The State of AI in Retail Surveillance

Considering all the attention and coverage given to AI in recent years, it would be fair to assume that by now, everyone is an expert. However, that’s still not the case in most industries, and retail is no exception, especially when it comes to AI surveillance.

The past few years have seen companies throughout the security and surveillance industry expand their use of AI, with some rapidly adopting the technology and others dipping their toes in the water. AI has certainly advanced from an emerging technology into a proven reality, with the ability to improve security camera imaging performance, enhance the accuracy of people and object detection, reduce false alarms, and conserve recording and network bandwidth.

Retail is evolving faster than ever, and as someone who has spent years on the retail side, leading both operations and loss prevention, I’ve seen firsthand what retailers need in a video security system.

Retailers now demand much more from their video systems than simple surveillance. Today’s video solutions must address life safety, operational efficiency, customer experience, and, of course, security—and AI can tie all four together.

However, that’s often easier said than done.

Misconceptions About AI

AI has been a top retail buzzword for several years. Retailers know AI is something they need, but many have limited capital dollars for technology investments. Plus, there is still much confusion about what AI is and what it can and cannot do.

The influx of data can be overwhelming. Every new product is labeled “AI.” I even have a vacuum cleaner that claims to use AI, but it’s really LIDAR remote control technology. Customers often ask, “Can AI identify a gun?” Some technologies can, but then the next question might be, “Can AI identify a gun that someone’s concealing?” or “Can AI tell me if somebody’s planning to steal?” There’s nothing out there like that, at least not yet.

Breaking Down Silos

Many retailers are adopting AI in a piecemeal fashion, often focusing on one specific use case rather than taking a more holistic approach to integrate it across different business functions effectively. Within one retail organization, the loss prevention team may adopt AI for its own needs, and customer service may use AI for an entirely separate task.

Success lies in busting those silos and getting everybody to collaborate on overarching AI deployments covering life safety, operational efficiency, customer experience, and security. The operator that uses AI most effectively is one that is using it across all four areas.

Life Safety

Workplace safety is a top priority for retailers. Hanwha provides AI solutions to help identify life safety issues, such as forklift safety violations and blocked fire exits or electrical panels. Additionally, Hanwha’s AI capabilities can detect and alert/report slip-and-fall incidents as soon as they happen, allowing for immediate response and documentation. By proactively addressing workplace hazards, retailers can enhance employee safety and reduce liability risks.

Operational Efficiency & Compliance

AI video helps optimize retail operations. Heat mapping and dwell-time analytics provide insights into customer traffic patterns, allowing stores to adjust layouts and staffing to maximize efficiency. AI can also monitor safety compliance, ensuring that emergency exits remain unblocked, employees follow protocols, and store conditions meet operational standards.

Retailers often operate across multiple locations, making scalability and remote monitoring essential. Whether you have an on-prem appliance or cloud-based video, AI solutions allow centralized management of all stores, warehouses, and offices from a single platform. Managers can access real-time footage, review analytics, and respond to alerts instantly—no matter where they are. AI-driven search capabilities make reviewing footage faster and more efficient, saving valuable time.

Retailers depend on multiple systems, from POS and inventory management to workforce scheduling. The most effective AI video solutions integrate seamlessly with these existing platforms to deliver comprehensive insights. For instance, combining AI-driven video analytics with POS data can identify fraudulent transactions, voids, and sweethearting, while integrating with inventory systems enhances the tracking of high-value merchandise.

Whether it’s operational, internal, or external, shrink will always be a top concern for retailers. AI-driven video analytics now provide proactive loss prevention by identifying suspicious behavior in real-time, alerting staff before an incident escalates. With advanced object recognition and analytics, AI video can detect patterns, unauthorized access, and internal fraud, minimizing losses before they happen.

Customer Experience

Retail success hinges on the customer experience. AI-powered cameras can analyze checkout queues, automatically deploying more staff when lines become too long. A seamless customer experience is vital for retail success. AI-powered cameras optimize store performance by using customer counting data to determine conversion rates and key staffing areas. By analyzing foot traffic patterns, retailers can ensure the right number of staff are deployed in the most critical areas of the store, improving service efficiency and boosting sales opportunities.

What’s Next?

The AI-powered analytics in cameras can provide valuable insights into customer traffic patterns and shopping behaviors if they are used properly and effectively. However, retailers must always look ahead and think about new AI applications that can streamline store operations.

From maximizing your capital investments to proving measurable value, working with a trusted partner like Hanwha will demonstrate how AI video solutions reduce losses, optimize staffing, and improve inventory management—ensuring a retail system is future-proof to deliver a strong long-term return on investment.

By leveraging Hanwha’s advanced AI video technology, retailers can stay ahead of emerging threats, streamline operations, and enhance their customers’ experience, all while maintaining a secure environment.

Hanwha is collaborating with industry-leading third-party solutions, for example, through its Partnership Program, continuing to expand API integrations and ensuring that capital investments evolve into intelligent, data-driven assets.

Retail store employees already have enough to manage without having to react to every possible incident detected. To help reduce the pressure and stress levels of store employees, Hanwha Vision has combined AI with many of its IP surveillance technologies. Combining AI into video surveillance systems addresses this heightened need for more accurate AI-based detection of people, objects, and vehicles, leading to fewer false alarms and more effective and accurate forensic searches. Hanwha also offers IP-based audio systems that can link to a store’s video surveillance system to broadcast either real-time or pre-recorded messages to address suspicious or criminal activities preemptively. For example, the surveillance system can detect if a person is loitering in a restricted area and issue an audio warning to move.

Hanwha delivers technology that directly addresses the needs of today’s retailers. From distribution centers to storefronts, our solutions provide security, efficiency, and valuable business intelligence. Hanwha has dedicated teams designing and developing cutting-edge camera solutions and AI specifically for retail, making a global impact across all verticals, from distribution centers and home offices to big-box stores and specialty retailers.

Retail is changing, and AI-driven video systems are no longer just a security measure—they are a critical component of a retailer’s success. Learn more at hanwhavisionamerica.com.