A useful feature to have in a video security camera, an auto iris compensates for variations in light levels, from sunlight to shadows. Essentially, the auto iris opens and closes the lens iris as the light changes; this also prevents the camera from being damaged by very bright sunlight.
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It is specifically tied to the lens that is being used in the security camera. The electronics in the camera work together with the lens to tell the Iris how to adjust in order to get an optimal picture.
It is a feature that is best used outdoors. The AI works similar to an electronic shutter but can not be used in conjunction with an electronic shutter.
In better CCTV security camera you have options of how you want to control the Auto Iris. It is most often designated with a DC (direct drive) or sometimes it is done with video control. Direct Drive is the preferred method of setting up the Auto Iris.
For more information on lenses and use in security camera systems please see Aperture, Depth of Field, Field of View, and F-stop.
Also see Manual Iris and Fixed Iris.
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