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Verkada report shows cloud-based physical security adopters use AI at 2.6x the rate of on-premise systems, highlighting a growing technology divide in security infrastructure

Executive summary: Verkada released its 2026 State of Cloud Physical Security Report, showing that organizations with cloud-based physical security systems use AI at 2.6 times the rate of those with on-premise systems. The data indicates a growing technological divide in physical security, where cloud adoption correlates strongly with AI advancement, potentially leaving on-premise users at a disadvantage in threat detection, automation, and operational insights.

Who is involved: Verkada (reporting organization), enterprises using cloud vs. on-premise physical security systems, AI technology providers in the security space.

Likely next: Increased pressure on on-premise security vendors to accelerate AI integration; potential shift in purchasing decisions toward cloud-based solutions for AI-enabled security capabilities.

Verkada's 2026 State of Cloud Physical Security Report reveals that organizations using cloud-based physical security systems are adopting AI capabilities at 2.6 times the rate of those relying on on-premise solutions. This significant disparity underscores how deployment model influences technological advancement in the security sector, with cloud platforms enabling faster AI integration due to easier updates, scalability, and data accessibility. The finding suggests a widening gap where legacy on-premise systems may fall behind in intelligent threat detection, automation, and operational efficiency, potentially affecting long-term competitiveness and security outcomes.

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