AI on Patrol: Is Cloudastructure the Future of Video Surveillance?

ST. PETERSBURG, FL – January 20, 2026 – A new report from Water Tower Research has cast a spotlight on Cloudastructure, Inc. (NASDAQ: CSAI), a technology firm aiming to overhaul the multi-billion-dollar security industry. The initiation of coverage, titled “AI on Patrol; Next-Generation Video Surveillance,” frames the company as a key disruptor, leveraging artificial intelligence not just to record crime, but to proactively prevent it. The report's analysis suggests a significant disconnect between the company's growth trajectory and its current market valuation, sparking a conversation about its potential as an undervalued player in a high-growth sector.

For decades, video surveillance has been a largely passive affair. Cameras record events, and footage is reviewed after an incident occurs. Cloudastructure is challenging this reactive paradigm with a cloud-native platform that combines intelligent video analytics with live, remote intervention. This approach is designed to transform security from a forensic tool into a real-time deterrent.

Redefining the Watchful Eye with AI

At the heart of Cloudastructure’s offering is a Security-as-a-Service (SaaS) model that eliminates many of the pain points associated with traditional systems. Instead of proprietary hardware and siloed networks, customers pay a monthly subscription per camera. This fee covers cloud storage, advanced AI analytics, and optional 24/7 remote guarding services. A key advantage is its hardware-agnostic design; by using a Cloud Video Recorder (CVR) gateway, businesses can integrate their existing cameras into the platform, avoiding the costly process of a complete hardware replacement.

What sets the technology apart is its proactive nature. The platform’s AI constantly analyzes video feeds, performing real-time object detection to identify people, vehicles, faces, and even license plates. When the system detects unusual or threatening activity, it can trigger an automated audio intervention—like a verbal warning—or alert a human agent in a remote call center. These agents can then verify the threat, engage with the individual through two-way audio, and contact law enforcement if necessary. The company claims this combination of AI and human-in-the-loop oversight achieves up to a 98% incident deterrence rate.

The effectiveness of this model appears to be reflected in customer loyalty, with the company reporting a 99% one-year customer retention rate. This strong retention suggests that clients find significant value in the service, which promises better security outcomes at a fraction of the cost of maintaining on-site guards or legacy CCTV infrastructure.

Further validating its technological prowess, Cloudastructure was recently awarded “Image Processing Solution of the Year” at the Eighth Annual AI Breakthrough Awards. The award recognized the company's proprietary architecture, which is capable of processing over 300,000 videos per hour with sub-500ms latency, enabling the system to deliver real-time threat detection at a massive scale.

An Undervalued Disruptor? The Investor Perspective

The Water Tower Research report has brought Cloudastructure’s financial profile into sharp focus, particularly its valuation. The analysis points out that the company trades at approximately 1.3 times its 2026 sales estimate. This multiple is substantially lower than the peer average and median of around 4.0x, a notable discrepancy given that Cloudastructure is reportedly growing faster than many of its competitors.

This potential undervaluation is juxtaposed against a backdrop of explosive growth. Cloudastructure saw its recognized revenue surge by approximately 270% year-over-year in 2025, reaching over $5.0 million, with a total contract value of $6.3 million. This rapid expansion signals strong market adoption of its AI-driven security solution.

However, the investment picture is not without its complexities. Like many high-growth tech companies, Cloudastructure is not yet profitable, reporting a net loss of $7.83 million for the twelve months ending in September 2025. Investors are also noting the company’s 1-for-6 reverse stock split in late 2024, a move often used to maintain compliance with exchange listing requirements. Despite these factors, at least one analyst has issued a “Strong Buy” rating on the stock with a price target suggesting significant upside, indicating confidence in the company’s long-term strategy and market position.

The Booming Market for Intelligent Surveillance

Cloudastructure is competing in a market that is undergoing a fundamental transformation. The global AI in video surveillance market, estimated at $6.51 billion in 2024, is projected to skyrocket to nearly $28.76 billion by 2030, according to industry research. This expansion is driven by a convergence of factors, including rising security concerns, the development of smart cities, and the increasing affordability and power of cloud computing and AI.

The competitive landscape is crowded, featuring established players like Genetec and Hikvision, as well as fellow cloud-native innovators such as Verkada, Rhombus, and Eagle Eye Networks. In this environment, Cloudastructure seeks to differentiate itself through its emphasis on proactive deterrence, its hardware-agnostic platform, and a business model that promises a lower total cost of ownership.

The industry-wide trend is a clear shift away from simple data capture towards intelligent data analysis. Businesses and property managers are no longer satisfied with just having video evidence; they want actionable intelligence that can prevent loss, reduce liability, and improve operational efficiency. Cloud-based platforms that can be scaled across multiple locations and managed from a single interface are becoming the new standard for enterprise security.

As this technology becomes more sophisticated and widespread, it also raises important societal questions. The proliferation of powerful AI-driven surveillance systems brings discussions about privacy, data security, and the ethical boundaries of automated monitoring to the forefront. Balancing the immense benefits of proactive crime prevention with the need to protect individual liberties will be a critical challenge for the industry, regulators, and the public as this technology continues to evolve and integrate into the fabric of daily life.