Hertz's AI Damage Scanner Sparks Customer Outrage and Raises Concerns About AI Implementation

Hertz' AI System That Scans for "Damage" on Rental Cars Is Turning Into an Epic Disaster

Back in April, the rental car company Hertz announced that it would be using UVeye, an AI damage scanning hardward and software system from a former defense contractor of the same name, to check its cars for damage after they were returned. It didn't take long for problems to arise. As our sister site The Drive reported last month, customers soon started complaining that Hertz was charging them hundreds of dollars for minor cosmetic scuffs that would have been shrugged off by a human employee, or in some cases for phantom damage when none was visible at all. As much as Hertz wants the storm to pass, anecdotal reports make it sound like the system is still a disaster -- and one that's alienating customers even as other rental providers eye similarly divisive tech. In a post on the r/HertzRentals subreddit, one user insisted they were "done" with the agency after UVeye flagged nonexistent dings when they returned their rental. After renting a car for a week from a Hertz location at the George Bush Intercontinental Airport in Houston, the user said that they were alerted that UVeye had flagged some apparent damage on the vehicle. When they checked the car, however, there was nothing visible. Perturbed by the apparent mistake, the user tried to speak to employees and managers at the Hertz counter, but none were able to help, and all "pointed fingers at the 'AI scanner.'" They were told to contact customer support -- but even that proved futile after representatives claimed they "can't do anything." "Did the AI scanner [misinterpret] water reflections or dirt on the black car as damage?" they pondered. "There's no way to even present that possibility, no path to defend yourself. It's an unchallengeable, automated accusation." According to a recent New York Post article, Hertz' UVeye scanners only appear to be deployed at the company's airport locations for now. Still, recent reporting from our sister publication The Drive indicates that other rental companies are investing in similar damage-detection AI software. In interviews with The Drive, disgruntled customers of the Germany-based car rental company Sixt described being fined hundreds of dollars over purported damage detected by the agency's AI, Car Gate. Upon closer inspection, however, it became clear that the images used as evidence had something fishy going on. Two American readers also wrote to the website saying that they had been fined $650 each after Sixt's AI scanners flagged damage, but when they looked at the photos attached to the fines, they noticed that the photos did not match the timeframes in which they rented the cars. In each case, the photos showed damage that occurred before their rentals, meaning they shouldn't have been responsible for the damage at all. In both of those Sixt cases and the latest one from Reddit, the charges were eventually dropped after ample complaints. But how many other people hit a brick wall with customer service, sighed, and coughed up a completely unfair charge? Though Hertz claimed in a statement to Car and Driver last month that UVeye's purpose is to bring "greater transparency, precision and speed" to renting, it's unclear what, if anything, has improved with its usage. Add it all up, and it's a perfect example of how algorithms have been deployed to the detriment of regular people since long before ChatGPT. In theory, the idea is that everybody is treated fairly under the same rules, but in reality, governments and corporations end up offloading decisionmaking onto automated systems and dodging accountability when those judgments are flawed. This isn't just an issue for people who rent cars; look at it as a sign of things to come, as companies -- and governments -- around the world start using AI to replace human labor, even when the tech isn't remotely ready for primetime.

'Longtime' Hertz customer says he's 'done' after AI scanner flagged...

A "longtime" Hertz customer says he is "done" with the car rental company after he claimed that the AI-powered damage detection system improperly flagged a nonexistent mark on the vehicle -- even though video that he filmed immediately afterwards appeared to back up his claim. "After 10 years as a loyal Hertz customer -- hardly any issues, always returning cars in great condition -- I'm done," the customer, a Reddit user who goes by the name Akkasca, wrote on the massaging board site last week. Akkasca did not specify how much he was asked to pay by Hertz to cover the damage. Akkasca's story follows other Hertz customers who have said in recent weeks that they were charged several hundred dollars for minor scrapes and scuffs that were detected by the AI scanner. When angry customers sought to dispute the claim, they were unable to immediately reach a customer service rep. "This system is broken, and the lack of human accountability is infuriating," Akkasca, whose ordeal was first reported by the news site Carscoops, wrote on Reddit. Akkasca wrote that he rented a car from the Hertz location at George Bush Intercontinental Airport near Houston. According to the account, problems began immediately after driving through Hertz's automated return scanner. "Just minutes later, while heading upstairs to catch the airport shuttle, I received a text from Hertz: 'Damage detected,'" the customer wrote. "I clicked the link and, concerned, got off the shuttle with all my luggage and went back downstairs to inspect the vehicle." Upon inspection, the customer said he found no evidence of damage. "The supposed damage area? Completely fine. No visible damage whatsoever. I even recorded a video on the spot to document the condition of the car," they stated. When the customer sought assistance at the Hertz location, he said that the staff was unable to address his concerns. "To make matters worse, no one at the Hertz location could help. Employees and managers all pointed fingers at the 'AI scanner' and told me to contact customer support -- they claimed they had no control over the damage claim." The customer initially believed he would be able to resolve the matter through Hertz's dispute process. "So I figured, no worries. I have a video. I'll dispute it later. I have a flight to catch," they wrote. However, he reported encountering obstacles when attempting to dispute the claim. "The link they send you does NOT allow you to submit a dispute. Calling customer support? Useless. They said they can't do anything, even when I told them I have clear video evidence of the car being undamaged at the exact time the damage was claimed," he wrote. The customer also noted what he perceived as inconsistencies in the AI system's performance. "To make thing worse i noticed damage in another area with the clear sticker the AI didn't even pick up as previous damage! Its A JOKE. If you look below the rear tail light you can see the giant scratch the AI does not even pick up." He questioned whether environmental conditions may have affected the scanner's accuracy. "Did the AI scanner misinterpret water reflections or dirt on the black car as damage? But there's no way to even present that possibility, no path to defend yourself. It's an unchallengeable, automated accusation." Every morning, the NY POSTcast offers a deep dive into the headlines with the Post's signature mix of politics, business, pop culture, true crime and everything in between. Subscribe here! In a follow-up post, the customer said that he finally managed to get through to Hertz corporate and that he was eventually connected to the claims department. "According to the claims department, the damage claim has been denied/dismissed, and I will not be responsible for any charges," he wrote. Despite the resolution, the customer outlined several ongoing concerns about Hertz's process -- describing what he called a broken dispute system, stating: "The link provided to dispute the claim sends you in an endless loop" and "does not allow you to submit any actual dispute." The Post has sought comment from Hertz and the Reddit user. Last week, the company told The Post that the scanner "only detects billable damage." Hertz has defended the technology, saying that "the vast majority of rentals are incident-free" and that "when damage does occur, our goal is to enhance the rental experience by bringing greater transparency, precision, and speed to the process." Hertz uses the UVeye scanners at Atlanta Hartsfield-Jackson, Charlotte Douglas, Houston George Bush, Newark Liberty, Phoenix Sky Harbor and Tampa International. The company plans to expand the service to 100 locations by the end of 2025.