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Top 5 Facial Recognition Challenges & Solutions

Cem Dilmegani
Cem Dilmegani
updated on Sep 10, 2025

Facial recognition technology has rapidly integrated into daily life, powering applications ranging from access control systems to law enforcement investigations. Yet its widespread adoption has also exposed a range of technical, ethical, and societal challenges.

Discover the top 5 facial recognition challenges and solutions to prevent fraud and misuse.

1. Privacy and surveillance

Facial recognition technology can enable mass surveillance without consent. When deployed in public spaces by government agencies or businesses, it allows tracking of individuals without their knowledge, raising privacy concerns and threatening civil liberties.

For example, the Metropolitan Police in London has doubled its use of live facial recognition, scanning millions of people in public spaces each year, with little regulation in place.1

Solutions:

  • Establish clear legal frameworks to regulate government use and prevent unauthorized surveillance.
  • Require written consent when facial recognition data is collected in non-public contexts.
  • Implement transparency measures, such as audits and regular reporting on deployments.
  • Limit storage of biometric data to specific identification purposes and strengthen data protection controls.

Real-life example:

In China, regulators have introduced rules to prevent people from being forced to use facial recognition for daily services, such as hotel check-ins or gated community entry, addressing growing privacy concerns.2

2. Bias and misidentification

Facial recognition systems misidentify marginalized groups at higher rates. Accuracy drops for people of color, women, children, and older adults, leading to false positives and wrongful arrests when used by law enforcement.

Solutions:

  • Train models on diverse datasets representing multiple demographics.
  • Require independent testing to identify algorithmic bias.
  • Apply conservative thresholds and ensure human oversight of all matches.
  • Prohibit law enforcement agencies from relying solely on automated outputs.

Real-life example:

At the Notting Hill Carnival, live facial recognition was criticized for disproportionately misidentifying people of color, sparking debate on racial profiling.

Civil rights groups in the UK warn that expanding such systems without addressing bias risks deepening discrimination in policing.

An example of facial recognition technology employed by UK law enforcement as part of a national database.

Figure 1: An example of facial recognition technology employed by UK law enforcement as part of a national database.3

3. Data security and misuse

Facial data, once stored, becomes highly sensitive because it cannot be changed like a password. If compromised, it can be exploited for identity theft, fraud, or unauthorized surveillance. Weak oversight of facial recognition services amplifies the risks of misuse.

Solutions:

  • Encrypt all stored facial recognition data and limit retention periods.
  • Mandate compliance with strong data protection standards and regular audits.
  • Apply strict access controls to ensure only authorized personnel handle biometric data.
  • Require clear incident response plans to protect individuals in the event of breaches.

4. Technical limitations in real-world conditions

Accuracy often declines in uncontrolled environments. Poor lighting, occlusions such as masks or glasses, pose variations, and low-resolution images all reduce system reliability. This undermines identity verification, access control, and law enforcement applications.

Solutions:

  • Improve standards for image capture to ensure high-resolution inputs.
  • Apply liveness detection to confirm that real people are present during scans.
  • Use advanced methods such as 3D face modeling and GANs to reconstruct occluded features.
  • Employ multimodal authentication (combining face with iris, fingerprint, or voice recognition) in sensitive areas.

Real-life examples:

According to a recent study, facial recognition systems continue to face significant challenges when used in real-world conditions. To address these limitations, researchers are developing methods such as deep learning, 3D facial modeling, and generative techniques that can reconstruct missing features.

The study also highlights the benefits of combining facial recognition with other biometric approaches to enhance accuracy, while emphasizing the importance of privacy-preserving techniques, such as federated learning and encryption. It concludes that, despite rapid progress, challenges surrounding fairness, accuracy, and privacy must be addressed to ensure the responsible use of facial recognition technology.

An example showing 30 different types of common distortions and appearance changes to manage facial recognition challenges.

Figure 2: The image shows 30 different types of common distortions and appearance changes.4

Another study on facial recognition challenges highlights that surveillance and reconnaissance systems often suffer from reduced accuracy in facial recognition due to low-quality footage, occlusions such as glasses, and demographic biases in training datasets.

To address these issues, the researchers developed a deep learning framework that uses autoencoders and generative adversarial networks (GANs) to generate synthetic data, manipulate facial attributes, and enhance degraded images.

Key components of this approach include a model to adjust skin tones for greater demographic representation, a system to remove eyeglasses while preserving identity, and an image enhancement module that improves clarity in low-resolution surveillance footage. Tested on the CelebA dataset, the method demonstrated improved dataset diversity, reduced bias, and enhanced recognition accuracy in challenging conditions.5

5. Ethical and societal issues

The widespread use of facial recognition raises significant ethical concerns regarding fairness, transparency, and trust. Deployments without written consent fuel public backlash, while unchecked expansion risks normalizing surveillance and eroding civil liberties.

Solutions:

  • Mandate disclosure by businesses and government agencies on how facial recognition systems are used.
  • Require meaningful opt-in consent for individuals.
  • Create independent ethical review boards to oversee deployments.
  • Launch public awareness campaigns explaining both the benefits and risks of the technology.

Real-life example:

According to a recent report, India’s plan to introduce an AI-powered facial recognition attendance system in schools under the Students Achievement Tracking System (SATS) has sparked serious concerns about privacy and ethics.

A group of experts warned that such systems could expose sensitive student data to misuse or theft, fearing that images could end up in the hands of commercial entities or even child traffickers. They emphasized that classrooms are meant to be protected spaces, not surveillance zones. They recommended safer alternatives, such as strengthening School Development and Monitoring Committees (SDMCs) and utilizing free and open-source software (FOSS).6

What is facial recognition?

