, cameras and alarms as insurance against the worst-case scenario — an expense justified by what didn’t happen. The return on investment (ROI) was invisible, measured only in the absence of an incident.

That era is ending. AI is fundamentally reshaping the business case for physical security. Instead of simply responding to threats after the fact, security teams can now prevent them before they occur, while simultaneously unlocking measurable operational and financial value. This shift transforms security from a reactive cost center into a proactive strategic asset — one that directly contributes to resilience, efficiency and trust.

Limitations of the old paradigm

Traditional, human-centric security was built for a simpler world. Today’s enterprise environments are too large, too complex and too data-saturated for people alone to manage effectively. Security operations centers (SOCs) are expected to monitor hundreds of video streams and validate millions of access control signals each year. Yet most feeds go unwatched, most alerts are false and real threats are often missed until it’s too late. Fragmented systems compound the challenge. Video platforms, access controls, analytics tools and manual tracking rarely integrate smoothly. 

The modern enterprise is complex, with global campuses, hybrid workforces and intricate supply chains leading to an ever-expanding attack surface. The challenge is a matter of scale, speed and cost. For today’s organizations, the ability to scale security operations efficiently is non-negotiable. The previous model, which relied only on guards, gates and traditional cameras is buckling under this pressure. This legacy approach not only generates an overwhelming amount of unmanageable data but also fails at the most important task, which is to keep people and critical assets safe. Without the right intelligence layer, security operations become reactive and slow, bogged down in endless investigations rather than rapid responses.

How alert fatigue strains GSOC teams

Behind the blinking screens of every global security operations center (GSOC) are teams of dedicated professionals with a challenging mission. GSOC analysts are drowning in data, spending their days chasing ghosts born from unsophisticated motion-based alerts triggered by basic video analytics. This constant stream of "cry wolf" alerts leads directly to alert fatigue.

Alert fatigue leads to burnout, high turnover and a perpetual cycle of hiring and retraining that drains institutional knowledge and weakens the team's overall effectiveness. For security teams, this has three major consequences: Genuine risks are buried in a sea of false positives, it erodes the quality of service and it drives up the cost of operations.

Every false alarm consumes resources, and to cope with the volume, organizations add more analysts, more contractors and experience more turnover. The result is a reactive security posture, where teams are perpetually responding to incidents rather than proactively preventing them.

AI as an emerging strategic asset

AI changes this equation by delivering superhuman perception, contextual intelligence and autonomous response at enterprise scale. Rather than serving as a passive tool for human operators, AI functions as an intelligent partner that:

  • Processes data at scale – analyzing every camera feed, sensor and access signal in real time without fatigue.

  • Understands context – distinguishing routine behavior from true anomalies, reducing false positives by orders of magnitude.

  • Responds autonomously – triggering appropriate workflows instantly, instead of waiting for manual intervention.

  • Learns continuously – becoming smarter and more precise with every real-world event.

Together, these capabilities are intended to help security teams operate more efficiently and focus attention on higher-priority risks.

Not all AI is created equal

It’s important to recognize that not every AI solution in physical security delivers on this promise. The value of AI depends entirely on its ability to think more like a human — understanding scenarios beyond simple object recognition, interpreting context and intent to distinguish what truly matters.

The future of physical security depends on breaking the cycle of alert fatigue. The answer isn't more personnel or more cameras; the answer is intelligent, more efficient security. The future of physical security lies in leveraging the power of AI to augment human expertise, transforming physical security from a reactive cost center into a proactive, data-driven strategic enabler.

AI-enabled technology for physical security is a force multiplier for security teams. By using advanced computer vision and deep learning to analyze video feeds in real time, understanding the context of events as they unfold, and filtering out the noise, technology empowers security teams to focus exclusively on the incidents that require their attention. Forward-leaning organizations incorporate AI to free up GSOC analysts to do what they do best: manage critical incidents, coordinate responses and engage in proactive security.

