For starters, you need to determine which cars are actually parked, and if that spot is violating the rules. For fixed cameras generally the installation process just marks as spot or lane where every car "counts", but a camera on a moving bus needs to do that on its own.
couldn’t that be done off-line? The active system would just collect the data, plate number, GPS, etc., and the off-line system would process it with a overlay of the city map, etc.
Quoting the official claims from the article, "Only when the system observes a vehicle parked illegally in a bus lane or a bus stop does it record the license plate and capture video of the event." - it seems very reasonable from both practical and privacy standpoint that all that data should not be collected unless there's some reason to believe (e.g. by such an "AI" system) that there likely is an actual violation.