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AI-Powered Car Inspections Spark Concerns In The US

Published on 26 Jun, 2025, 7:19 AM IST
Updated on 26 Jun, 2025, 7:19 AM IST
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Tushaar Singh Gill
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A new AI-powered vehicle inspection system in the USA is facing backlash. Its random fees and lack of proper support via chatbot-only systems are frustrating customers, sparking concerns as AI gains traction in the automotive industry.

A new AI-based vehicle inspection system, deployed at car rental company Hertz’s locations in the US, uses advanced scanning to detect damage. Combining cameras and machine learning, it identifies issues like scratches or dents in seconds.

Developed by UVeye, an Israel-based firm, the system employs high-resolution cameras and AI algorithms to scan vehicles before and after rentals. It generates detailed damage reports, displaying issues via a web app with pre- and post-rental images for comparison.

The technology flags even minor damage, such as a 1-inch scuff on a wheel, ensuring precision. Reports are sent to customers’ phones within minutes, streamlining the process compared to manual inspections.

Boon or Bane?

Despite its advertised precision, this system is causing concerns for rental customers in the US. For instance, The Drive reports that one customer faced massive charges for minor wheel damage, including vague “processing” and “administrative” fees. There have been multiple such cases recently.

The report also states that the web app used by Hertz pushes quick payment with discounts, pressuring renters to settle within days.

Customers struggle to contest charges, as the system relies on a chatbot without immediate human support. Contacting agents via email can take up to 10 days, clashing with the seven-day discount window.

Future Implications

The tech supports scalability, with plans to expand to 100 locations in the USA by 2025 end. Its claimed accuracy is touted to disputes, thereby ensuring fairer billing and protecting companies from unnoticed damage.

However, limited access to human support and unclear fee structures raise concerns about fairness. As more firms adopt AI inspections, renters may face similar challenges globally.

AI-driven tech could reshape the car industry, but clearer fee breakdowns and live agent access may be needed to build trust. 

Also read: Bosch Commits Whopping €2.5 Billion To AI Investment By 2027

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