🤖 AI Moves From Software Into the Physical World #
As artificial intelligence reshapes not only software but hardware and infrastructure itself, the professional audiovisual (AV) industry is preparing for a pivotal moment at ISE 2026.
According to Mike Blackman, Managing Director of ISE, the exhibition reflects how commercial real estate, retail, and public environments are rapidly adapting to AI-driven systems. In recent remarks, he described a future of smart buildings that autonomously manage energy and retail spaces that rely on immersive technology to remain competitive.
But this acceleration comes with a warning: digitizing physical environments too quickly introduces serious cybersecurity, privacy, and regulatory risks—particularly in Europe.
🧠 AI Becomes Embedded Hardware #
Historically, AI discussions in the AV sector focused on content tools such as generative visuals or virtual production. That focus is shifting.
AI is now being embedded directly into hardware systems, especially in corporate real estate and smart meeting rooms. Professional AV vendors and building automation suppliers are integrating sensors and machine learning into room controllers that manage energy usage, climate, and acoustics.
Blackman described systems that recognize individual users and adapt automatically. Temperature, lighting, and sound profiles adjust based on who enters the room, while empty spaces trigger energy-saving modes. Audio systems can now detect changes in occupancy and dynamically modify echo cancellation and volume density as group sizes fluctuate.
These capabilities deliver efficiency and sustainability—but they also expand the digital attack surface.
🛍️ Retail Turns to Experience Over Inventory #
In retail, AI-driven AV systems are being used not for efficiency, but survival.
Blackman characterized traditional retail as facing an existential crisis as consumers prioritize online convenience. Physical stores that endure are evolving into experiential destinations, where digital interaction replaces large inventories.
Examples include smart mirrors that enable virtual try-ons, stores without on-site warehouses that ship directly to customers, and automotive showrooms that use projection mapping to transform a single physical model into multiple vehicle configurations. Brands such as Tesla and BYD already deploy these techniques in compact urban locations.
These experiences rely heavily on sensors, computer vision, and real-time data processing—again pushing AI deeper into physical environments.
🔐 Cybersecurity Risks Multiply With IP-Based AV #
As AV systems converge with enterprise IT networks, they inherit the same vulnerabilities as broader IoT deployments.
Blackman warned that IP-based AV installations are increasingly exposed to unauthorized access, weak authentication, and unencrypted communications. His concerns intensified after a briefing with Spanish intelligence services that demonstrated how easily attackers can exploit public networks.
For integrators and enterprise customers, these risks are no longer theoretical. Data theft, system manipulation, and service disruption are becoming board-level concerns. In response, ISE has introduced a dedicated Cybersecurity Summit aimed at helping system integrators understand threat models and defensive practices specific to AV infrastructure.
⚖️ Regulation, Liability, and Personal Risk #
The expansion of AI-driven environments is colliding with Europe’s strict regulatory framework, including GDPR and the updated NIS2 Directive, which raises baseline cybersecurity requirements across the EU.
Blackman stressed that compliance is no longer just a corporate issue. Under newer rules, executives themselves can be held personally liable, with violations potentially treated as criminal offenses.
A recent example illustrates the stakes: organizers of a major trade show in Barcelona were fined roughly €200,000 for deploying facial recognition at entrances without adequate consent mechanisms. The issue was not the technology itself, but the lack of opt-out options and the storage of biometric data outside Europe.
🧭 Balancing Innovation With Caution in 2026 #
As ISE 2026 approaches, the challenge facing the AV and smart infrastructure industries is clear. AI offers transformative gains in efficiency, sustainability, and customer experience—but it also binds physical spaces to digital risk.
Success in 2026 will depend not on how quickly AI is deployed, but on how carefully security, privacy, and regulatory compliance are designed into systems from the start.