European AI Firms Scale Banned Facial Recognition Systems in India

2026-07-15 · Source: Tech Policy Press · Field: Technology & Digital — Artificial Intelligence & Machine Learning, Cybersecurity & Data Privacy · Depth: Fundamental Awareness, long

Summary

Spanish firm Herta Security is a leading supplier of facial recognition technology widely deployed across India, including over 4,000 cameras in railway stations, prisons, and city-wide surveillance programs like those in Ahmedabad. This expansion occurs despite the EU AI Act, effective since 2025, largely prohibiting real-time remote biometric identification in public spaces within the European Union. Herta has received over €3.3 million in EU research funding since 2020 for projects involving "crowd behavior analysis" and facial recognition, raising concerns about a "dangerous double standard." Legal scholars confirm that Herta's deployments in India, such as those on Indian Railways' Eastern Region, would be unlawful under EU law due to their broad scope and lack of judicial oversight. Furthermore, a significant portion of India's Nirbhaya Fund, established in 2013 with €532 million disbursed by March 2025 for women's safety, has been redirected to mass surveillance, with critics questioning its effectiveness.

Key takeaway

For policymakers considering AI export controls, you must address the ethical dilemma of European companies deploying surveillance technologies abroad that are banned domestically. Your current regulatory framework, like the EU AI Act, creates a "dangerous double standard" by allowing the export of systems deemed too risky for your own citizens. You should explore mechanisms to prevent the export and use of such systems in jurisdictions lacking comparable data protection and judicial oversight, ensuring global digital rights alignment.

Key insights

European firms deploy AI surveillance systems abroad that are prohibited for similar use within the EU, highlighting a regulatory double standard.

Principles

• AI regulation often lacks extraterritorial reach.
• Public safety funds can be diverted to mass surveillance.

Method

The article describes the deployment of real-time facial recognition systems that lift faces from live feeds, cross-check against watchlists, and alert authorities to identified individuals' locations.

In practice

• Audit public funds for intended use.
• Assess surveillance effectiveness against crime rates.

Topics

• Facial Recognition
• AI Regulation
• Surveillance Technology
• EU AI Act
• Data Protection
• Export Controls

Best for: Executive, Investor, CTO, AI Ethicist, Policy Maker, Legal Professional

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Editorial summary, takeaway, and curation by AIssential. Original article published by Tech Policy Press.