Hertz, a major player in the car rental sector, has recently initiated the deployment of an artificial intelligence-driven damage assessment system, sparking considerable debate among its clientele. This innovative yet contentious approach, developed in collaboration with UVeye, an Israeli technology firm, is designed to meticulously scrutinize rental vehicles upon their return. While the company promotes this as an enhancement to efficiency and accuracy, many customers are expressing dismay over unexpected and substantial charges for even the most minuscule cosmetic flaws. The automated nature of the billing and dispute resolution process has left numerous renters feeling cornered, with little recourse against what they perceive as unfair assessments.

In April 2025, Hertz commenced integrating UVeye's AI-assisted scanners at its airport locations. Originally conceived for detecting explosives in vehicles, UVeye's current technology employs sophisticated computer vision to capture thousands of images of a car, meticulously identifying any irregularities. This advanced scanning capability allows Hertz to detect even microscopic scratches or dings that might previously have gone unnoticed or been deemed negligible by human inspectors. However, this heightened level of scrutiny has led to instances where customers have been billed hundreds of dollars for what they consider trivial damage, such as a small scuff on a wheel or a barely visible dent on the vehicle body.

The introduction of this AI system has significantly altered the customer experience, particularly concerning the return process. For example, one customer in Atlanta reported receiving a $440 bill for a minor wheel scuff, encompassing repair, processing, and administrative fees. Similar anecdotes abound, with others citing charges of nearly $200 for minuscule dents. A primary source of customer frustration stems from the highly automated nature of the dispute process, which offers virtually no direct human customer service intervention. Renters are often presented with instant bills and limited windows for "pay-now" discounts, creating immense pressure to settle charges without adequate time or opportunity to contest them. This scenario has fostered a sense of being exploited, with critics arguing that the AI tool serves more as a revenue-generating mechanism than a genuine service improvement.

Industry observers and seasoned travelers are closely watching Hertz's adoption of AI-driven inspections. While the system boasts rapid inspection times, its infallibility is being questioned. Reports from online forums, such as Reddit, detail instances where the scanner has misidentified shadows as damage, leading to erroneous charges. This has prompted a shift in consumer behavior, with some individuals actively seeking out rental companies or locations that do not utilize AI scanners, or even exploring alternative transportation solutions to avoid renting cars altogether. Despite Hertz's claims of enhanced service, the widespread discontent highlights a growing concern that such technological advancements, when poorly implemented or inadequately regulated, can inadvertently penalize consumers.

Although Hertz has initially equipped only a select few airport rental locations with UVeye technology, plans are underway to expand this system to over 100 locations throughout 2025. This expansion underscores the company's commitment to the new technology, despite the current backlash. For travelers, understanding and proactively inquiring about a rental company's scanning policies before committing to a reservation is becoming increasingly crucial. Furthermore, diligently inspecting and photographing the rental vehicle at both pickup and drop-off remains a vital step to safeguard against potential disputes. While rental insurance—whether through the rental agency, credit card provider, or personal auto insurance—offers a layer of protection, the underlying issues of transparency and fair billing practices within the AI-enhanced rental landscape continue to warrant attention.

The integration of artificial intelligence into the car rental return process marks a significant shift, bringing both perceived efficiencies for companies and new challenges for consumers. While the technology aims to streamline damage assessment, its current implementation has led to widespread customer dissatisfaction due to perceived unfair charges and a lack of human oversight in dispute resolution. This development highlights the importance of consumer vigilance and the need for clear, transparent policies as businesses increasingly leverage advanced AI solutions.