Parks Associates Study Finds Cloud AI Video Tools Key to Next-Gen Monitoring
Research from Parks Associates finds that cloud-based artificial intelligence (AI) video solutions are redefining how professional monitoring centers and security providers manage the explosion of video data across commercial, multifamily and industrial markets.
The firm’s new report, "How to Scale Live Video Monitoring? Empowering Next-Gen Operators with Cloud Video AI," developed in partnership with 3dEYE, highlights how cloud-native video platforms are enabling scalable, hardware-agnostic deployments that enhance operational efficiency, reduce false alarms and open new opportunities for managed services.
Monitoring industry at a tipping point
According to the research, traditional alarm verification models that rely on human operators are increasingly strained by the sheer volume of video data now generated daily.
Parks Associates notes that 62% of home security system owners experience at least one false alarm each year, contributing to alarm fatigue among law enforcement agencies. Many U.S. cities, including Los Angeles, Houston, and Seattle, now require video or audio verification before dispatching officers, policies driven by the fact that up to 97% of alarms in some jurisdictions are false.
From alarms to analytics
AI-powered video analytics are reducing these inefficiencies by helping operators identify and verify high-confidence events in real time. Parks Associates reports that 32% of security dealers say AI has reduced false alarms in their business, and 42% now offer video verification as part of their monitoring services.
Technology has evolved from simple motion detection to “agentic AI” systems that can assess context, summarize incidents, and even initiate automated responses under defined protocols.
Expanding roles for monitoring centers and integrators
The shift toward cloud video is transforming the roles of monitoring centers, traditional central stations, and systems integrators. Cloud-based platforms allow centers to scale analytics capabilities without major hardware investment, while integrators can move beyond one-time installations to deliver recurring revenue services such as incident management, reporting, and business intelligence.
Cloud deployment also helps mitigate operator fatigue by consolidating multiple video management systems into unified dashboards. The report cites data showing that operators can miss up to 60% of target events when viewing nine simultaneous screens — a challenge cloud AI helps address through event-driven cueing and automated workflows.
Vertical applications beyond security
Parks Associates identifies growing demand for cloud AI video analytics across non-security applications such as construction, logistics, and retail. Examples include detecting personal protective equipment (PPE) compliance, optimizing loading-dock operations, analyzing customer traffic patterns, and automating safety and compliance reporting. These capabilities are extending video systems’ value into broader operational intelligence.
Spotlight on the multifamily market
Multifamily properties represent one of the most active sectors for AI-driven monitoring. Parks Associates estimates an $8.5 billion market opportunity as about one-third of apartment renters are willing to pay an extra $60 per month for a complete smart-home and security package. Nearly 70% of apartment renters and two-thirds of condo owners rate property-wide cameras as important when choosing a residence.
Among multifamily operators, 68% now offer video surveillance as an amenity in more than half of their portfolios, with high satisfaction levels. Cloud AI systems are especially valuable in these environments for unifying multiple vendors and data sources — such as access control and environmental sensors — into a single management interface.
Toward scalable, intelligent monitoring
The report concludes that cloud-based analytics and agentic AI technologies are ushering in a new era of scalable, software-defined monitoring. These advancements enable retrofit of legacy systems and open the door to applications beyond security, including predictive maintenance, occupancy analytics and compliance management.
As the study notes, “Monitoring centers can scale AI without new hardware, while traditional stations evolve from panel-based alarms to workflows that combine alarm data with AI-enhanced video — helping manage labor constraints and expanding the reach of professional monitoring.”