According to Mark Gurman of Bloomberg, Apple is working on an Apple Watch with integrated cameras, with a 2027 release date in mind.
Both the rugged Ultra and the regular Series models are being considered for the camera.

Apple Is Working on an Apple Watch With Integrated Cameras
Like the front camera on the iPhone, the camera on the Series model might be integrated into the screen.
The Ultra model offers greater usability and more space by positioning the camera close to the side button and digital crown.
Different camera placements are made possible by the Series and Ultra’s different designs and thicknesses.
The camera would improve capabilities like Visual Intelligence that are powered by Apple Intelligence (which was introduced with iOS 18.1).
Cameras are used by visual intelligence to identify landmarks and objects and to provide context.
Users may be able to engage with their surroundings in new ways if the Apple Watch is able to “see” its surroundings.
None of these developments have been formally confirmed by Apple.
Rumors of an Apple Watch with a camera first surfaced in 2015, initially focusing on FaceTime functionality.
Apple Is Also Developing AirPods With Infrared Cameras
According to reports, Apple is also developing AirPods with infrared cameras, which could be released by 2026.
For environmental awareness, these AirPods may be able to recognize gestures and integrate with Apple Vision Pro.
By developing its own AI ecosystem, Apple hopes to lessen its dependency on outside services like ChatGPT and Google’s models. Apple wants its Visual Intelligence platform to play a major role in all of its upcoming products, such as AirPods and Watches.
The internal development of Apple’s AI division, which is going through leadership changes, will determine how well these features work out.
Both the camera-equipped AirPods and the AI-enhanced Apple Watch may be on the market by 2027 if development continues as planned.