At a time when artificial intelligence (AI) is reshaping industries across the globe, Verkada is betting that one of the biggest transformations will happen far from Silicon Valley chatbots and productivity software—in the physical world.

The company, which builds AI-powered security systems for schools, hospitals, warehouses, office buildings and industrial sites, is increasingly using generative AI to prevent crimes before they happen rather than simply recording them afterward.

"We solve a problem in the world which we think is extremely important, which is safety in the physical world,” Verkada CEO Filip Kaliszan told Benzinga in an interview. “You could think of it as bringing physical AI into the world to deliver safety."

That push is scaling quickly. Verkada now serves more than 30,000 customers globally, manages over 2 million devices and generated roughly $1 billion in sales last year.

From Cameras To Real-Time AI Intervention

For decades, the physical security industry largely competed on hardware, trying to offer better cameras, better locks, and better alarm systems, the CEO explained.

For Kaliszan, the future is software.

Advances in AI are allowing security systems to move from passive monitoring to active intervention. Instead of simply capturing footage for later review, systems can now identify suspicious behavior in real time, generate alerts, and even automatically engage intruders verbally.

Using AI-enabled cameras, the CEO said Verkada’s system can now detect human behavior in real time. If suspicious activity is detected, the system can generate automated voice warnings through on-site speakers.

In many cases, that alone is enough to deter theft before it escalates, Kaliszan explained.

The system can also escalate responses dynamically — starting with polite warnings before dispatching human security personnel and law enforcement if necessary.

AI As A Force Multiplier For First Responders

One of the company's central arguments is that AI can help offset growing labor shortages across security and emergency response professions.

"There's a massive labor shortage," the executive said in reference to first responders and law enforcement.

Rather than replacing humans entirely, Verkada’s systems are designed to automate repetitive monitoring tasks while routing critical incidents to trained personnel with better contextual information.

When incidents escalate, human operators still review footage and communicate directly with law enforcement. But AI helps streamline the workflow by surfacing relevant clips instantly. It can also identify entry points and provide detailed situational awareness.

Privacy Concerns Remain Central

As AI surveillance capabilities become more sophisticated, privacy concerns remain one of the industry's biggest challenges.

Kaliszan stated that Verkada deliberately avoids describing itself as being in the "surveillance business," instead positioning itself as a safety platform.

"We think privacy is core to our society. Our mission is to protect people and places in a privacy-sensitive way," Kaliszan said.

Verkada's customer data remains isolated and owned by each client rather than pooled across organizations. The company also uses identity protection. In hospital settings, for example, Kaliszan explained that Verkada's systems can automatically blur faces in live video feeds that nurses monitor. Staff can temporarily unblur footage if an incident requires closer review.

The company has also built accountability tools into its platform, including audit trails showing who accessed camera feeds and when.

"I think the best way to achieve privacy and make sure that these systems are used responsibly is to make people who use these systems accountable," Kaliszan said.

Betting Big On Physical AI

The physical security market is entering a major technological transition driven by rapid advances in AI models, Kaliszan stated.

Verkada's cloud-based software infrastructure enables it to quickly deploy new AI capabilities to customers. That pace of development is fundamentally changing what businesses believe is possible.

"I think we are in one of these exceptional moments in time. Companies will either leverage this to their advantage or they'll completely miss the train." Kaliszan said.

For Verkada, the next phase of growth appears centered on expanding AI’s reach into the physical world, not only protecting buildings and assets but also increasingly automating how those spaces operate.