Cultivating New Growth
Unique operating conditions and rapid market growth are leading cannabis operators to get more sophisticated with their surveillance system deployments, says Kevin Brown, Business Development Manager, Cannabis, Hanwha Vision America
Over the last decade, the cannabis industry has experienced tremendous growth, as legalization continues to spread across the country. Its success has also brought a series of unique challenges, in particular, when it comes to security and surveillance.
From small businesses to large multi-state operators, licensed cannabis operators are increasingly deploying more intelligent surveillance systems to keep up with regulations, protect valuable inventory and ensure safety for employees and customers.
The global cannabis market was valued at $57 billion (USD) in 2023 and is projected to grow to $444 billion by 2030, according to Fortune Business Insights. The U.S. market is rapidly expanding, driven by more states legalizing and expanding medical and recreational cannabis programs. This growth surge and evolving industry landscape presents businesses with a constant mix of opportunities and challenges to overcome.
Cannabis operators, who typically manage high-value inventory and deal with cash-heavy operations, are prime targets for theft, fraud and other criminal activity. These businesses also face the unique complexity of adhering to strict regulatory requirements for security measures, varying from state to state, and sometimes city to city. As a result, security and video surveillance technology has become a top priority for cannabis operators.
Leveraging AI for Smarter Surveillance and Compliance
One method that has been widely embraced by the industry is Edge AI.
Artificial intelligence (AI) has reshaped the surveillance industry in recent years, creating smarter, more efficient security solutions. With the highly regulated cannabis market, this technology plays a key role helping operators achieve compliance with ever-changing regulations, while boosting security and improving operations. Intelligent video surveillance systems combining 24/7 video monitoring with cloud management and AI-powered features are becoming more prevalent.
AI-driven systems can, for example, detect and classify distinct objects – people, vehicles, faces, and license plates – allowing for more accurate event monitoring and reducing the amount of irrelevant footage. Deep learning algorithms analyze video footage in real-time, flagging suspicious behaviors such as loitering, trespassing and other security breaches before they escalate. By detecting these incidents quickly and providing immediate notifications, this technology allows for a more proactive approach to security.
Traditional surveillance cameras with pixel-based motion triggers can be inundated with data, leading to an overload of information and a high frequency of false alarms. AI-powered “smart cameras” help solve this problem by only recording or alerting on important events, enabling security teams to focus on relevant activity. This not only improves security, but also can reduce storage requirements and bandwidth consumption – providing significant cost savings for operators in states with long video retention requirements.
When AI-powered cameras identify objects within a scene, they can generate detailed metadata with specific attributes – such as clothing color, vehicle make and color, whether a person is wearing accessories like a hat or glasses, and more. Instead of sifting through hours of recorded footage, this enables users to quickly search and filter video based on a person or vehicle’s description, dramatically reducing the time and effort required for investigations.
AI is also improving more specialized features such as License Plate Recognition (LPR). LPR technology can record vehicle entries and exits, alerting staff to potential security threats in real-time. Individuals can be identified by their license plates before they even reach the perimeter of the facility, allowing security teams to respond appropriately before they enter.
Remote Monitoring & Cloud Storage
With cannabis businesses often spread across multiple locations and states, remote monitoring and cloud-managed video have become essential tools. Remote access to surveillance footage lets businesses keep an eye on different sites, whether they’re dealing with theft, employee issues or conducting compliance audits. In some states, operators also need to provide access for regulators or local law enforcement to view live and recorded video remotely.
Rules governing video retention – specifically how long footage must be stored – vary depending on the location and license type. Most requirements fall between 30 and 180 days, with the exception of a handful of states or local jurisdictions, that put in place longer term storage mandates. Some requirements have even extended up to four years of storage in the past, though these have since been updated to more reasonable timeframes. Regulations also specify where the recordings should be stored – whether it’s on-site storage in a secured area, off-site or in the cloud, or both. Hybrid solutions that combine on-site and cloud storage are increasingly popular, offering the best of both worlds with flexibility and data redundancy.
Theft, Privacy and Supply Chain
Cannabis operations have been seen as prime targets for both internal and external theft, given their high-value inventory. While technology plays a major role in deterring crime, operators must carefully balance security measures with privacy concerns. In some states, laws impose restrictions on certain types of surveillance, and businesses must carefully adapt their security protocols based on local rules.
On top of that, the cannabis industry has a complex and tightly regulated supply chain that spans multiple stages, including cultivation, manufacturing, distribution and retail. Each stage is subject to strict oversight to ensure that products meet legal and quality standards. Seed-to-sale tracking systems are crucial in this industry, and failing to comply with regulations can lead to major penalties, including fines, suspension, or even revocation of operating licenses.
With digital tools now essential for everything from security systems to inventory management and compliance reporting, cybersecurity has never been more important. Sensitive data, such as customer information, needs to be safeguarded against potential breaches. Cameras and other devices connected to a network without strong cybersecurity measures can be vulnerable to cyberattacks. By implementing robust video surveillance solutions with end-to-end encryption, secure storage and operating systems, cannabis companies can protect their business and keep employee and customer data private.
Finally, Perception
Although cannabis is legal in many parts of the U.S., there is still some stigma surrounding the industry. Even in legal states, some areas prohibit cannabis businesses entirely, while others impose restrictions on how many can operate and where. In these environments, comprehensive security measures are not only crucial for asset protection but also to ensure public safety, demonstrate the legitimacy of the cannabis industry and build trust with the local communities and authorities.
As the cannabis sector continues to expand, security and surveillance will evolve rapidly, adapting to meet the growing demands of the market. These innovations will play a key role in helping operators stay secure, compliant and efficient – ultimately supporting the long-term success of the industry.
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About Hanwha Vision
Hanwha Vision (formerly Hanwha Techwin) has been leading the global video surveillance industry with world-class optical design, image processing and cybersecurity technologies for more than 30 years. As it broadens its business to become a global vision solution provider, Hanwha Vision will deliver more valuable and meaningful insights to customers by collecting key information and providing big data analytics utilizing AI and cloud technologies. Learn more about Hanwha Vision.
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