Investments, AI, and the Future of Integration: PSA-TEC’s State of the Industry Panel

DENVER – The security industry is transforming rapidly, driven by increased capital investment, advancements in artificial intelligence (AI), and evolving customer expectations. All of these key trends and more were the focus of the annual State of the Industry Panel at PSA-TEC 2025, where industry experts gathered to discuss the current landscape and future outlook.

Led by PSA Network CEO Matt Barnette, key topics included the influx of private equity, the role of AI in security, and how system integrators must adapt to a changing market. Here’s a closer look at what the experts had to say:

A Tsunami of Capital Investment

One of the most striking takeaways from the discussion was the sheer volume of investment flooding the industry. Robert Chevitz, a veteran investor and Managing Partner of Egis Capital Partners, emphasized the continued expansion of capital in the industry.

“The amount of capital coming into the industry continues to grow,” he said. “One reason is the fundamental stability of the industry – the need and demand for security services and products are growing, while the capacity of law enforcement to respond is shrinking.”

While private equity firms continue to aggressively consolidate the systems integration side of the business, venture capital is also fueling new product innovations on the vendor side. Chevitz pointed to companies like Verkada, which raised nearly $800 million, and ButterflyMX, which also attracted substantial funding. He cautioned, however, about the sustainability of the high valuations: “We’ll see how that all works out at the prices people are paying. I’m a little skeptical.”

Meanwhile, veteran integrator Ron Oetjen, now the President of Minuteman Security & Life Safety, noted the competitive pressures from venture-backed manufacturers: “[Integrators] probably face that every day,” he said. “If you’re in this room, a Verkada salesperson with some of that $800 million will likely be calling on your customer soon.”

Integrators, he warned, must decide whether to partner with or compete against these well-funded players.

The AI Revolution in Security

The conversation then shifted to technology, particularly the role of AI in shaping the security industry. Geoff Kohl, Senior Director of Marketing for the Security Industry Association (SIA), highlighted findings from the group’s annual Megatrends Report: “AI remains a big question,” he said. “About one-third of industry leaders think it is appropriately hyped, one-third say it is overhyped, and the rest say it is under-hyped.”

He compared AI adoption in security to the early impact of smartphones: “If you measure it by its first year or two, the impact might seem small,” Kohl said. “But after 10 years? Just look at what the iPhone did to the world.”

Stephanie Haldane, VP of End-User Sales for HID Global, echoed that sentiment: “AI is already here – across access control, cost reductions, and operational efficiencies,” she said. “The challenge is where and how end-users plug it in.”

Haldane also highlighted the rise of robotics in security: “The question is, how do we integrate them into daily operations?”

The potential of AI extends beyond security products. Some integration companies are beginning to leverage AI to automate business operations, such as contract review and customer support. Chevitz shared a compelling example: “We have a portfolio company that automated the RFP response process,” he said. “That bottleneck is now gone, and the company can respond to every proposal they receive.”

The Evolving Role of Integrators

With technological advancements and changing customer expectations, integrators must evolve or risk obsolescence. Haldane noted a fundamental shift in the buying process: “Buyers today do their research before engaging an integrator,” she said. “They expect a digital-first experience. If they don’t like what they see online, they might never call you.”

Moreover, end-user decision-making has become more collaborative with IT. “It used to be that we’d only meet with a security team; now, IT is always in the room,” Haldane observed. “They are jointly making corporate security decisions.”

To stay competitive, Oetjen stressed that integrators must embrace vertical specialization. “90 percent of our revenue comes from five vertical markets,” he said. “You can’t be everything to everyone, and you need to deeply understand a client’s needs.”

Regulatory Pressures and Cybersecurity

Another major challenge facing the industry is regulatory and cybersecurity compliance. SOC 2 and ISO 27001 certifications are increasingly being required for integrators. Oetjen urged integrators to start preparing for cybersecurity compliance now rather than wait for mandates from clients.

“One of our clients told us if we didn’t get SOC 2 Type 1, they would remove us from their network,” Oetjen said. “[The compliance process] took 8-12 months and cost $30,000 to $45,000.”

Cybersecurity is also becoming a bigger factor in security projects. “We don’t see cyber teams taking over our budgets, but they are key stakeholders,” Oetjen added. “It is a team sport now.”

Workforce Development: Still the Industry’s Biggest Challenge

Despite technological progress, the industry’s biggest challenge remains talent acquisition. Kohl emphasized the need to make security an attractive career choice: “We’ve got to change the industry’s outlook,” he said. “We are one of the coolest high-tech industries, but we need to tell that story better.”

Kohl highlighted SIA workforce development initiatives such as the Veterans in Security community to help former military personnel transition into our industry. PSA has also partnered with recruiters to bring new talent into the industry.

Oetjen highlighted Minuteman Security’s successful efforts to recruit young technicians from high school electrical programs: “Some of these kids are used to scanning QR codes and setting up devices in minutes,” he said. “They pick things up incredibly fast.”

Haldane echoed this sentiment, calling for long-term investment in talent: “We need to start at the high school level, show students that this industry saves lives, and bring fresh perspectives into our companies.”

Future-Proofing the Industry

The panel concluded with advice on how integrators can future-proof their businesses. Kohl urged companies to invest in training and embrace new revenue models like managed services. Chevitz stressed the importance of succession planning, saying: “If you’ve got a solid leadership plan, you will unlock tremendous value when it comes time to sell.”

Oetjen reinforced the importance of investing in people: “We use a ‘nine-box’ strategy to identify and develop our top talent,” he said. “This is a human capital business. The companies that invest in their people will thrive.”