The tech giant has unveiled the IMX500, which combines processing power and memory, to form the most advanced machine-learning device complete with "intelligent vision".
Artificial Intelligence will enable cameras to identify, analyse or count objects without any extra added hardware.
Sony also claims that this allows for increased privacy.
The sensor can take a regular 12-megapixel image and 4K video up to 60 frames per-second.
Sony's Vice President of Business and Innovation, Mark Hanson, has explained how their approach is the most "cost effective".
He told The Verge: "There are some other ways to implement these solutions.
"But I do not believe they will be anywhere close to as cost effective as us shipping image sensors in the billions."
Sony - who supply image sensors for Apple's iPhones and photo and video cameras to Nikon - has already sent out samples of their new sensors to potential customers for a trial, with the product currently only being considered for commercial use at this stage.