Hertz's AI Is Increasing Charges for Damage That Is Essentially Invisible to Renters | Carscoops

      An AI specialist has become the latest individual to face charges from Hertz's "innovative" damage detection technology, and he is liable for $380.

      Hertz's new AI system is designed to identify every blemish and impose significant charges for it.

      Engaging with the company is challenging, even for those who are well-versed in AI.

      However, Hertz claims that the overwhelming majority of its customers have not encountered issues.

      It appears that artificial intelligence truly captures every scratch. When we initially reported on Hertz's AI-driven damage detection, we didn't foresee our headline aging so well. The assertion “No scratch or ding escapes” seemed like clever marketing, but it is proving to be unexpectedly accurate.

      Since the introduction of this new system, numerous renters have shared experiences of being charged for dubious damage. In June, a handful of reports emerged, and more surfaced this month. Recently, another customer recounted his experience, once again underscoring the significant gap between Hertz and its customers over minor dings.

      Earlier this year, Hertz launched its AI technology in the Atlanta area. The system captures a highly detailed image of each car upon leaving the lot. Upon return, it takes another photo to check for any damage. In theory, it should provide an unbiased assessment of the vehicle, yet it's charging customers for dings that most people would overlook.

      Adam Foley, an AI and Automation strategist, detailed his experience with this issue. Two hours after he returned his rental, he received a bill from Hertz for $190 for two ‘damaged areas’. The company kindly offered to reduce this amount to $125 if he paid immediately. He remarked, “This fee is literally the price of the entire 4-day rental minus $5” in a LinkedIn post about his predicament.

      The alleged damages are not what anyone would classify as significant. Foley shared one of the photos Hertz had sent, and while there might be a minuscule new ding, the area is so small that it’s difficult to determine. So much for advanced AI-powered photography; the level of detail in the image leaves much to be desired.

      Unsurprisingly, Foley tried to contact Hertz using its chat system. Despite being an AI expert, he couldn't get the AI-driven chat program to connect him with a real person. “You’re only given explanations for why you still owe $190. So I guess Hertz's new policy is that as long as a car doesn’t look brand new and spotless to AI cameras, the customer will be charged,” he stated.

      At this point, he lost the chance to pay the lower fee of $125, which has now increased because he hasn’t accepted Hertz's terms. The company is now demanding $190 for the damage and an additional $190 for processing and administration fees. As he puts it, he hopes the market will take action on his behalf.

      In theory, the idea could have merit. When functioning correctly, the system can offer an objective and thorough inspection. “I want to be clear that I see this use of AI as somewhat compelling – using cameras and AI to evaluate damages and communicate payment expectations,” Foley acknowledges. “It makes sense.” While it removes the human aspect, there are both advantages and disadvantages, and clearly, the results lean heavily towards the less favorable side.

      We contacted Hertz for a response, and they replied promptly. Here’s their statement:

      “Over 97% of cars examined with this technology show no billable damage, indicating that the vast majority of rentals are free from incidents. Vehicle damage has historically been a common point of contention in the car rental industry for both customers and companies.

      At Hertz, we are employing this technology to confront this issue directly. Our aim is to improve the rental experience by ensuring customers are not charged for damage that did not occur during their rental period while providing greater transparency, accuracy, and speed when new damage is detected. As we continue to implement this technology, we're dedicated to ongoing innovation and continuous enhancement.”

      The company also addressed Foley's concerns regarding communication in a way we did not expect. They indicated that when a customer raises an issue, a human reviews it and communicates the findings through the AI agent in the Hertz app. This may clarify why Foley couldn’t connect with a real person through that method. Hertz states it is working to incorporate actual human interaction into the system.

      Lastly, Hertz directly addressed Foley’s case: “The customer’s escalation was manually reviewed, and it was confirmed that the dents were new. While we understand that some customers may wish for a different outcome, we want to ensure every case is assessed fairly and objectively, using the best available information. We strive to maintain the quality of our vehicles for all customers, and as standard practice across the industry, renters are responsible for any damage occurring during their rental period.”