Hertz charges hefty fees for minor damages caught by AI tool

In recent months, Hertz Car Rental has implemented an AI system designed to identify any damages, including scratches and dents, on rental vehicles. This innovation follows a partnership with UVeye, a leader in AI vehicle inspections, aimed at enhancing vehicle maintenance and transparency for customers. Since the rollout at several U.S. airports, including Atlanta and Dallas, customers have expressed frustration over charges for damage that is often invisible to the naked eye. Reports indicate that customers have received bills for amounts as high as $440 for minor scuffs, and in some instances, Hertz responded by offering discounts for prompt payment. This shift towards automation in damage detection has sparked concerns among renters who fear they might be unfairly charged for damages they believe either did not occur during their rental period or were too minimal to warrant financial penalties. In a notable incident, a couple renting a minivan claimed they were charged for a dent that could have been a shadow, leading to accusations of excessive and aggressive use of the AI tool. According to a Hertz spokeswoman, only three percent of vehicles scanned show billable damage, yet the bills sent to customers have caused considerable discontent. Many renters have taken to social media and forums to express their disapproval, sharing accounts of their experiences and encouraging others to consider alternatives. The growing backlash comes at a time when Hertz is facing financial challenges, with debts exceeding $6 billion. The company’s strategy to utilize AI for cost-cutting and revenue generation has now drawn scrutiny, raising the question of whether the technology compromises customer trust. Despite the backlash, Hertz remains committed to its investment in AI technologies. The company believes these innovations will set a new standard within the rental industry, providing consistent and efficient vehicle inspections. Hertz's leadership insists that using the AI system ensures that customers are only charged for damages that occurred during their rental period. While they aim to improve accuracy and efficiency, the implementation has not been without significant customer pushback.