How Should Rental Companies Evaluate Damage With AI Involved? | Carscoops

      This longstanding issue remains a hot topic - how would you go about solving it?

      17 hours ago

      by Stephen Rivers

      Rental car companies regularly face the challenge of dealing with damage.

      Hertz is facing criticism for implementing an AI-powered camera system.

      If you owned a rental car brand, how would you evaluate damage fairly?

      For years, returning a rental car has involved a nerve-wracking moment: the handoff. The final parking can often lead to anxiously hoping that the rental car company won’t charge you for damages you didn’t cause. Currently, Hertz is addressing this concern with the introduction of AI cameras.

      Unexpectedly, the system appears to be performing better than Hertz executives anticipated, though not necessarily in a manner that comforts customers.

      The Appeal of Objectivity

      At specific airport locations, Hertz is currently using UVEye, a technology that automatically scans vehicles for damage upon return. Theoretically, this represents progress. AI and cameras are supposed to offer objectivity, consistency, and a verifiable account of damage for each rental. The company claims that it only identifies marks longer than one inch, and that 97 percent of rentals are returned without damage.

      Unfortunately, some renters are expressing dissatisfaction, claiming that the technology falls short of expectations. One long-time customer stated they would never return after the system allegedly flagged damage that wasn’t present. They even filmed a video of what they believed was an unjustified claim. However, staff on-site attributed the issue to the scanner, explained they couldn’t override the findings, and directed the customer to a helpline that reportedly provided no assistance.

      This kind of situation raises a larger question: How should rental companies fairly evaluate damage? While AI seems desirable and is undoubtedly powerful, it has its flaws. Human inspections can be even more subjective; they may overlook damages or identify them long after they occurred.

      The Challenge of Trust and Accountability

      Hertz, like all rental companies, understandably aims to hold only those responsible for actual damage accountable. Everyone would prefer their vehicle be repaired by the person at fault if it gets returned with a scratch, a cracked windshield, or worse. But how can they achieve this in the most effective manner?

      Rental cars are susceptible to minor damages like rock chips, accidental door dings, and various other small imperfections. Even if a brand doesn’t fix every minor mark, these imperfections can impact the vehicle's resale value. If you were in charge of a rental car company and had to bear the cost of such damages, how would you ensure fairness for the customer? Share your thoughts in the comments below!