AI surveillance in retail faces legal transparency questions

Legal discussions are emerging regarding the transparency requirements for retailers using Artificial Intelligence to analyze security camera footage for theft prevention. Under the EU AI Act, transparency obligations require systems intended for direct interaction with natural persons to disclose that they are AI-based.

However, current guidelines suggest this requirement applies to bidirectional information exchanges, such as chatbots. Because anti-theft AI typically does not communicate with shoppers, it may not fall under the specific disclosure mandates of the AI Act. Additionally, questions remain regarding whether such AI signaling constitutes automated decision-making under GDPR regulations.