Database Activity Monitoring (DAM) involves tracking and analyzing database interactions like queries, updates, and deletions to detect potential security threats. It enhances data security, ensures compliance with regulations such as GDPR and HIPAA, and maintains data integrity. DAM solutions offer real-time monitoring, automated alerts, detailed logging, and user behavior analysis. Implementing DAM requires defining security policies, selecting the right solution, and ongoing monitoring. Challenges include managing alert volumes, which can be mitigated by prioritizing high-risk alerts and conducting regular audits.