Catching the AI Wave

The AI wave is sweeping across all industries, including physical security. It is here whether we like it or not. Now is the time for physical security leaders to place themselves and their teams in the middle of the wave instead of being swept away by it. That is the message that long-time asset protection and loss prevention leader, Mike Lamb, is sharing with the retail industry.

The traditional physical security strategies for asset protection (AP) and loss prevention (LP) are shifting. Not only are retailers and other businesses dealing with more complicated threats, but they are also dealing with more of them—organized retail crimes (ORC), internal theft, and cargo theft. It is eroding profits and threatening customer and employee safety, forcing security leaders to confront the truth that their traditional security measures will no longer make the cut. It is no longer feasible to have a high headcount that is paid just to monitor and analyze security footage.

This reactive posture—where teams only review video after a loss has occurred—is being rendered obsolete by the speed and sophistication of crime. The answer is not just more cameras, more guards, or even more security solutions. The answer is more intelligence. “AP and LP leaders need to be courageous and think about tomorrow. AI is coming to security whether we like it or not so now is the time to plan down the road and around the curve,” said Lamb.

“AI,” said Lamb, “is already starting to transform security from a reactive cost center into a proactive, data-driven business intelligence tool.” But AI isn’t about replacing people with computers. It’s about elevating what humans can do. “An ORC case could easily take 40 hours to gather evidence, file paperwork, and process but now it can be done better in four hours because AI can help. Anytime you can improve efficiency, why wouldn’t you do it?”

A Proactive Force Multiplier

AI’s strength is that it is a force multiplier. It has the potential to shift security strategies from reactive to proactive, allowing security professionals to get ahead of threats instead of just waiting for a loss or incident and investigating it after the fact. AI helps increase the deterrence factor for security, making their property harder.

Traditional cameras are great at only one thing—recording. They don’t help identify suspects, narrow down time stamps, or detect other anomalies. They are just an eye in the sky. They can provide evidence or corroborate eyewitnesses but that’s it. But when paired with AI, traditional cameras are so much more.

“AI can become a safety tool,” said Lamb. “Soon things like facial recognition, behavior analysis, and license plate recognition will be integrated into a store’s security systems and will prompt actions in real-time from the systems themselves or the personnel.” Another advantage of AI is it can automate routine tasks. It can correlate data and link events to free up personnel from tedious tasks like searching through video.

Cost of Doing Nothing 

If security leaders stand by and watch the AI wave pass by, they will miss the most significant change to physical security since the inception of CCTV cameras. “The cost of doing nothing far exceeds the cost of doing something,” said Lamb.

“We’re still seeing the ripple effect of doing nothing the last time the industry had to adapt,” he continued, citing the challenges with COVID and increased violence that has caused a spike in store closures.

Failure to act now might not lead to store closures, but it will mean playing catch up with other retailers who are riding the AI wave.

Becoming a Strategic Business Partner

The effectiveness of any new technology, especially AI, is entirely dependent on those driving it. “We need AP and LP leaders who are curious and will be part of how AI is shaped instead of being fearful of what it will be,” said Lamb.

Already security leaders in the retail space are being asked to not only secure their stores, but to increase profitability and operational effectiveness (i.e. reducing waste and shrink, improving inventory accuracy, decreasing administrative errors, etc.).

This involves doing their homework and working as more than just security personnel. “We need AP leaders who will position themselves as more than AP. Retailers need that type of leader and they are looking for those types of leaders,” said Lamb. 

But that doesn’t mean they should jump blindly into AI products. That will result in wasted effort and investments. Instead, they need a plan that involves three steps:

1. Identify the problem you’re trying to solve for. This includes collecting historical data so you know how big the problem is. “Don’t confuse effort with results,” said Lamb. “You could be working hard, but if it doesn’t solve problems it doesn’t matter.”
2. Research solutions. Look into multiple solution providers. See how the solution can help long term to avoid procuring one that you set and leave. “You don’t just get an idea on a solution and immediately run to senior leadership,” said Lamb. “Each solution has to be vetted with your own team first. Does it help reduce shrink? Does it help increase the customer experience?”
3. Sell executives. As the expert in the problem and solution, you are responsible for selling any solutions to the executive team. “There needs to be a methodology of selling and advocating for solutions after vetting,” said Lamb.

Securing Internal Buy-In

To ensure maximum return on investment and successful adoption, leaders need to extend their focus beyond the technology and proactively engage the organization, especially their teams and the C-suite. This approach establishes the foundation for AP/LP leaders to drive immediate business value.

1. Approach the people side of it. Begin by showing the people side of the problem you are solving for. Show that the AI solution will not only increase safety and security (and give exact ROIs on both) but that it will also help your employees be more successful.
2. Sell internally. Build a case for the solution. You are responsible for showing how the solution works and how it will have a positive impact on the business. You have to be the internal advocate for the investment in additional technology
3. Everyone has to buy in. This not only includes purchasing, the C-suite, and your own team, but it also includes those on the ground who will use the solution every day. You don’t want to research a solution, invest in it, and set it up just to leave it, never using it to its full potential.

As AP/LP leaders fully embrace AI solutions, they will become successful leaders of tomorrow, helping their companies succeed now and in the future.

A Cross-Industry Solution

AI in the physical security industry will impact more than just asset protection and loss prevention professionals. “This isn’t just a retail issue,” said Lamb. “Everyone has some sort of security needs. Even within retail there is distribution, warehouse, third-party logistics, and interactions with law enforcement.”

We’re in a critical time window for all stakeholders to actively collaborate, influence the trajectory of AI adoption, and ensure it meets the comprehensive needs of the entire physical security ecosystem. Now is the time to ride the AI wave. If you delay, it will sweep across the physical industry without your input or influence.