Why the smart home industry is rethinking privacy

Why the smart home industry is rethinking privacy

ISE Insights
01 Jun 2026

The connected home was built around data. 

Now the residential technology industry is beginning to confront the consequences. 

Every voice command. Every occupancy sensor. Every connected camera. Every smart lock. Every personalised automation routine. 

Modern smart homes are generating extraordinary volumes of behavioural information. 

And homeowners are becoming increasingly aware of it. 

For years, convenience outweighed concern. 

Consumers embraced connected living because the benefits felt immediate: seamless entertainment, remote access, automated comfort, intelligent security. 

But expectations are shifting. 

As AI becomes more deeply embedded into residential technology ecosystems, privacy is rapidly becoming one of the most sensitive issues facing the smart home sector. 

For residential integrators, developers and smart building professionals, this creates a growing challenge. 

Because the next generation of clients will not simply ask what a system can do. 

They will ask what it knows. 

And who can access that information. 

This is particularly important in the luxury residential market, where clients increasingly expect discretion, control and digital trust. 

The smart home industry is therefore entering a more mature phase. 

One where transparency, cybersecurity and responsible data management are becoming central parts of the value proposition. 

At ISE, exhibitors including Josh.ai, Nice, KNX Association and NETGEAR AV are increasingly focusing on local processing, secure network architecture and privacy-conscious approaches to intelligent home automation. 

Current developments show how quickly the conversation is evolving. 

In recent months, voice control platform Josh.ai – demonstrated at ISE 2026 by CEO Alex Capecelatro – has continued emphasising privacy-first home intelligence, highlighting local processing and reduced reliance on cloud-based data collection within luxury smart home environments. The company's approach illustrates how privacy is becoming an increasingly important differentiator within the smart home market. 

Meanwhile, KNX-based smart building projects across Europe are increasingly highlighting secure interoperability and decentralised control architectures as part of wider conversations around resilient connected living environments. 

The issue extends far beyond cybersecurity. 

Privacy is becoming a design question. 

How visible should technology be? 

How much automation feels supportive rather than intrusive? 

How can AI-driven homes remain personalised without becoming unsettling? 

These tensions are likely to define the next phase of residential technology. 

Because connected living is becoming emotionally complex. 

The more intelligent the home becomes, the more carefully professionals must think about trust. 

And that trust increasingly influences specification decisions. 

Architects, developers and integrators who understand this shift early may gain a significant advantage as affluent homeowners become more selective about the technologies they invite into private spaces. 

Those who ignore it risk creating homes that feel technically impressive but psychologically uncomfortable. 

That is one reason why privacy, AI ethics and cyber resilience are becoming increasingly important conversations at Integrated Systems Europe (ISE). 

Because the future smart home will not simply need to be intelligent. 

It will need to feel trustworthy. 

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