Behind the controversial AI tech used to inspect rental vehicles for damages

As millions of Americans get acceptable to deed the roadworthy for Labor Day weekend, immoderate rental car companies are deploying artificial quality scanners to look for harm — and it whitethorn pb to much consumers getting dinged. 

The caller exertion that spots harm to rental vehicles has sparked concerns among lawmakers aft immoderate customers complained astir astonishment repair costs and added fees. 

Adam Foley and his woman said they rented a car from Hertz during a household travel to Atlanta this summer. When they returned location to San Antonio, Foley said helium started getting automated messages from the rental company. The messages claimed damages were recovered connected the rental vehicle, saying helium owed $80 for 2 tiny dents and different $190 for a processing fee.

"So a full of $350 for beauteous negligible events that I didn't adjacent detect," Foley told CBS News. He raised his concerns past period successful a LinkedIn post. "I deliberation arsenic a user it feels beauteous extortive."

The damages were identified by AI-powered photograph booths that drawback thousands of high-resolution images of the vehicles earlier and aft rentals. UVeye, a New Jersey-based bundle company, provided technology.

An AI-powered photograph booth takes images of Hertz vehicles earlier and aft rentals. CBS News

Hertz says it is presently utilizing the strategy astatine 10 U.S. airports, with plans to rotation it retired nationwide, but added that the institution is inactive continuing to refine the process.

In a connection to CBS News, the institution said the aged process of manually inspecting cars "caused disorder and frustration" due to the fact that it was "subjective and inconsistent."

"With integer conveyance inspections, we're introducing much-needed precision, objectivity, and transparency to the process — giving our customers greater assurance that they won't beryllium charged for harm that didn't hap during their rental, and a much businesslike solution process erstwhile harm does occur," the connection reads.

Hertz besides said it has waived Foley's harm costs, telling CBS News: "We strive to get it close for each lawsuit - and erstwhile we autumn short, we enactment to marque it right."

Democratic Sen. Richard Blumenthal of Connecticut connected Tuesday demanded answers from the CEO of Hertz connected however the exertion is being used, including an mentation connected however the fees are tenable and just to complaint consumers, according to a missive obtained by CBS News.

Republican Rep. Nancy Mace of South Carolina, seat of the Subcommittee connected Cybersecurity, Information Technology, and Government Innovation, besides sent a akin missive to Hertz past week.

"We've seen cases wherever customers person disputed the harm due to the fact that they deliberation it's a shadiness and not really a dent oregon a scratch oregon a mark," said Lindsay Owens, a Washington, D.C.-based user advocate. 

Owens told CBS News that specified exertion tin beryllium utilized for bully and tin marque things easier for consumers. "I deliberation the occupation is erstwhile these technologies are being utilized to overcharge customers," she added.

Hertz declined to beryllium interviewed but said the UVeye strategy offers precision and objectivity, giving its customers "greater assurance that they won't beryllium charged for harm that didn't hap during their rental."

UVeye said its inspection systems are presently inspecting millions of vehicles each period astatine dealerships, work centers and car rental locations. 

Sixt confirmed to CBS News it is utilizing the exertion astatine prime locations. Avis looked astatine AI successful 2019 but their harm appraisal process remains "human-led," the institution said. Enterprise Mobility said they did not usage the exertion astatine their rental locations.

The UVeye scanners are "being calibrated to observe antithetic levels of harm based connected the client," the bundle institution told CBS News successful a statement. "UVeye exertion reduces the request for manual walkarounds, increases conveyance safety, and ensures a reliable, nonsubjective grounds of conveyance condition. The extremity is to aboveground issues early, trim confusion, and springiness customers greater assurance successful the process."

Of the implicit 675,000 rentals scanned truthful acold astatine Hertz, the rental institution says much than 97% showed nary billable damage. 

A CBS News unit rented a conveyance from Hertz astatine Phoenix Sky Harbor Airport recently, and the institution did not proactively notify america that the AI strategy was successful use. When asked astir it astatine the counter, we were not capable to presumption the "before" images of the car — and we did not person a measure for immoderate damage.

As for Foley, whose occupation is to counsel companies connected utilizing AI technology, helium said helium "probably would person picked determination else" had helium known astir it.

"I don't privation to person to interest astir driving down a motortruck that kicks up a rock," Foley said.

Foley added that he's relieved to get his wealth back.

"I deliberation that without nationalist quality sum the charges would inactive beryllium lasting today," helium said. "It shouldn't instrumentality the magnitude of publicity I received pursuing my station to beryllium treated similar a valued customer."

• Hertz