10 Apr Protect & profit: AI’s data dividend

As many countries become increasingly urbanised, attractive to tourists, and host significant global events, governments need effective and efficient public safety solutions at scale. Christian Stechel, Partner, and Gustave A Cordahi, Principal, of Strategy& Middle East, part of the PwC network, explore the option of monetising data.

The convergence of artificial intelligence and vast data streams is creating a new era for public safety, offering unprecedented opportunities to prevent crime, respond to emergencies more effectively and optimise resource allocation. But the transformative potential of AI extends beyond simply predicting the next crime hotspot; by intelligently analysing the data generated by these systems, cities and organisations are discovering new avenues for revenue generation, creating a powerful incentive for investment in cutting-edge security technology.

One solution is AI-enabled video monitoring, which governments globally are deploying in public spaces. These systems improve public safety cost-effectively. Although they require costs to install and operate, our analysis shows that governments can monetise the data from CCTV systems, thereby reducing the overall investment by up to 40 per cent.

These systems can help municipal and national governments create smarter, safer cities for residents and visitors while reducing government agency funding requirements.

The growth in visitors to the Middle East region has been remarkable, demanding new security requirements. Saudi Arabia’s Vision 2030 set a goal of 100 million tourists which it has already surpassed – seven years ahead of schedule. Similarly, the UAE seeks 40 million tourists by 2031. At the same time, there is a push to host high-profile events. In addition to the 2022 FIFA World Cup in Qatar and several Formula One Grand Prix races each year, the GCC now holds professional golf, tennis, motorsports and basketball events. In addition, Saudi Arabia will host the 2034 World Cup.

But it’s not sports alone that is drawing in the crowds. There has been Expo 2020 Dubai and LEAP in Riyadh. Saudi Arabia also has annual pilgrimages, which will involve close to 29 million people in 2023.

AI power

While video technology to manage public safety is not new, it has previously required active, manual monitoring by employees. Today, AI can support that process, with algorithms detecting anomalies and automatically triggering the appropriate response. These systems also serve as a deterrent, preventing crimes before they can happen.

The challenge is to deploy this technology in a scalable and effective manner. AI-enabled security requires considerable capital investment to install, and ongoing spending for operation and maintenance. For example, a system of approximately 200 cameras in a small area can cost US$650,000 to US$1 million over the entire lifetime of the system — equating to US$3,000 to US$5,000 per camera.

The solution is to monetise the data streams from these systems in line with three priorities. If GCC authorities take these steps, our research shows that several applications already used in other markets could reduce the funding requirement for deploying and operating AI-empowered CCTV solutions by 30 per cent.

Managing traffic

First, authorities should use traffic and municipal applications as a baseline. Initial frameworks are already in place that allow governments to monetise public surveillance data — though they will likely be refined over time. Use cases include detecting traffic violations such as speeding or driving through red lights, along with municipal violations like public littering or illegal waste dumping.

Most systems can automatically issue citations and levy fines, which generate income that funds system implementation and operation. In Saudi Arabia, local authorities have deployed various AI-enabled systems to detect traffic violations.

Traffic management is another monetisation opportunity. AI-powered CCTV systems can collect tolls through automatic number plate recognition systems, detect traffic incidents and determine liability for insurance companies.

For example, Transport for London generated approximately US$2 billion between 2003 and 2017 by installing CCTV cameras to impose fees on vehicles that are driving or parking in the most heavily congested parts of the city.

Retail applications

Second, authorities should consider retail applications. Beyond traffic applications, the information gathered and processed by AI computer vision algorithms, combined with big data analytics, can enable new use cases for the retail sector.

Currently, tech players like StrataVision are using AI-powered computer vision platforms to build insights based on public CCTV video feeds, enabling retailers to track customer journeys and tailor product selection and marketing efforts based on demographics and behaviour patterns.

Such use cases create economic opportunity and can stimulate innovation if governments release anonymised data sets in compliance with proper data governance.

One eye on privacy

Third, authorities should proactively address privacy implications. For these and other AI applications, governments need to address the implications of monetising public data. Concerns vary widely by market.

At a minimum, authorities should comply with existing or newly implemented data privacy regulations and standards and adapt as those regulations develop.

In addition, authorities should strengthen their defences against cybersecurity attacks, particularly given the wealth of information they are collecting and the government’s responsibility as a steward of data.

GCC countries are growing fast and are significant destinations for international visitors. Through proper data monetisation, governments can deploy AI-enabled public safety systems at scale and in a cost-effective way — creating safer cities throughout the region.