Hertz customers outraged over AI-powered damage-detection system

Rental company Hertz has faced backlash following a controversial move to implement a powerful new AI scanning system.

Car rental companies are turning to AI to help identify damage to their vehicles.

A new, powerful AI tool is assisting Hertz and other companies in identifying minor scratches, leading to confused renters being held responsible for damage.

Hertz, one of the world’s largest car rental companies, first installed the technology in April at Atlanta International Airport, before rolling it out across five other airports in the US.

The scanning system, developed by UVeye, captures thousands of high-resolution images from multiple angles as a vehicle passes through a rental gate during pick-up and return. AI compares those images and uses machine learning algorithms to flag any discrepancies.

The system automatically creates and sends damage reports, which an employee then reviews before flagging any damages to the customer.

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According to the rental company, fewer than three per cent of vehicles scanned by the AI system show any billable damages.

While this seems to be a great way to eliminate false charges, it has proven problematic for customers.

One customer renting from Hertz at the Atlanta airport was charged a whopping $US440 for a wheel scratch just minutes after returning his rental Volkswagen.

Hertz using AI scanners to detect any dents or scratches. Picture: UVEYE

Hertz plans to roll out the system at multiple other locations in the US by year’s end. Picture: UVEYE

Patrick, the customer we’re talking about, says he was alerted to the damage “minutes” after dropping off the vehicle and with it, charges for the blemish: $250 for the repair, $125 for processing, and another $65 in administrative fees. 

It’s unclear if these fees would be the same if the car had been inspected manually by a human, or if the costs are there to cover the expense of Hertz’s partnership with UVeye.

When Patrick attempted to address the matter with a customer service representative, he found the challenge to be quite daunting.

A Hertz customer posted a photo on Reddit of minor damage that resulted in a $195 charge. Picture: @professor_pimpcain/Reddit

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Customers can visit a web portal to view before-and-after photos taken by the scanners. However, if they have any concerns, their options are limited. While a chatbot can flag the issue for review, there is no live agent available to assist them.

However, some customers see it differently. They feel that the AI system is primarily focused on maximising revenue rather than ensuring fairness.

The minor damage was detected by a new artificial intelligence-powered scanner. Picture: @professor_pimpcain/Reddit

The technology’s ability to instantly generate fees — with no human interaction and a short window for discounts — feels less like transparency and more like pressure.

One Reddit user shared his thoughts and wrote: “In reality, the AI picks up a tiny scuff that isn’t actually there because of the shiny paint and maybe it’s wet out, leaving you to spend months disputing charges for something that is basically just free revenue for the company”

Another user that goes by the name ChefCobra said: “AI does what it does, just compares how car was sent out and how it came back. Problem is that when you drive car, even if you are the most safest driver, you will have stone chips from actual driving.”

Reddit Example 2. (Picture: Reddit/animemufin)

Reddit Example 2. (Picture: Reddit/animemufin)

Hertz customers are informed of the damages detected by UVeye within minutes of returning their car rentals. Picture: UVEYE

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While Hertz is the only major rental company using the system extensively, UVeye’s technology is already well-established in other automotive sectors, with notable clients such as General Motors, Hyundai, Amazon, and CarMax.

The company’s inspection systems are in use at hundreds of dealerships, fleet locations and vehicle auctions worldwide.

UVeye is reportedly in talks with additional US rental agencies, suggesting broader adoption may be on the horizon.

It is unclear if this technology will become available to Hertz rentals in Australia.

Originally published as Hertz customers outraged over AI-powered damage-detection system