Security Monitoring Companies vs Traditional Guards: Who Wins on ROI?

Introduction: The Surveillance Dilemma in 2025 Every business faces a critical decision when it comes to protecting its assets: Should we rely on traditional guards or invest in modern, AI-powered security monitoring? It’s not just a matter of preference—it’s a matter of economics. With retail theft, liability risks, and operational...

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security monitoring companies

Introduction: The Surveillance Dilemma in 2025

Every business faces a critical decision when it comes to protecting its assets:
Should we rely on traditional guards or invest in modern, AI-powered security monitoring?

It’s not just a matter of preference—it’s a matter of economics. With retail theft, liability risks, and operational inefficiencies surging, ROI (Return on Investment) is now the deciding factor.

And this battle isn’t just theoretical. It's playing out across thousands of multi-location businesses, cannabis dispensaries, marinas, retail stores, and warehouses trying to balance cost, coverage, and effectiveness.

So who really delivers better value: security monitoring companies or traditional security guards?
Let’s explore this decision across cost, efficiency, risk mitigation, scalability, and technology impact.

The True Cost of Traditional Guards

Security guards offer visibility and peace of mind, especially in high-traffic or customer-facing areas. But that peace comes with a price:

monitored security systems

1. Annual Cost Breakdown

Role

Estimated Annual Cost (USD)

Unarmed Guard (1 site, 24/7)

$70,000–$100,000+

Armed Guard

$90,000–$150,000+

Supervisor/Overtime

Additional $15,000–$30,000

And this doesn’t account for:

  • Recruitment & training

  • Background checks

  • Uniforms & insurance

  • Turnover management

Over a 5-year period, even a small operation can spend half a million dollars on guarding—often without measurable outcomes.

2. Limitations of Human Surveillance

  • Fatigue: After 30–60 minutes, concentration drops dramatically.

  • Blind spots: One person can only be in one place.

  • No data: Human guards don’t generate reports, video logs, or audit trails.

  • Delayed response: Guards may miss subtle cues, or not react in time.

  • Insurance liability: Missed incidents can cost businesses in legal or reputational damages.

Despite best intentions, traditional guards are prone to error, distraction, and burnout.

 

The Rise of AI-Powered Security Monitoring Companies

The shift toward cloud-based, AI-driven security isn't just hype. It's a seismic change in how modern security systems operate—often at a fraction of the cost of traditional methods.


1. What Security Monitoring Companies Offer Today

Companies like ArcadianAI, LiveView, and Pro-Vigil are changing the game by combining:

  • 24/7 live video monitoring

  • AI incident detection

  • Real-time alerts

  • Cloud video retention

  • Centralized dashboards

  • Integration with alarm systems, POS, and access control

All this happens without guards on-site—but with faster, smarter, and more accountable incident management.

2. Average Costs of AI Monitoring

Feature

Monthly Cost (Per Camera)

AI Monitoring (90-day retention)

$20–$50

Cloud Storage

Included or $5–$10 extra

Forensic Search & Analytics

Included in flat fees or billed per hour

Hardware Lease (if needed)

$10–$30


A 10-camera setup costs around
$400–$600/month, or $7,000/year10x cheaper than one guard.

3. Bonus Capabilities

  • AI-powered alerts: Suspicious behavior, loitering, trespassing

  • Predictive analytics: Detect risk patterns before they become threats

  • Forensic tools: Search hours of footage in seconds

  • Integration with smart systems: POS, fire alarm systems, access control

  • Instant sharing: Law enforcement receives clips within minutes

ROI Comparison: Traditional Guards vs Monitoring Companies

Let’s look at Return on Investment (ROI) from multiple angles.

A. Coverage Efficiency

  • Guards: 1 guard = 1 area at a time

  • AI Monitoring: 1 AI = 10–100 cameras monitored in real-time

 AI wins by reducing coverage costs per square foot.

B. Incident Detection

  • Guards: Prone to fatigue, misses, or bias

  • AI Monitoring: Alerts on abnormal behavior, loitering, restricted access violations

 AI wins with proactive detection and no emotional or cognitive bias.

C. Scalability

  • Guards: Scaling means hiring, training, logistics

  • AI Monitoring: Add more cameras, more licenses—done.

  AI wins for multi-location businesses and franchises.

D. Reporting & Audit Trails

  • Guards: Manual logs (often missed or incomplete)

  • AI Monitoring: Time-stamped video clips, searchable by keyword or event

   AI wins on compliance, accountability, and evidence handling.

Case Study: Retail Chain with 25 Locations

Feature

Traditional Guards

AI Monitoring System

Total Monthly Cost

~$150,000+

~$12,500

Theft Reduction

Moderate (reaction-based)

High (proactive deterrence)

Incident Data

Manual

AI-generated with tags

HR & Management

High complexity

None

Scalability

Requires regional managers

Central dashboard

Insurance Impact

Neutral

Often lowers premiums

ROI (Year 1)

Low

High

ROI improvement with AI monitoring = 8x cost savings and faster detection.

traditional security guards

Why Businesses Are Switching

1. Cannabis Industry

With regulations requiring continuous video surveillance, cannabis businesses are using AI surveillance systems to avoid the cost and risk of human failure. AI guards like Ranger offer smart motion detection, license plate recognition, and even customer behavior analysis.

