Thoughtful AI and Automation in Fleet Management

Controversial Tech Inside Rental Fleets

A major rental car player, Hertz (NASDAQ: HTZ) recent rollout of AI-powered damage detection scanners has sparked a number of negative publications and supporting customer frustration. The scanning technology is designed to automate and standardize vehicle inspections, and is now live at major U.S. airports with expansion plans to 100 locations by the end of 2025 (NYT, 2025). While the intent is centered on internal efficiency and external transparency, the real-world impact has received a less than ideal reaction.

Real-World Results Driving Backlash

• Intense Damage Detection: Customers are being billed for extremely minor dings and scratches—sometimes as small as a penny or a one-inch scuff—that would have previously gone unnoticed or been considered normal wear and tear.

• Instant, Automated Billing: The AI system automatically generates damage reports and charges, often including substantial processing and administrative fees. Customers report receiving bills of $190–$440 for minor blemishes, with little recourse to dispute the charges in real time (NYT, 2025).

• Lack of Human Support: Disputing a charge often puts individuals through automated chatbots, with human review only available after delays. Oftentimes – not a great user experience.

An Improvement for Operations or Profit?

The frequency of damage claims has reportedly increased fivefold, leading to accusations that the technology is being used to maximize revenue rather than ensure fairness or accuracy (View from the Wing, 2025). When compared to previous rental experiences or at those from other providers, the difference stands out for customers.

This is a Good Reminder for our Industry

The Hertz controversy is a cautionary tale for the fleet and rental industry. While AI and automation promise benefits for operators looking to update technology, their implementation must be weighed with end-customer trust and experience. A few perspectives we'd like to share for those evaluating a transformation themselves:

1. AI is really great at helping human judgement, not necessarily replacing it. Automated systems leveraging machine learning features should suggest or flag potential issues, but final decisions—especially those impacting customer finances—should require human approval to ensure consistent expectations from before an implementation.

2. Don't under estimate the important of customer support during times of new technology. Individuals should have clear, accessible channels to understand differences in their experience, dispute issues, and view a situation with transparency. Unclear change in process can damage trust and brand loyalty.

3. Improve communication of the benefits to each party involved. Making an upgrade to your fleet systems, whether internal or external facing, should be exciting! Ideally tools with automation and AI are reducing redundant tasks, speeding up assignments, and allowing everyone to 'get the job' done more efficiently. Embracing change is going to be tough with understanding the why behind an organization's decision to adopt new tools.

Our Position on Best Practices for AI and Automation

At Flete, we believe in the transformative power of AI and automation—but only when deployed with a benefits-first mindset. When it comes to our Inspections workflows, we ensure our clients have the opportunity to review every issue flagged by our system. On the service and maintenance side of the Flete platform, each line item on a repair order has the option of being confirmed by a user before being logged into the system. This human-in-the-loop approach enables our clients to build trust with the new system their adopting. If issues do arise, the fleet operator has an understanding of how to accurately respond to their end-customer.

We believe the the Hertz situation underscores the need for thoughtful AI and automation adoption in fleet management. As the industry evolves, companies that prioritize transparency, fairness, and human oversight will earn lasting trust—and set the standard for responsible innovation.

Flete is committed to supporting the industry with fleet AI and automation solutions. If you're interested in learning more, please email me here: hello@getflete.com.

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