Face biometrics inroads sure to be affected by regulatory U-turns

A nine-figure biometrics acquisition highlights the intersection of responsible AI and face biometrics, one of the key themes of the past week on Biometric Update. Oosto’s price tag is disappointing by some measures, but as a flurry of activity in the U.S. replaces AI regulation with speculation and EU rules take effect, HID notes that gains in ethical practice, data privacy regulation, and performance together are setting up a big year for border biometrics. The UK’s introduction of mobile driver’s licenses and a government digital wallet is welcomed, meanwhile, but cautiously, by digital identity providers like Yoti and analysts like Goode Intelligence.
Top biometrics news of the week
The UK’s plan to introduce mobile driver’s licenses and a government-issued digital wallet this year have been met with a mix of applause and confusion. Goode Intelligence and Yoti are among those lauding the commitment to reusable digital ID, though Alan Goode notes, “We await precise details on how it will operate and supporting applications.” The UK mDL will be delivered through a Gov.uk digital wallet and app. The government has stated the new digital IDs will be allowed for age checks and other interactions with the private sector, causing concern that the government may be taking on every company that went through DIATF certification as a competitor.
Advances in biometrics for border control, with performance improvements powered by AI and adoption driven by the convenience of frictionless authentication, are intersecting with trends in ethical practice and data privacy regulations as 2025 dawns, HID Biometrics Business Unit MD Vito Fabbrizio writes in a guest post for Biometric Update. Fabbrizio explores key trends for biometric travel and border control in the year ahead, and how biometrics have impacted the flow of passengers at Indonesia’s busy Batam Center seaport.
Oosto has been acquired for $125 million by Metropolis, an operator of parking lots automated with AI tools. The facial recognition and computer vision developer had raised at least $352 million in investments, so some may be disappointed, but the earnings multiple of over six times reflects significant optimism. The multiple is closer to 12.5 times, according to CTech, which notes the value Oost investors are recouping is mostly in Metropolis stock. CTech describes Oosto (born as AnyVision) as a company with great technology, that was ahead of its time but lacking a sustainable business model or compelling product.
Sri Lanka has procured 350 high-resolution cameras and fingerprint biometric scanners to enroll people for its SL-UDI initiative as the country transitions to a national digital ID. Deputy Minister of Digital Economy Eranga Weeraratne tells Biometric Update that the tender includes 400 more devices. The government says it has already integrated 16 government institutions with its digital payments system.
Zambia in the process of procuring technology and services for four upgrades to its digital ecosystem with $6 million from the World Bank, the government body charged with leading the country’s digital transformation revealed. Zambia is also piloting MOSIP’s EET to connect public services and digital IDs, and developing a digital ID and trust services framework.
The Dominican Republic awarded a tender to produce 5 million biometric passports in December, and the country is on track to start issuing them in August. The passports will include face and fingerprint biometrics, and the Dominican is launching a service for people to schedule an appointment to have their data collected by agents visiting their home.
America is taking a new direction on AI, with President Donald Trump rescinding the executive order from his predecessor on encouraging competition, safety and ethics in AI development on his first day in office. Over the balance of the week, President Trump launched the $500 billion Stargate initiative to build data centers and other infrastructure for AI and issued his own EO rolling back AI regulations, including export restrictions. The move is intended to remove barriers to innovation, but critics contend it increases the risks technologies like facial recognition could pose to personal privacy, or with algorithmic bias.
Mexico’s AI Bill, on the other hand, tacks much closer to the EU’s approach, Corsight Chief Privacy Officer Tony Porter writes in a guest post. Porter reiterates Corsight’s commitment to responsible AI, and describes the business advantage of responsible compliance. As the EU’ AI Act’s ban on systems posing “unacceptable risk” takes effect, the European Association for Biometrics convened a meeting of stakeholders representing industry (Idemia), bureaucracy (the AI Office) and academia (CiTiP at KU Leuven) to discuss the implications of its various exceptions, exemptions and exclusions.
Even within the biometrics industry, professionals cannot find a consensus on the relationship between biometrics and AI, due to disparities in how they define each term, the Biometrics Institute has found. A new paper from the Institute explores the relationship between the two concepts.
Face biometrics systems used by DHS are delivering high accuracy for all demographic groups, according to a new, according to a comprehensive new report from the agency. The report on the Department’s use of facial recognition and “face capture” technologies also presents the results of eight performance reviews for priority DHS applications.
An analysis of breached passwords by Specops shows 23 percent of a billion stolen credentials found in 2024 are considered complex enough to meet the usual security standard. The most common passwords found were the usual default and lazy choices long-familiar, but all of them were obtained by hackers through malware.
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Article Topics
biometric identification | biometrics | digital ID | digital identity | facial recognition | week in review
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