Skip to Content

Privacy in the Age of AI

What Smart Cameras Are Really Watching
July 21, 2025 by
Privacy in the Age of AI
Scallix Inc.


As artificial intelligence continues to integrate into everyday life, the conversation around privacy has never been more urgent. We often think of AI as a helpful tool—streamlining processes, improving experiences, and automating tedious tasks. But what happens when the same technology quietly begins watching us, profiling us, and collecting data we never agreed to give?

A recent investigation at the University of Waterloo uncovered an unsettling truth. Smart vending machines equipped with cameras weren’t just tracking product inventory or sales. Instead, they were gathering demographic information—scanning faces to determine age and gender, and likely building profiles on unsuspecting users. Most students had no idea they were being watched, and certainly weren’t informed about how this data might be used.

This incident reveals a growing issue in the AI world: we don’t always know what these systems are collecting, and we rarely give informed consent. In this case, the cameras weren’t focused on the drinks and snacks being selected. They were focused on the people. It’s one thing to track what products are selling well—it’s another to quietly analyze the faces of everyone who walks up to a vending machine.

The implications are far-reaching. With AI surveillance systems becoming more common, especially in retail, there’s a real danger that privacy becomes an afterthought. These systems can collect far more than we realize: not just what we buy, but who we are, what we look like, and how we behave. Most troubling of all is that these details are often collected invisibly. There’s no warning, no disclosure, and no chance to opt out.

AI systems that analyze demographics often rely on pattern recognition trained on massive datasets. But these datasets can be biased, leading to inaccurate or unfair profiling—particularly for people from underrepresented groups. That’s not just a technical issue. It’s an ethical one. And when companies repurpose this data for advertising, surveillance, or behavioral tracking, the consequences get even more serious.

We need to ask tough questions. Why is this data being collected in the first place? Who has access to it? How is it stored, and for how long? These are not hypothetical concerns. They’re pressing issues that affect all of us, whether we’re grabbing a snack from a smart cooler or walking through a shopping mall under a digital eye.

At Scallix, we believe privacy shouldn’t be the price of innovation. That’s why our Smart Coolers are designed without cameras—period.

Our scale-based technology tracks product interaction, not people. That means no facial recognition, no demographic profiling, and no privacy concerns. Just smart, efficient, and respectful technology.

The smart vending machine at Waterloo is a wake-up call. It reminds us that while AI can be powerful, it must also be accountable. In the age of AI, protecting privacy isn’t just important—it’s essential.

Scallix is committed to leading that change—where smarter doesn't mean more invasive.



Ontario's privacy commissioner responds to smart vending machine investigation