Many vendors offer specialized models that can detect only a narrow subset of objects or situations. Others cut costs by subsampling video streams, which inevitably generates false alerts or, worse, misses critical signals altogether. These shortcuts defeat the very purpose of AI in security: to provide comprehensive, reliable and real-time intelligence at enterprise scale.

True effectiveness comes from AI that is:

  • Context-aware: capable of understanding behavior and intent, not just spotting shapes.

  • Privacy-conscious: trained specifically on physical security data while respecting organizational and individual privacy.

  • Cost-efficient at scale: architected to process every stream without degradation, not forced to compromise by sampling only pieces of the picture.

Only when these conditions are met does AI rise above being another point tool and become the backbone of a proactive, preventative security strategy.

How context-aware AI transforms investigations

The true power of context-aware AI is its ability to interpret a scenario, not just an object. For an investigation workflow, this means analysts don't waste hours manually reviewing video for a "person" that triggered a generic motion alert. Instead, the AI can filter and categorize events with granular specificity, drastically cutting down investigation time. For instance, instead of reviewing 10 hours of footage to find a possible unauthorized entry, an analyst can use AI-powered search to instantly locate the following event:

  • "A person attempting to open a restricted door after business hours without a valid badge."

  • "An employee climbing over a secure fence followed by another person retrieving an item from the perimeter."

  • "An unattended bag left in a high-traffic lobby for longer than five minutes."

By understanding the relationships between location, time, behavior (climbing, loitering, tailgating) and access credentials, the AI moves the investigation from a manual video review to a simple, instantaneous search query. Investigations that once took days can now be completed in seconds, ensuring threats are fully understood and addressed before they escalate.

Measuring business impact

For C-level leaders, the real question is not if AI will transform security, but how much value it will unlock. Forward-looking organizations are already quantifying impact through metrics that resonate in the boardroom:

  • Operational efficiency: investigation cycles cut from days to minutes.

  • Cost reduction: significant savings realized by eliminating false alarms and redundant manual monitoring.

  • Risk mitigation: earlier detection and prevention of incidents reduces exposure and liability.

  • Response time reduction: agentic workflows improve mission success by drastically reducing emergency response

  • Resilience and trust: safer environments for employees, customers and partners strengthen brand equity and stakeholder confidence.

When framed this way, physical security is no longer a sunk cost — it’s a measurable driver of enterprise performance.

The future of physical security is not about adding upgrading cameras or hiring more guards. It’s about deploying intelligent systems that work as an operating system for enterprise safety and resilience. These AI-powered platforms integrate video, sensors and access control into a unified fabric of perception, understanding and action. In this model, human operators don’t drown in noise; they oversee intelligent agents that surface only what matters. Security becomes continuous, proactive and strategically aligned with business outcomes.

The leadership imperative

The question facing today’s executives is simple: will you continue to treat security as a reactive cost, or will you embrace AI to transform it into a proactive asset?

Those who adopt early will gain not just safer workplaces, but leaner operations, stronger resilience and a clear return on investment. Those who don’t will remain stuck in an outdated model — pouring more money into fragmented systems that deliver less and less value.

AI has already rewritten the rules of cybersecurity. It is now rewriting the rules of physical security. For leaders ready to see security as a source of strength rather than expense, the time to act is now.

About the Author

Shikhar Shrestha

Shikhar Shrestha

CEO and co-founder of Ambient.ai

Shikhar Shrestha is the CEO and Co-Founder of Ambient.ai where he leads the company in scaling its technology with the mission to prevent security incidents before they happen. Shrestha holds a Master of Science in both electrical and mechanical engineering from Stanford University and prior to co-founding Ambient.ai, held engineering positions at both Apple and Google. Since co-founding Ambient.ai, Shrestha has led the company through the Y Combinator Winter 2017 cohort, raised $52.2 million in venture capital funding from a16z, secured enterprise customers across industries, and launched the company in January 2022.

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