Well, i'm not sure who your customers are (except companies in Russia, NK..), but european employers would break laws by allowing your software to be used, long even before AI became a thing and especially after the EU AI Act has passed. To put it mildly, no sane corporation would allow such software to be used which tells me a bit about the sanity of the current VC landscape.
Out of interest, would it not be allowed even if the company hosted screenpipe on prem (which seems to be what they do)?
Anything that tracks employees actions beyond high-level "are they doing their job according to the job descriptions" is forbidden by privacy laws and otherwise will be striken down by a workers council.
That's not just specific to digital stuff. E.g. warehouse cameras that film anything else beyond securing entries/exits, like they are commonplace in e.g. the US don't exist for the same reason.
I think he's picturing it as being used by employer's to monitor employees.