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As some rental car companies implement artificial intelligence (AI), drivers say the technology is driving up unfair charges. Customers across the country are claiming they’re being charged hundreds of dollars in damage fees—sometimes weeks after returning their rentals—for minor or even nonexistent damage. Massachusetts resident Ellen Connor was one of the customers who was hit with hundreds of dollars in damage she says she didn’t cause. “I am always willing to pay for damage if I’ve done it, but they did not prove any of it,” Connor said. She rented a Mercedes to drive along the West Coast with her son this summer. “It was the nicest car I’ve ever driven, and it was great,” Connor said. What wasn’t great were the bills she got after the trip. The rental car company charged her over a thousand dollars in damages. Connor was shocked. She said nothing happened while she was driving and the videos she took when returning the car showed no damage. “I had taken such good care of the car,” she said. “I always parked it very carefully. I would kind of walk around it every day and inspect it.” The company said photos taken by their AI system proved otherwise. Connor was charged for a scratch on a rear door, a mark on a tire and a damaged front bumper. But, Connor said, the photos the company provided didn’t prove there was damage. “I still couldn’t see it,” she said. “I wrote back and said I don’t see any evidence of damage.” Rental car companies nationwide are rolling out new AI-powered inspection systems that resemble drive-through gates. As customers rent and return their cars, the systems capture images from multiple angles and use artificial intelligence to evaluate any potential damage. Companies claim the technology make the damage inspection process more efficient, objective and transparent, but some drivers claim it is making mistakes. Michael Audette was charged over $300 after renting a car in Florida. Like Connor, the photos the company provided as proof showed no signs of rim damage. “I’m like, what am I looking at? I don’t see anything,” Audette said. “It’s just shocking because I’m like, how am I getting a bill when the guy told me I’m good?” Ashley Davis was initially charged $250 for a small scratch on a tire rim, and the price kept increasing. “It goes from $250 to $350 to $450, and we are at almost $500 for this ‘scratch’ on my wheel,” Davis said. Her attempts to dispute the damage were unsuccessful. “You can’t get a hold of anybody. There’s no actual customer service number that you can call. You can only send an email request in,” Davis said. These AI scanners are now at the Logan Airport, so 7 Investigates rented a car and put the scanner to the test. The car had a few marks on it to start, but the system didn’t detect anything new, and days later, we weren’t charged any extra cost. While the AI passed our test, experts said this technology still needs a human touch, and there needs to be a process for customers to dispute the damages. “If you use the technology without actually allowing the person to intervene or say their bit, that can be really problematic and can actually cause more problems than it is worth because these things are not very accurate. They will make the errors,” explained Usama Fayyad, Northeastern Senior Vice Provost for AI. Fayyad said he believes AI technology can be trusted if humans supervise it, but emphasizes that how businesses utilize AI is key. “Yes, the technology is great at speeding up responses and tasks, but without the human intervention and the human supervision, it is going to make some really horrible user experiences,” Fayyad said. Drivers who spoke with 7 Investigates said that’s exactly what happened to them. Audette was able to get the company to drop its charges, but remains concerned about others who are billed. “How many people are they doing it to who just paid it because they just don’t want to be bothered?” Audette questioned. Connor’s insurance company paid for her damages and Davis ended up paying out of pocket. “I would have rather seen a better outcome. I didn’t have a choice,” Davis said. Connor said she is more hesitant to rent a car again. “It stinks because it is going to make consumers have to bear even more of the burden of being super careful or being taken for extra money when they don’t deserve to be charged,” Connor said. The companies that utilize these scanners said humans are involved either in the decisions process or the dispute process. They further emphasize there are ways for customers to reach out and dispute claims. One rental car company said of the one million cars scanned, 97% had no billable damage. Ben Winters is the director of AI and Privacy at Consumer Federation of America. He said that as this technology increases in the rental car industry and other industries, companies need to be transparent about how it is being used. “This is just one example of an industry adding a layer of AI technology that makes it harder for problems to get solved while maximizing fees charged by the company,” Winters said. “It is something that people are going to continue to see.” When it comes to rental cars, Winters advises consumers to be aware of which companies utilize this technology. If drivers do rent from companies that use AI, experts recommend still taking their own before and after photos. Winters said if consumers do get charged, they should get in touch with the company immediately and get their credit card company involved if they paid with a card. (Copyright (c) 2025 Sunbeam Television. 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