The risks and rewards of facial recognition technology in office buildings

Over the past few years, offices have integrated more technology, especially as a way to bring people back after the pandemic. One of the most advanced technologies currently deployed is facial recognition. Facial recognition is used as a biometric key to grant access and dispatch appropriate power. Inside the office, many companies are using the technology to track attendance, screen job applicants and monitor employee productivity, among other things. The technology's makers tout its efficiency and ease of use in everyday tasks, such as entering and exiting buildings and monitoring employee activity and attendance. But not everyone agrees. Facial recognition has sparked criticism about the ethics of using biometrics in the workplace, as well as concerns about privacy and accuracy. The use of facial recognition has prompted criticism about the ethics of using biometrics in the workplace, as well as concerns about privacy and accuracy.

We may see more facial recognition technology in buildings these days, but it has been around for decades. Computerized facial recognition technology originated from the research of a group of scientists in the 1960s who worked on training computers to recognize human faces. These early computer programs, created by pioneering researchers, were able to match facial features to images in databases, a core function of today's facial recognition software. It is used for access control in many commercial buildings, allowing staff to enter the building without a badge or card simply by standing still and quickly scanning their face. The same goes for elevators, where staff will be identified and taken to the floor they need to go to.

RealNetworks’ SAFR SCAN is a technology that has become a popular choice within industrial facilities such as government buildings, airports and warehouses. The company makes artificial intelligence products, including facial recognition technology for building access control. A few years ago, RealNetworks began developing some facial recognition algorithms for some consumer products. These algorithms are very effective for real-time video applications, but they have not received much attention after exploring their use in surveillance applications.

Donaldson told me: “I think people are still a little afraid of the public sentiment around facial recognition and the legal ramifications of that in a public setting where people don’t know they’re being monitored.” After joining the company, Donaldson believed in control is the right way out. His company's access control products cover edge devices, where all data and processing is done, rather than being connected to a central server that houses multiple computers. "It's faster, more convenient and is considered safer," he said.

What makes facial recognition better than the ubiquitous badge readers that have become an icon of office buildings? Donaldson points to several reasons. With facial recognition devices in place, staff don't have to track and carry badges, which means more convenience and a more secure building. Lost badges or badges loaned to others pose security risks. Another risk that facial recognition technology can help address is someone following another person into a building once the door is open, a behavior known in the industry as "tailgating." Facial recognition devices can not only read faces, but can also track the person following them via camera and can send alerts containing photos or video footage of the person's image.

The biometric field is developing rapidly, and facial recognition technology is one of the emerging industries. Donaldson is one of many companies hoping to enter the $1.6 billion card reader market. In addition to the face-reading access control technology RealNetworks launched about a year ago, the company is preparing to release another similar product soon. However, aside from public perception of the technology, price may be the biggest obstacle. "Once we get to the right price point, which we think we're already there, we'll start to see really rapid growth in this area," Donaldson said.

Traditional badge systems range in price from $200 to $1,000, while other security options like fingerprint readers typically cost around $1,000. Facial recognition technology typically costs thousands of dollars. Although expensive, facial recognition technology can also be used as entrance systems and security cameras because they are installed facing doorways and can capture visitors with great clarity and record video. To date, Donaldson's company has worked with clients in the government construction sector, including a number of government properties, educational institutions, airports and warehouses in Mexico City, and is seeing a growing number of office buildings using their technology internationally, including America has more. The technology is widely used in China and is becoming increasingly popular in European and Asian countries. Donaldson believes one of the reasons it has seen less adoption in the U.S. is that occupancy rates in many buildings have not yet fully returned to pre-pandemic levels.

That's certainly the case in New York City, where office occupancy has been slowly rising but is still hovering around 50% on average this week, according to data from Kastle Systems. Still, facial recognition technology has major office bosses concerned. One of New York City's largest commercial property owners began installing facial recognition technology in its buildings as early as 2015. A company executive told Business Insider back in 2020 that Vornado began using the technology in 11 of its 35 buildings in New York City, with plans to eventually adopt the system across its entire property portfolio. The technology allows office workers to opt in or out of the system, and at the time, Vornado had about a 40% participation rate in buildings that installed the technology by 2020. Like most facial recognition technology, workers' facial images are not tied to personal identities, and the biometric information is encrypted for protection and stored in a system that is not accessible via the Internet. “We are always looking to incorporate new cutting-edge technologies to make our buildings more efficient and make our tenants’ lives more convenient,” Vornado Vice Chairman David Greenbaum said of the decision to install the technology.

As facial recognition technology becomes more mainstream, we have a better understanding of how people feel. A Pew Research Center survey released earlier this year found that a majority of U.S. adults oppose the use of facial recognition technology to analyze employees’ facial expressions. But when it comes to using the technology to track suspects, respondents expressed doubts about the accuracy of facial recognition, with a majority saying it reads expressions incorrectly and nearly half saying it incorrectly identifies them. Office workers may prefer certain skin colors over others. Many vendors in the HR industry already use facial recognition technology to help them screen candidates during video interviews. But using this technique comes with risks. In a study, an MIT and Stanford study found that multiple facial analysis technology products were biased by skin type and gender, suggesting the technology was better at identifying men and light-skinned people than those with lighter skin. Nonwhite women showed larger differences in accuracy. To avoid this, experts encourage companies using the software to conduct extensive testing before trusting their results.

Andrew Farah is co-founder and CEO of Density, a software company that uses anonymous sensor technology to measure office space performance. His views on facial recognition technology are based on a long-standing legal test: a reasonable expectation of privacy. The use of facial recognition technology in access control is typically located at the front door of a building, which most people consider a public space, and Farah deemed the use of such technology "completely acceptable" in this area. But in private offices, where many employees will expect privacy, especially if tenants use this technology to measure space usage, there are better ways, Farah said. "I think cameras are an extremely lazy thing to do when we have better mechanisms for understanding how space is used," he said.

The use of facial recognition technology in office buildings is likely to be here to stay, especially as it becomes more affordable and continues to become a popular option for other types of commercial buildings such as airports, entertainment venues and schools. If we've learned anything from recent events, it's to think carefully about how it's used and the potential backlash that could ensue. While concerns about facial recognition may seem surprising considering that millions of Americans use the same system to unlock their phones multiple times a day, it may be a sticking point in office buildings for some time. For landlords and office tenants considering using the technology, balancing streamlined efficiency with occupier trust may help allay any lingering concerns.