Artificial intelligence (AI) has entered the travel sector, introducing systems that can autonomously identify damage in rental vehicles. As summer brings an influx of travelers, rental companies like Hertz are increasingly relying on AI to oversee returned vehicles, challenging the traditional roles of human inspection. The growing trend of automation in rental services raises questions about the implications for both companies and their customers, as automated systems replace human discretion in identifying vehicle damage.
Hertz, along with its brands Dollar and Thrifty, has started to automate the process of vehicle damage detection using AI technology, changing how they charge customers for damages. In an instance at Hartsfield-Jackson Atlanta International Airport, AI detected a dent not seen by a human inspector, resulting in a $195 charge for the renter. Contrarily, companies like Enterprise Mobility and Avis Budget Group are yet to fully embrace AI, with Avis expressing that their damage assessment is predominantly human-driven. Although AI is becoming more prevalent, different companies vary in how extensively they implement these technologies.
How is AI Being Used?
AI usage goes beyond Hertz, with European rental company Sixt similarly integrating AI-enabled processes. Sixt mentions an approach where technology supports but does not replace human judgment.
“As advanced technology helps us, decisions are always made by human experts,” a Sixt spokesperson shared.
At the same time, other firms in varied sectors like insurance and vehicle auctions also utilize AI to discern damage, aiming to streamline processes and reduce conflicts over assessments.
What About Hotels?
The hotel industry is likewise experimenting with AI systems without advancing to automatic billing. These hotels use AI sensors mainly to oversee air quality, identifying prohibited actions such as smoking. However, there have been instances where AI inaccuracies resulted in unwarranted penalties, leading some industry experts to advise caution. AI’s utility and deployment in these scenarios underline both the potential efficiencies and the risk of missteps affecting customer relations.
Backlash appears a common concern across sectors experimenting with AI. Jordan Hollander, co-founder of HotelTechReport.com, cautions hotels that customers may react negatively to AI-imposed charges lacking clear human confirmation.
“The moment a guest gets a charge and can’t get a straight answer about why or how it was verified, you’re in dangerous territory,” Hollander warned.
This sentiment captures the tension between technological progress and its reception by consumers.
Historically, rental companies relied on human expertise to assess vehicle damage at the end of rentals. This traditional method, however, often led to disputes over subjective evaluations. In contrast, the push toward technology aims to create more consistency but also raises concerns about the reliability of AI systems in delivering fair evaluations, reflecting a shift in how businesses balance technology with customer service.
The adoption of AI in identifying rental vehicle damage is representative of a broader trend where technology reshapes service industries. While AI may enhance objectivity and consistency, there remains a critical need for human oversight to ensure that the systems operate fairly and accurately. Decision-makers must tightly integrate automated processes with human judgment to avoid potential pitfalls and maintain customer trust. Ensuring that technology complements rather than replaces human interaction seems key as companies navigate these advances.
