Organizations using cloud-based physical security systems are adopting artificial intelligence at more than twice the rate of organizations relying on on-premise systems, according to new research released by Verkada.

Verkada’s 2026 State of Cloud Physical Security report found that organizations with cloud-based physical security are using AI at 2.6 times the rate of those operating on-premise systems. The report is based on a survey of more than 2,700 IT and physical security leaders across 10 global markets.

The findings point to a divide in AI adoption as organizations continue to modernize their physical security infrastructure.

Overall, 80% of surveyed leaders said their organizations are engaged with AI in physical security. Adoption remains at different stages, however, with 39% reporting that their organizations are still piloting AI features while 41% said they are actively using them.

Verkada said the disparity between cloud-based and on-premise environments could widen as AI adoption increases and organizations move toward more modern infrastructure.

The survey indicates that a transition toward cloud-managed physical security is already underway. Among organizations that are not yet fully cloud-managed, 94% are either planning a transition or are already in the process of making one.

The research also found that organizations are looking beyond traditional security applications when considering the value of video surveillance investments.

Most organizations surveyed said they currently use or plan to use video security to support broader safety and operational applications. Those use cases include workplace health and safety compliance, operational efficiency and space utilization.

The company’s 2026 State of Cloud Physical Security report, conducted by Dynata on behalf of Verkada between March 30 and April 17, surveyed IT and physical security leaders across 10 markets. The report examines findings across all 10 markets, including feature rankings, governance and ROI by adoption stage, emerging capabilities expected to gain importance over the next two years and regional regulatory considerations. Separate editions are also available for North America and Australia and New Zealand, with Europe and Asia editions expected to follow.

The report is available for download here.