Smart Glasses at Work — Innovation or Legal Headache?

Dear Will & AiME,

Smart glasses and other wearable tech are starting to show up in our offices and facilities. Some employees are excited about productivity gains, while others are concerned about privacy and boundaries. From a business perspective, what legal and operational issues should we be thinking about before this becomes mainstream?

— Head of Operations at a Professional Services Firm

Short answer 💡

Smart glasses can improve productivity but introduce legal risks around privacy, consent, data ownership, and confidentiality. Businesses should update policies, clarify acceptable use, and address compliance and trust before adoption scales.

Dear Head of Operations,

Wearable technology, such as smart glasses with cameras, microphones, and AI assistants, has moved from novelty to a workplace tool. Whether used for training, remote assistance, safety, or productivity, these tools raise questions that businesses should address early, before adoption outpaces policy.

Privacy Concerns Come First

One of the biggest issues with smart glasses is passive data collection. Unlike phones or laptops, wearables can record audio, video, and biometric data continuously and discreetly.

From a business perspective, this raises several concerns:

  • Employees, clients, or visitors may be recorded without clear notice or consent.

  • Confidential meetings or sensitive discussions could be captured unintentionally.

  • Workplace surveillance laws and consent requirements vary by jurisdiction, creating compliance complexity.

Even if a company isn’t deploying the devices itself, employee-owned wearables used at work can still create exposure.

Acceptable Use Policies Matter More Than Ever

Most acceptable use policies were written for laptops, email, and phones, not AI-enabled wearables.

Businesses should consider whether their policies address:

  • When and where wearable tech may be used (e.g., meetings, client interactions, secure areas).

  • Prohibitions on recording audio or video without authorization.

  • Use of AI features such as real-time transcription, facial recognition, or data analysis.

  • Storage and sharing of data captured through wearables.

Clear rules reduce ambiguity and help manage expectations before problems arise.

Confidentiality, IP, & Trade Secrets

Smart glasses introduce new risks to confidential information. A wearable that records or summarizes conversations could inadvertently capture:

  • Trade secrets or proprietary workflows.

  • Client or customer confidential information.

  • Pre-decisional discussions that were never meant to be memorialized.

Businesses should review existing confidentiality agreements, NDAs, and internal controls to determine whether they need to be updated to explicitly address wearable and AI-assisted recording.

Who Owns the Data from Wearable Devices?

Another issue is who owns the data generated by wearable tech. Questions to consider include:

  • Does the device vendor retain rights to audio, video, or metadata?

  • Are recordings used to train AI models?

  • Where is the data stored, and who can access it?

  • If an employee uses a personally owned device, who owns the data it generates-the company or the employee?

If employees use personal devices, these questions become harder to control, making policy guidance and disclosure even more important.

Workplace Culture, Trust, and Transparency

Beyond legal risk, wearables affect workplace dynamics. Employees may feel monitored, even if that’s not the intent. Clients may be uncomfortable if they’re unsure whether they’re being recorded.

Businesses should balance innovation with transparency:

  • Make expectations clear.

  • Train employees on appropriate use.

  • Communicate openly about what is, and isn’t, acceptable.

Trust is easier to maintain when technology use isn’t ambiguous.

What Should Businesses Do Before Adopting Smart Glasses?

Adoption of smart glasses and wearables can accelerate quickly once use cases mature. Businesses should therefore act now instead of waiting for problems to arise. Practical next steps include:

  • Reviewing acceptable use and privacy policies.

  • Identifying environments where wearables should be restricted.

  • Evaluating vendor terms for enterprise deployments.

  • Training employees on responsible use of wearable AI.

Smart glasses and wearable AI tools offer business benefits, but they blur lines around privacy, consent, confidentiality, and data ownership. By addressing these issues proactively, businesses can embrace the technology's benefits while minimizing future complications.

— Will & AiME

Three Takeaways:

  1. Smart glasses introduce unique privacy and confidentiality risks due to passive recording and AI features.

  2. Acceptable use policies should be updated to address wearable and AI-enabled technology explicitly.

  3. Early planning helps businesses balance innovation with legal compliance and workplace trust.

Will Schultz & AiME

Will Schultz is an intellectual property and technology attorney and chair of Merchant & Gould’s Internet, Cybersecurity, and E-Commerce practice. He advises businesses on AI, online platforms, digital assets, and emerging technology law, drawing on experience as both a lawyer and entrepreneur.

https://www.merchantgould.com/people/william-d-schultz/
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