An inquiry has heard about the risk of injury from personal mobility vehicles travelling at speed on public footpaths.
Operators Lime and Neuron have 1 month to get the e-scooters off the streets.
Dealers could face fines of up to $825,000 for not complying with the new standards.
The AI cameras help to stop riders going onto the footpath.
A coroner’s report has revealed the heartbreaking death of a young Queensland man was caused by the use of the wrong charger for his e-bike.
The proposal comes amid a sharp rise in e-bike and e-scooter related fires in Australia.
The Australian Automobile Association is concerned e-scooter deaths and injuries are slipping under the radar.
The by-law could also impose a ban on the storage of cheaper imported, modified, or damaged e-bikes in apartments.
“We’re taking a considered and evidence-based approach to e-scooters in Victoria,” Victoria’s minister for public transport.