AI Makes New Strides In Automating Car Rental Services

Artificial intelligence is making new strides in automating the car rental market, according to recent reports. The technology appears to be accelerating at an increasing rate, allowing it to overcome some of the issues and obstacles that prevented the technology from becoming mainstream earlier. 

Part of this development comes down to predictive fleet management in rental companies themselves. The technology is better able to optimise fleet availability compared to prior technologies, allowing rental companies to better allocate resources and determine the number of vehicles they need to keep on hand to be successful. 

“The development is useful for companies in this industry,” says MPH Club, an exotic car rental firm. “It reduces downtime and prevents overbooking, which can be a massive headache for customers. Many firms are able to increase fleet utilisation above baseline by over 15%, which is a massive increase on baseline.”

However, that’s not the story around AI in this industry. It is also making its way into other nooks and crannies, adjusting how fleet managers operate. 

For example, AI is automating time-consuming vehicle inspections, something that used to take up hours of time. AI-driven apps can scan vehicles for damage in seconds, reducing the need for manual checks and improving accuracy. AIs can tell pretty quickly whether there is damage to the vehicle compared to before it left the forecourt, and machine vision is often better than human, meaning that these systems can detect damage that might otherwise appear hidden, such as indentations or scuffs that are challenging to see with the naked eye. 

“These technologies have the potential to make hire companies much more efficient, allowing them to cut inspection times by more than 50%,” MPH Club says. “It’s a critical element of what they’re doing, and they can generate reports immediately. Furthermore, the technology lets these companies be fairer to customers. If AIs are more accurate than human inspectors, then it means that they can benefit from a truer inspection of their vehicles and don’t have to rely so much on other people who could be biased.”

All of this new technology is also feeding into increased personalization of the customer experience. AIs are getting better at analysing customers data overall, allowing them to select more refined services that better meet their requirements. 

For example, AI is now able to analyse past customer data to detect patterns in preferences that might indicate which vehicle they need to hire next. These systems can also make tailored vehicle recommendations based on this information, making it clearer and more straightforward what the individual should choose. 

Interestingly, this AI-generated customer service is already finding its way into some of the large rental firms. For example, users can now swap cars and split bills, increasing the usability of services considerably. They can also upload their travel habits for fairer pricing and excess requirements, which is encouraging more people to take part and enjoy the industry. 

Whether AI will be used for pricing remains to be seen. However, even current technology could allow it to happen. For example, it’s feasible that AI algorithms could adjust rental rates based on market conditions, reducing the requirement for staff to do it manually. These systems could also take things like demand spikes and competitor pricing into account, allowing companies to raise their margins opportunistically. 

“Companies using these systems have seen a significant increase in their revenues,” says MPH Club. “But it isn’t just about margins: getting the price right also helps consumers. It means that there are always opportunities to grab a bargain and hire a rental car when the price is rock bottom.”

Whether AI will make rental fleets fully autonomous, though, is a work in progress. Companies are already making strides in this area, but there are serious challenges and pushback from governments and communities. 

“At MPH Club, we like the idea that people actually drive their vehicles,” the brand explains. “For us, it’s all part of the fun.”

However, it’s not just an aesthetic issue. It’s also a matter of safety. While AI systems can navigate most roads, most of the time, they aren’t able to adapt to challenging situations in the way a person can. 

Training data doesn’t appear to be sufficient to get around this problem. There will always be a new set of variables that the car’s computer hasn’t seen and, therefore, prevents it from taking the most appropriate action. 

Image Credit: Pexels

However, there may be the possibility that vehicles are able to learn outside of their training sets through inference and reason. This state-of-the-art approach is still in development, but it could emerge as soon as this year, perhaps finally breaking through the barrier that prevents full self-driving for hire vehicles. 

“When you combine this development with seamless chatbot booking, you’re left wondering what there will be left for humans to do,” MPH Club explains. “We can already see the direction the industry is going.”

Chatbots are essentially performing clerical functions to a high level, around the clock, and without training issues. Many are now able to talk to customers over the phone naturally, allowing them to converse without interruptions with the person on the other end of the line and fully understand what they mean. 

The technology is so good that it can comprehend garbled words and unusual accents. It can correct for things like phone line crackle and piece together what someone’s saying from odd fragments that it might hear here and there, making it an even more impressive and useful tool for customers who might feel frustrated. 

Industry estimates suggest that around 85% of customer interactions with hire companies are now automable. That figure looks set to continue rising and could reach a critical point soon where humans aren’t required to be a part of the loop (though some brands might keep them on). 

Ultimately, AI will transform the car rental business. However, while it might lower prices, it shouldn’t take away the fun of driving, especially for those who want to experience it in all its glory.

(Disclaimer: Devdiscourse's journalists were not involved in the production of this article. The facts and opinions appearing in the article do not reflect the views of Devdiscourse and Devdiscourse does not claim any responsibility for the same.)