ChatGPT is already in automotive. Rental automotive firms are starting to make use of AI instruments into their techniques and processes to make sure a easy buyer journey. However regardless of the advantages, integrating superior applied sciences equivalent to Synthetic Intelligence (AI), Machine Studying (ML), Neural Networks (NN), and Semantic Search (SS) right into a single platform just like the Generative Pre-trained Transformer (GPT) additionally raises important authorized, moral, and regulatory issues for the automotive rental business.

Adopting GPT expertise in automotive rental processes can create a spread of dilemmas, together with:

• Knowledge privateness
• Regulatory compliance
• Infrastructure vulnerabilities
• Authorized entanglements
• Fraud dangers

For example, the Basic Knowledge Safety Regulation (GDPR) imposes strict necessities on dealing with private information, together with how it’s collected, processed, and saved. Failing to adjust to GDPR provisions can result in important authorized and monetary penalties. Automobile rental firms utilizing GPT expertise additionally could also be topic to information breach notification necessities underneath varied state and federal legal guidelines, such because the California Client Privateness Act (CCPA) and doubtlessly the Well being Insurance coverage Portability and Accountability Act (HIPAA).

Adopting GPT expertise may improve the chance of fraudulent actions, equivalent to identification theft and bank card fraud, which can result in important monetary losses and reputational injury for automotive rental firms.

Automobile rental firms should undertake danger administration methods and implement sturdy safety measures to safeguard in opposition to these potential threats whereas guaranteeing the accountable use of GPT expertise. It’s essential to develop complete insurance policies and procedures to manipulate the usage of GPT expertise and guarantee compliance with relevant authorized and regulatory necessities.

Additionally it is in the most effective curiosity of the business to hunt regulation and laws concerning public-accessible use of AI and associated instruments, equivalent to GPT.

Know the Dangers

Earlier than including AI applied sciences, it’s very important for automotive rental firms to grasp the expertise concerned, the dangers of utilizing this expertise, and the unfavourable outcomes tied to it.

Listed here are the highest dangers and liabilities rental automotive firms can face when utilizing this expertise.

• Car Accidents: Automobile rental firms should guarantee the security of their rental automobiles, together with these which are AI-enabled (California Division of Motor Automobiles, 2023). If an AI-powered rental automotive causes an accident, the rental firm could also be held accountable for any damages or accidents that happen. When an accident is attributable to a malfunctioning AI system, the rental firm could also be held strictly liable, which means they’re answerable for damages no matter fault. One instance of that is the 2018 deadly accident involving an autonomous Uber car in Arizona (Huang v. Uber Applied sciences Inc., 18-cv-01396 (N.D. Cal. Mar. 29, 2019). Whereas Uber was not a automotive rental firm, the incident highlights the potential legal responsibility dangers that come up when AI techniques trigger accidents. See additionally Property of Herzberg v. Rafaela Vasquez et al., 2:18-cv-00912 (D. Ariz. filed Mar. 5, 2019).
• Knowledge Privateness and Safety: AI techniques depend on information to operate correctly, which raises issues about information privateness and safety. Automobile rental firms should be sure that any information collected by AI techniques is protected underneath related legal guidelines and laws, such because the Basic Knowledge Safety Regulation (GDPR) within the European Union. Failure to adjust to these laws can result in important fines and reputational injury.
• Malfunctioning AI: AI techniques can malfunction or fail, resulting in doubtlessly harmful conditions. Automobile rental firms have an obligation to make sure their AI techniques operate correctly and are recurrently maintained. Failure to take action may make the corporate accountable for any accidents or accidents that happen due to a malfunctioning AI system.
• Regulatory Compliance: As AI use in transportation grows, new laws could also be launched to manipulate its use. Automobile rental firms should keep updated with any regulatory adjustments and guarantee their AI techniques adjust to related legal guidelines and laws. For instance, in america, the Nationwide Freeway Visitors Security Administration (NHTSA) has issued steering on the testing and deployment of autonomous automobiles, which incorporates rental automobiles.
• Status Harm: If an AI-powered rental automotive is concerned in an accident or malfunctions, it could injury the rental automotive firm’s fame. This might result in lack of enterprise and unfavourable publicity. Automobile rental firms have an obligation to make sure their automobiles and AI techniques are secure and dependable.
• Buyer Dissatisfaction: If AI techniques don’t operate as anticipated, it may trigger buyer dissatisfaction. This might result in unfavourable opinions and lack of enterprise. Automobile rental firms should guarantee AI techniques are user-friendly and meet buyer expectations.
• Elevated Upkeep Prices: AI techniques require common upkeep and updates, which could be expensive for automotive rental firms. Failing to take care of AI techniques correctly may result in malfunctions or accidents. Automobile rental firms should guarantee they’ve the assets to examine and preserve AI techniques .
• Technical Experience: Automobile rental firms want the technical experience to implement and preserve AI techniques. If the corporate lacks this experience, it might want to rent extra workers or outsource the work, which could be costly. Automobile rental firms should guarantee they’ve the assets and experience to implement and preserve their AI techniques correctly.  

The dangers and liabilities earlier than rental automotive businesses using user-enabled AI applied sciences are nice. One danger warranting better consideration is cybersecurity. Half II on this article collection will study the cybersecurity danger of utilizing AI expertise and the way rental automotive businesses can defend techniques in opposition to breaches.

Carlos Bazan is a enterprise strategist centered on operational and compliance subjects within the automotive rental business.