Key Takeaways from the CAA Winter Convention

Technology Trends through the Lens of Security Alarm Professionals

The 2025 Winter Convention of the California Alarm Association (CAA) took place December 3-6 at the Fairmont Hotel in San Francisco. From the welcome reception on December 3rd through breakfast on December 6th, attendees explored emerging technologies, regulatory updates, and operational strategies shaping the future of the security alarm industry. Workshops helped members understand regulatory and taxation changes that impact their businesses. Presentations discussed how intelligent automation (IA) and artificial intelligence (AI) are changing the industry. Whether implementing power-over-Ethernet (PoE) security alarm networks or expanding services, business owners gained valuable insights through formal sessions and informal networking.

Technology Trends Shaping the Security Industry

Technology in the security sector focuses on intelligent automation (IA) and artificial intelligence (AI) to reduce false alarms and manual intervention. The technologies combine to offer cloud-based solutions, integration with operational systems, and convergence of cyber and physical security. 

Artificial Intelligence

An interactive executive symposium session, moderated by George De Marco, Managing Partner of DECO Ventures, explored what AI really means for security companies and monitoring centers. Attendees left with a practical understanding of AI and how it can enhance operations and assist support teams. They also learned what is required for the successful adoption of AI technology.

At its core, AI processes millions of data points in seconds to identify patterns and respond according to pre-defined algorithms. Its actions are only as sound as the data it processes. Before embarking on an AI journey, business leaders must ensure they have the necessary data collection capabilities. For example, how are alarm alerts recorded? How are open events closed?

Because AI requires large datasets and significant processing power, infrastructure upgrades may be needed. Monitoring centers may become cloud-based, while individual companies may develop a hybrid structure that leverages on-premise systems and cloud-based solutions. Business leaders must understand their existing operating environment and the costs associated with possible upgrades to ensure timely deployment.

Finally, security businesses need to integrate AI across the operational ecosystem to realize the technology’s benefits, such as reducing false alarms, automating repetitive tasks, and improving uptime. Integrating AI-based video surveillance tools with alarm monitoring and access control provides context for better decision-making.

AI in Video Surveillance

Several sessions focused on AI’s impact on video surveillance. OpenEye explored the benefits of AI monitoring tools, while speakers from the National Monitoring Center discussed pricing strategies and service levels for AI-based surveillance.

AI-powered video surveillance systems can automatically evaluate activity in real time, identifying suspicious behavior. They can analyze images, differentiate objects, and detect possible threats. For example, AI can use license plate recognition to track vehicle access to commercial and residential properties, improving control over parking amenities. 

AI enhances remote monitoring capabilities. Security personnel can access footage stored on cloud-based AI platforms from anywhere in real time. Multiple locations can be monitored from a single location with minimal personnel, extending service opportunities and enhancing customer experiences.

AI and Intelligent Automation

Physical security relies on human operators to install, monitor, and manage security systems. Much of the work is labor-intensive and time-consuming, such as sifting through outstanding alerts and viewing hundreds of images. Intelligent automation does more than eliminate repetitive tasks. It can identify patterns and respond to anomalies without human intervention.

Suppose a monitoring center receives an unusual number of false alarms. Although the operators believe the alarms are false, they continue to dispatch personnel. With machine learning, AI-based systems detect patterns in historical data. They find that an alarm triggers every third Saturday between 2:00 and 3:00 am. By analyzing the associated video, AI identifies the false alarm and does not dispatch security personnel. 

Continuous operations are essential for effective automation. With AI and PoE-enabled switches, companies can reduce costs and shorten lead times without compromising security. For example, PoE switches can power the latest surveillance cameras, providing high-resolution images for AI analysis. Cameras can be placed strategically without worrying about a separate power source. When connected to an uninterruptible power supply (UPS), a PoE switch can power cameras even during a power outage. Continuous operations mitigate risks, allowing AI to process data when systems are most vulnerable.

Security Industry Trends for 2026

Incorporating AI into security systems will be the primary trend in 2026. Some companies will start investigating the technology while others will begin their first deployment. On the trend’s leading edge will be firms that integrate AI-based security with operational and cybersecurity systems. Two areas that may impact the industry’s ability to adopt the technology are legislative changes, such as the One Big Beautiful Bill Act (OBBBA), and regulatory standards for managing AI-associated risks. 

A workshop on OBBBA and its tax implications was held on December 4th, highlighting the tax benefits of the new legislation.  

Taxes

The OBBBA increases the maximum Section 179 expense deduction to $2.5 million and the phaseout threshold to $4 million for property placed in service after December 31, 2024. The change allows companies to expense a larger portion of the cost of fire protection, alarm systems, and security systems installed in non-residential buildings.

The Act permanently restores 100% bonus depreciation for qualified new and used assets acquired and placed in service after January 19, 2025. It also adds back depreciation and amortization to the Section 163(j) interest deduction limitation calculation. Restoring bonus depreciation allows businesses to invest in security equipment and systems, accelerate capital investment strategies, and improve cash flow. The interest deduction provides relief for highly leveraged security companies, allowing them to deduct more interest expenses and improve financial flexibility. 

Although the no-overtime tax benefits employees, it does impact employers who must adjust their payroll systems to accommodate the changes. For example, the tax exemption only applies to wages up to a maximum of $12,500 earned above a 40-hour workweek. Anyone making more than $150,000 per year cannot receive the deduction. The exemption is not permanent but requires employers to keep proper payroll records.

Risk Management

Liliann Chaumont from Chaumont Law and Larry St. John from Eclipse Insurance discussed why security firms need a comprehensive risk management strategy to address AI-specific vulnerabilities. As AI adoption grows, insurers are increasingly requiring documented safeguards, governance frameworks, and auditable controls before issuing or renewing policies. Many insurance carriers require documented proof of a company’s safeguards before renewing or issuing a policy. Insurers are seeking governance frameworks that adhere to recognized standards and AI-specific controls to minimize potential liabilities.

Security firms should be prepared to provide metrics, roadmaps, and auditable evidence of their security controls. All AI tools should provide timestamped logs of security events that can be audited or used in legal cases. While AI-specific insurance is in its infancy, the security industry should plan for comprehensive risk management.

Looking Ahead with Versa Technology

The CAA Winter Convention underscored a clear message: the future of security depends on intelligent systems supported by resilient, scalable network infrastructure. AI, automation, and advanced video surveillance can only deliver results when the underlying network is reliable, secure, and built for continuous operation.

Versa Technology designs PoE-enabled networking solutions that help security providers support today’s advanced applications—while preparing for what’s next. To learn how Versa’s PoE switches and industrial networking solutions support AI-driven security environments, contact the Versa team to start the conversation.