Facial recognition is a biometric approach that identifies or verifies a person by analyzing unique facial features. Unlike passwords or tokens, it relies on a person’s own face as the credential.

This technology converts facial images into mathematical patterns, sometimes referred to as templates or faceprints, which can then be compared with stored facial data. It is used both for identification in large databases and for verifying a claimed identity.

Facial recognition systems are now an essential part of security systems, access control, and identity verification processes across many businesses and government agencies.

How does facial recognition work?

Facial recognition technology works by capturing a facial image, isolating the face within the image, and analyzing distinctive facial features. These features include the relative distances between the eyes, nose, mouth, and other key points, as well as additional traits such as skin texture.

Advanced facial recognition models utilize artificial intelligencecomputer vision, and deep learning to create highly accurate representations of faces, enabling the technology to identify or verify individuals with exceptional accuracy. The use of facial recognition extends from unlocking personal devices to supporting law enforcement agencies in public spaces, raising both opportunities for improvement and privacy concerns.

The steps of facial recognition technology

A typical face recognition system follows a clear sequence:

  • Image capture: The system records a facial image or frame from a video. The quality of facial scans significantly impacts the results, with high-resolution images typically yielding more accurate matches.
  • Face detection: Specialized algorithms locate the face in the captured image and separate it from the background. This step is essential before analyzing facial features.
  • Feature extraction: The system encodes unique facial features into a numerical template that represents a person’s identity. Some facial recognition technologies use three-dimensional data to enhance accuracy.
  • Comparison: The extracted template is compared against stored facial recognition data in a database or against one specific face image, depending on whether the task is identification or verification.
  • Decision: The system evaluates the level of similarity between the probe and stored data, then outputs potential matches or confirms an identity.

For example, Amazon Rekognition utilizes collections to store face vectors, which are mathematical representations of facial features rather than images themselves.

The workflow is:

  • Create a collection to hold facial data.
  • Index faces to detect and store face vectors.
  • Create a user and associate faces to group multiple images of the same person into a user vector for higher accuracy.

You can then search faces in images, stored videos, or streaming video using operations like SearchFacesByImage or SearchUsersByImage. This enables use cases such as authenticating employees at entry points by comparing live facial scans with stored data, based on similarity scores.

An example of how Amazon's facial recognition software labels facial features.

Figure 3: An example of how Amazon’s facial recognition software labels facial features.7

How to measure accuracy

Accuracy in facial recognition technology is measured through specific metrics that capture the likelihood of correct or incorrect matches. Common measures include:

  • False Match Rate (FMR): The probability that the system incorrectly matches two different people.
  • False Non-Match Rate (FNMR): The probability that the system fails to match two images of the same person.
  • Identification rates: Metrics such as rank-1 identification rate indicate how often the system correctly identifies individuals from an extensive database.
  • Error trade-offs: Performance is often presented in graphs, such as ROC curves, which show how false positives and false negatives change as the decision threshold is adjusted.

Accuracy depends on the quality of the face images, lighting, angle, and even changes in appearance, such as facial hair. It also varies across facial recognition models, which raises important ethical concerns about algorithmic bias and fairness toward specific groups.

What is the confidence score in facial recognition?

A confidence score represents how strongly a facial recognition system believes that two facial images belong to the same individual. It is a similarity score, not a direct probability of correctness. Higher scores indicate closer matches, but interpretation depends on how thresholds are set in the face recognition system. Key points include:

  • Calibration: Confidence scores vary across facial recognition software and should be aligned with operational goals.
  • Threshold choice: Higher thresholds reduce false positives but may also increase the number of missed matches. In law enforcement, lower thresholds may be applied to generate potential matches, with humans making the final decision to reduce the risk of wrongful arrests.
  • Influence of conditions: Poor lighting, occlusion, or changes in unique facial features, such as new facial hair, can reduce confidence scores and affect outcomes.
  • Policy implications: Because facial recognition data is sensitive biometric data, confidence thresholds must be managed with data protection safeguards, personal privacy considerations, and awareness of ethical issues such as racial bias and potential misuse in unauthorized surveillance.

Confidence scores, therefore, help balance the technology’s ability to identify individuals against the risks of false positives and the broader challenges of facial recognition that many businesses, government agencies, and law enforcement face.

Principal Analyst
Cem Dilmegani
Cem Dilmegani
Principal Analyst
Cem has been the principal analyst at AIMultiple since 2017. AIMultiple informs hundreds of thousands of businesses (as per similarWeb) including 55% of Fortune 500 every month.

Cem's work has been cited by leading global publications including Business Insider, Forbes, Washington Post, global firms like Deloitte, HPE and NGOs like World Economic Forum and supranational organizations like European Commission. You can see more reputable companies and resources that referenced AIMultiple.

Throughout his career, Cem served as a tech consultant, tech buyer and tech entrepreneur. He advised enterprises on their technology decisions at McKinsey & Company and Altman Solon for more than a decade. He also published a McKinsey report on digitalization.

He led technology strategy and procurement of a telco while reporting to the CEO. He has also led commercial growth of deep tech company Hypatos that reached a 7 digit annual recurring revenue and a 9 digit valuation from 0 within 2 years. Cem's work in Hypatos was covered by leading technology publications like TechCrunch and Business Insider.

Cem regularly speaks at international technology conferences. He graduated from Bogazici University as a computer engineer and holds an MBA from Columbia Business School.
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