2. Retail & Franchises

Retail shrinkage (theft and loss) costs North American retailers $100B/year. AI monitoring has been shown to reduce shrink by 30–65% in pilot programs.

3. Marinas and Industrial Yards

Unmonitored outdoor lots often become hotbeds for equipment theft. Traditional patrols miss subtle activity—AI doesn’t.

Human Bias vs Machine Objectivity

Traditional security guards, like any human, carry unconscious biases. Studies have shown:

  • Increased targeting of minorities

  • Missed recognition of non-obvious threats

  • Over-reliance on visual cues (ignoring behavior context)

AI systems, when trained ethically, offer:

  • Objective pattern detection

  • No profiling

  • Fair alert escalation

  • Equal coverage across all areas and times

AI doesn’t look for race—it looks for risk.

Hybrid Security Models: Best of Both Worlds?

While AI monitoring companies lead on ROI, some businesses still need:

  • Event response

  • Crowd control

  • Customer interaction

This is where hybrid models shine:

  • 1 guard + AI monitoring = smarter, faster, cheaper

  • Human handles interpersonal response

  • AI provides real-time support, documentation, and backup

Instead of replacing guards entirely, AI monitoring enhances them.

Key Technologies Used by Monitoring Companies

Here’s what powers modern monitoring:

  • IP cameras with cloud streaming

  • AI security camera systems (object detection, people counting, behavior flags)

  • Integrated alarm monitoring services

  • AI-enhanced video surveillance with search tools

  • Cloud-based surveillance camera platforms with retention and audit logs

  • Access control integration via API or cloud connectors

  • Mobile apps for real-time alerts and 2-way communication

Solutions like ArcadianAI combine these into a plug-and-play platform that works with 3,000+ camera models and installs in days—not weeks.

Final Verdict: Who Wins on ROI?

Factor

Winner

Cost

AI Monitoring

Coverage

AI Monitoring

Scalability

AI Monitoring

Detection Accuracy

AI Monitoring

Human Interaction

Guards

Compliance & Reporting

AI Monitoring

Overall ROI

AI Security Monitoring Companies

 

Conclusion: Your Next Move

Security is no longer about having someone physically on-site—it’s about knowing what's happening in real time, from anywhere, and being able to act.

Want smarter alerts?
Want to stop theft before it happens?
Want to cut costs without sacrificing security?

Then AI-powered security monitoring companies are your ROI winners.

FAQs: AI Security Monitoring vs Traditional Guards

Is AI security monitoring really more cost-effective than hiring security guards?

Yes. Businesses can save up to 80–90% by switching from traditional guards to AI security monitoring. A full-time guard may cost over $100K annually, while AI systems offer 24/7 monitoring for a fraction of that—often under $10K per year.

Can AI monitoring provide the same level of protection as a physical security guard?

In many cases, AI monitoring provides more consistent protection. It never tires, doesn’t get distracted, and monitors multiple cameras in real time—catching behavior that human guards might miss.

What kind of businesses benefit most from switching to AI monitoring companies?

Retail chains, cannabis dispensaries, warehouses, marinas, and multi-location businesses see the highest ROI from AI monitoring due to reduced theft, lower labor costs, and centralized oversight.

Do AI surveillance systems work in real time or just after incidents occur?

Modern AI surveillance systems work in real time, detecting suspicious behavior like loitering or restricted access violations and sending instant alerts—unlike traditional CCTV, which only records for later review.

How does AI monitoring impact insurance costs for businesses?

Many insurers offer lower premiums to businesses that use AI security systems due to their proactive risk mitigation capabilities, better incident documentation, and faster emergency response times.

Are AI monitoring systems difficult to install or maintain?

Not at all. Most modern solutions are plug-and-play, cloud-based, and compatible with thousands of existing IP cameras. No complex hardware or local storage is required, and updates happen automatically.

Can AI security systems replace human guards entirely?

In many cases, yes—but some businesses opt for a hybrid model. AI handles 24/7 monitoring and instant alerts, while human guards are brought in for customer-facing roles or emergency response.

How accurate is AI in detecting suspicious or criminal activity?

With the help of real-time behavior analysis, AI can detect threats with high accuracy and fewer false positives than motion-only alerts. It also provides detailed logs and video evidence for every incident.

Do AI systems help eliminate bias in security monitoring?

Yes. Ethically trained AI systems focus on behavior rather than appearance, helping reduce racial profiling and ensuring objective, consistent threat detection across all locations and individuals.

See What AI Security Looks Like in Action

 Let Ranger, the AI monitoring assistant from ArcadianAI, protect your business.
From cannabis retailers to auto dealerships and retail chains—we make your cameras smarter.

Book a demo today

 

Security is like insurance—until you need it, you don’t think about it.

But when something goes wrong? Break-ins, theft, liability claims—suddenly, it’s all you think about.

ArcadianAI upgrades your security to the AI era—no new hardware, no sky-high costs, just smart protection that works.
→ Stop security incidents before they happen 
→ Cut security costs without cutting corners 
→ Run your business without the worry
Because the best security isn’t reactive—it’s proactive. 

Is your security keeping up with the AI era? Book a free demo today.