When readers were asked “How well do you think is AI-based encoding suitable to meet real-world demands?” the most common answer was “moderately well,” given by 47.1% of respondents. A significantly large share of respondents—37.6%—even see no reason for moderation and said the technology is “very well” suitable. The combined share of those who are positive about AI-based encoding dwarfed the share of those who said it is “not well-suited” (3.9%), or who said they “don’t know” (11.2%).
The reason for this seems clear: AI-based encoding is seen as key to achieving “lower storage hardware costs” and “lower bandwidth/ network load”—these two answer options were each picked by 42.6% of respondents to the question “Where do you see the most potential for AI-based encoding?”
Other answer categories picked by a significant share of respondents were “more storage on existing hardware” (37.6%) and “easier scaling with more cameras and higher resolution” (26.9%).
Even though respondents could pick up to three answers, a lower share picked the rather technical answer options referring to better “preservation of HD details” (23%) and “faster video search” (21.3%). This shows that AI-based encoding is not seen as one technological innovation among many, but veritable relief to the longstanding challenge to store data efficiently.
Big potential in large-scale verticals
When readers were asked “In which vertical do you see the most benefits?” the answers skewed toward areas where video security is deployed at a large scale. The largest share of respondents—43.8%—picked “industrial/manufacturing,” followed by “critical infrastructure” (38.7% ) and “transportation” (33.1%).
Some verticals that include many SME and small-scale users were also picked by a significant share of respondents, especially “retail” (29.7%) and “residential/smart building” (21.9%). Meanwhile, respondents were more reluctant to pick “education” (12.9%) and “healthcare” (7.8%).
High adoption bars for new standards
AI-based encoding is a genuinely new technology in a field that has long been dominated by a few well-established standards.
- H.264, first introduced in 2003, remains the most widely deployed video codec across industries.
- H.265, introduced in 2013, roughly doubles compression efficiency over H.264 at comparable visual quality.
- AV1, introduced in 2018, is a royalty-free standard developed as an alternative to licensed codecs.
As Guanlan Encoding is built as a H.265-based technology rather than as a new proprietary format, it remains interoperable with all existing decoders and third-party systems that run on H.265. Operators of existing systems using this codec can replace previously installed cameras with devices using Guanlan Encoding without seeing any operational or technical changes. The only change is that the same camera count running at the same resolution and frame rate will result in a significantly smaller data footprint.
When encoding real-life video streams, Guanlan Encoding runs two processing modes in parallel. Dynamic Sensing continuously adjusts how bits are allocated within a scene, preserving full detail on people, vehicles and other moving objects, while compressing static background elements more aggressively. Static Optimization goes further in low-motion footage, applying very high compression to frames with little to no change — in some cases reducing them to just a few dozen bytes.
Solving compatibility issues instead of adding complexity
When asked “What concerns or barriers do you see in adopting AI-based video encoding?” 38.2% of respondents cited “compatibility with existing systems”—the largest share among all possible answers. 35.9% cited “high cost of AI devices”—the second-highest share—followed by “vendor lock-in/ proprietary formats” (31.4%) in third and “unclear industry standards” (30.3%) in fourth.
This might not be surprising, as AI-based encoding only recently became available on the market. It is crucial for vendors like Hikvision to build trust among industry professionals in this early phase. Claims of seamless compatibility need to be backed up by operational reality.
However, industry professionals showed great interest in Guanlan Encoding. When asked “How familiar are you with Guanlan Encoding?” the largest share of respondents—41.5%—said “I've heard of it, but never seen it in action or tested it.” Meanwhile, the shares of those who have had more exposure to the technology and those to whom it is completely new were about equal in size: A combined 30.1% said they have “seen it in action,” “tested it,” or “used it,” while 28% said they had “never heard” of Guanlan Encoding.