AI Video Management Systems: Legal & Compliance Guide

by Zlatan Omerspahić, Head of Legal and Compliance

In an era where security and data are paramount, Artificial Intelligence Video Management Systems (AI VMS) are gaining traction in various sectors. These systems offer enhanced functionalities such as facial recognition, behavior analysis, and anomaly detection, positioning themselves as valuable assets for businesses. However, the deployment of AI VMS is not without its challenges. For operators and businesses leveraging this technology, understanding and navigating through the intricate web of legal and compliance issues is crucial.

1. Understanding Data Protection Laws

Data protection laws form the backbone of legal considerations when implementing AI VMS. With regulations such as the General Data Protection Regulation (GDPR) in Europe and the California Consumer Privacy Act (CCPA) in the US, businesses must be vigilant.

Actionable Insights

Conduct Regular Audits: Ensure regular audits of data handling, processing, and storage practices to maintain compliance.

Stay Informed: Keep abreast of the evolving landscape of data protection laws, especially if operating across different jurisdictions.

2. Ensuring Transparency and Consent

The nature of AI VMS necessitates clear communication with individuals who are being monitored. Transparency builds trust, and in many cases, obtaining consent is a legal requirement.

Actionable Insights

Display Clear Notices: Ensure that clear and visible notices are displayed at surveillance locations.

Update Privacy Policies: Regularly update privacy policies to clearly articulate the use of AI VMS and the types of data collected.

3. Managing Cross-Border Data Transfers

For businesses operating internationally, managing data transfers across borders adds another layer of complexity. Different regions have varying regulations, and compliance with these is non-negotiable.

Actionable Insights

Review Data Transfer Agreements: Regularly review and update international data transfer agreements to align with the current laws.

Seek Legal Counsel: Consult with legal experts familiar with the data protection laws of the countries you operate in.

4. Mitigating Liability Risks

Understanding and mitigating the potential liability risks associated with inaccuracies or malfunctions of the AI VMS is essential.

Actionable Insights

Assess Risks: Conduct a comprehensive risk assessment to identify potential liability issues.

Secure Adequate Insurance: Ensure that your business has the appropriate insurance coverage to mitigate financial risks.

5. Evaluating Vendor Practices

The responsibility of navigating legal waters doesn’t solely rest on the users. It is equally vital to assess the practices and reputation of AI VMS vendors, especially regarding ethical AI development and potential biases.

Actionable Insights

Vet Vendors Thoroughly: Before finalizing a vendor, conduct a thorough review of their development practices and commitment to ethical AI.

Maintain Open Communication: Establish regular communication channels with vendors to address any concerns and stay informed about updates and improvements.


As businesses continue to integrate AI Video Management Systems, staying vigilant about legal and compliance issues is paramount. By actively addressing these considerations and implementing the actionable insights provided, businesses can harness the benefits of AI VMS while maintaining legal integrity and fostering trust.