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As we explored in Part 1 of this series, AI-enabled smart glasses are rapidly evolving from niche wearables into powerful tools with broad workplace appeal — but their innovative capabilities bring equally significant legal and privacy concerns. Modern smart glasses blend high-resolution cameras, always-on microphones, and real-time AI assistants into a hands-free wearable that can capture, analyze, and even transcribe ambient information around the wearer. These features — from continuous audio capture to automated transcription — create scenarios where bystanders (co-workers, customers, etc.) may be recorded or have their conversations documented without ever knowing it, raising fundamental questions about consent and the boundaries of lawful observation.
Part 2 shifts focus to how these core capabilities intersect with consent requirements and note-taking practices under U.S. and state wiretapping and recording laws. In many jurisdictions, recording or transcribing a conversation without the express permission of all participants — particularly where devices can run discreetly in the background — can potentially trigger two-party (or all-party) consent obligations and potential statutory violations. Likewise, the promise of AI-assisted note taking — where every spoken word in a meeting could be saved, indexed, and shared — brings not just operational benefits but significant legal and business risk. Understanding how the unique sensing and recording features of smart glasses intersect with these consent and notetaking issues is essential for any organization contemplating deployment.
The Risk
AI glasses with continuous recording, AI note-taking, or voice transcription capabilities can easily violate state wiretapping laws. Twelve states require all parties to consent to audio recording of confidential communications, including California, Florida, Illinois, Maryland, Massachusetts, Connecticut, Montana, New Hampshire, Pennsylvania, and Washington. Even in one-party consent states, recording in locations where individuals have reasonable expectations of privacy violates surveillance laws. Going one step further, consider the possibility of the user being close enough to record a conversation between two unrelated persons.
The rise of AI note-taking capabilities in smart glasses makes this risk particularly acute. Unlike traditional recording that often requires deliberate action, AI glasses can passively capture and transcribe conversations throughout the day, creating permanent searchable records of discussions that participants never knew were being documented. Smart glasses that record continuously with no visible indicator, amplify this concern.
Relevant Use Cases
- Sales representatives wearing AI glasses that automatically transcribe client meetings without explicit consent from all parties
- Managers using glasses with AI note-taking features during performance reviews, disciplinary meetings, or interviews
- Medical professionals recording patient consultations through smart glasses for AI-generated documentation
- Employees wearing glasses during phone calls where the other party is in a two-party consent state
- Anyone wearing recording-capable glasses in restrooms, locker rooms, medical facilities, or other areas with heightened privacy expectations
- Workers using AI transcription features during confidential business discussions or trade secret conversations
- OSHA inspectors using AI glasses (announced for expanded deployment in 2025) to record workplace inspections without proper protocols
Why It Matters
Violations of two-party consent laws carry criminal penalties, including potential jail time, as well as civil liability. The fact that many AI glasses lack obvious recording indicators—or have only tiny LED lights that are easily missed—compounds the risk. AI-generated transcripts created without consent or even awareness raise a myriad of issues, some of which are outlined here. The ease with which these devices could continuously record and transcribe conversations raises particular concerns relating to increasing emphasis and regulation directed at data minimization.
Practical Compliance Considerations
The compliance challenges surrounding AI glasses are significant, but manageable with proper planning:
- Implement clear policies: Develop clear policies about when and where AI glasses with recording capabilities can be worn
- Get consent: Obtain explicit verbal or written consent from all parties before activating recording features—consent banners on video calls may not suffice for glasses
- Provide notice: Provide visible notification that recording is occurring (though many AI glasses lack adequate indicators)
- Establish technical limits and safeguard: Implement geofencing or technical controls to automatically disable recording features in prohibited areas
- Monitor usage: Maintain detailed logs of when recording features are activated and by whom
- Train users: Train employees on state-specific wiretapping laws, especially when traveling or conducting interstate communications
- Increase awareness of device features and capabilities: For AI note-taking features, ensure participants know transcription is occurring and can opt out
- Leverage existing policies: Apply existing privacy and security controls, such as access and retention, relating to transcripts generated from the wearables.
Conclusion
AI glasses represent transformative technology with genuine business value, from hands-free information access to enhanced productivity and innovative customer experiences. The 210% growth in smart glasses shipments in 2024 demonstrates their appeal. But the legal risks are real and growing.
The key is to approach the deployment of AI glasses (and deployment of similar technologies) with eyes wide open—understanding both the capabilities of the technology and the complex legal frameworks that govern its use. With thoughtful policies, robust technical controls, ongoing compliance monitoring, and respect for privacy rights, organizations can harness the benefits of AI glasses while managing the risks.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
