Hertz’s AI damage scanner appears to be charging customers big bucks for minor dings
In April, Hertz said it would roll out more than 100 AI-powered rental vehicle scanners by the end of this year.
When Hertz announced back in April that it was partnering with AI startup UVeye to install more than 100 AI-powered damage scanning systems at its US airport locations this year, many customers reacted skeptically. An “MRI for cars”? What could go wrong?
Now, we’re beginning to get the answer.
According to some renters interviewed by auto newsletter The Drive and others posting on Reddit, the AI tech rollout has resulted in hefty charges for minor damages that a human employee likely wouldn’t bother charging for.
One customer said they were charged $440 for a one-inch scuff on a wheel, broken down as $250 for damages, $125 for processing, and a $65 administrative fee. On Reddit, another post says that a barely-visible ding led to a $195 charge. Whether these minor damages were actually caused by the renters in question appears to be up to the AI to deduce.
Posts from the hertzrentals
community on Reddit
The Drive reports that customers with questions or concerns about AI-discovered damages have to first bring those concerns to the company’s AI chatbot, which doesn’t allow a human agent to enter the chat.
UVeye’s damage discovery tool sure seems like it could be a big moneymaker for Hertz, which posted a loss of $2.9 billion last year. The rental company reported its sixth consecutive losing quarter last month, shedding another $443 million.
Hertz’s rental rivals, including Avis and Enterprise, are also reportedly weighing AI inspection tech.
