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The Rise of AI in Car Rental Inspections
When renting a car, customers typically fill out forms and note any existing damage on the vehicle. This process helps ensure that renters aren’t held responsible for pre-existing issues. However, Hertz, one of the largest car rental companies, is now using artificial intelligence (AI) to automate this process. While the company claims it’s making things more efficient, some customers are finding themselves in difficult situations with no clear way to appeal.
A Customer’s Frustrating Experience
Adam Foley, a customer who recently rented a car from Hertz, shared his experience on LinkedIn. He described how high-powered cameras took 360-degree images of the car when he picked it up and when he returned it. Hours after returning the vehicle, he received a notification about damages. The AI system flagged what appeared to be a small ding on the roof and another on the hood. Foley argued that these were not actual damages but rather imperfections like dirt or reflections that could confuse the camera.
According to Foley, Hertz’s AI system charged him $190 for the alleged damage, with a reduced fee of $125 if he paid immediately. He noted that this amount was almost equivalent to the cost of the entire four-day rental minus $5. When he tried to dispute the charge, he found the process frustrating. The AI chatbot did not allow him to speak to a human representative, regardless of the options he selected. He felt there was no real avenue for appeal, which left him feeling helpless.
Foley’s experience is not isolated. Last month, a reader named Patrick reported being charged $440 for a scuff on a wheel. Only $250 of that amount was for repairs, while the remaining $190 included processing and administrative fees. These charges raised concerns among customers about whether they were being unfairly targeted by Hertz’s new inspection system.
The AI technology used by Hertz is developed by a company called UVeye. Their system uses bright lights and high-resolution cameras to scan vehicles as they leave and return to the rental facility. The AI then compares the images to detect any changes in the vehicle’s condition. If damage is identified, the customer is automatically charged. The goal of this system was to streamline the rental process, eliminating the need for manual inspections and paperwork.
Legal Concerns and Public Outcry
With increasing complaints, a legal firm called Shubjohns & Holbrook has launched an investigation into Hertz’s use of UVeye’s AI scanners. They are seeking input from customers who have been charged under this new system. The firm argues that the AI may be flagging minor imperfections as significant damage, leading to unfair charges for consumers.
Social media has also become a platform for customers to share their frustrations. Many have posted screenshots of tiny blemishes or supposed dents that led to hefty damage charges. Some have even questioned the accuracy of the AI’s assessments, particularly when compared to the images they provided.
In response to these concerns, Hertz issued a statement defending its new scanners. A spokesperson claimed that over 97% of cars scanned with the technology showed no billable damage, suggesting that most rentals are incident-free. The company also mentioned that it uses a 1-inch standard for dents when determining charges. However, some customers argue that this standard may not align with the actual conditions of the vehicles they rent.
Hertz’s Response to Complaints
Hertz emphasized that customers can still reach out to its Customer Care team via email, phone, or chat to discuss damage charges. The company also highlighted that customers with digital inspections have access to a dedicated chat feature for quick assistance. Additionally, customers can request additional images if they want a better understanding of any damage.
Despite these assurances, some customers feel that the AI system lacks the nuance needed to accurately assess vehicle damage. This has led to frustration, especially for those who rely on rental cars for business purposes. Businesses may not be pleased to learn that their employees were allegedly responsible for damaging a rental vehicle during work-related trips.
Conclusion
Hertz’s use of AI in car rental inspections has sparked controversy, with many customers expressing dissatisfaction over the lack of human oversight and the potential for unfair charges. As more cases come to light, the company faces mounting pressure to address these concerns. The situation highlights the challenges of implementing automated systems in industries where human judgment and empathy are essential. For now, customers like Foley continue to voice their frustrations, hoping for a resolution that ensures fairness and transparency.
