Generative AI will take a leading role at the International Car Rental Show, May 13-15, given how its presence and influence have seeped across most sectors of the economy since 2022.

Car rental is no exception, as AI stands to rework the traditional interactions between providers and renters. The typical rental car counter at and near airports will no longer serve as the fulcrum of operations.

I recently asked Car Trawler’s chief revenue officer, Gavin Sweeney, to elaborate on a survey of 1,000 Americans who had previously used AI-driven tools for trip planning and rental car reservations.

Car Trawler is a B2B travel technology company based in Dublin, Ireland, that connects airlines, hotels, and travel-related businesses with car rentals, private transportation, and ride-hailing services.

Survey Shows Mixed AI Views

The survey found that, specifically in the car rental category, 30% of respondents used AI to research cars or transfers. Among this group, 67% reported a positive experience, citing clearer price comparisons and simpler vehicle selection as key benefits.

But only 8% said they preferred automated tools for completing a car rental booking, with concerns about payments and data security emerging as the main barriers.

The results suggest that while travelers readily embrace AI guidance during research and planning, many still seek traditional or hybrid booking paths when it’s time to pay for their trips.

Looking at the demographics of the most likely AI users, most are Millennials and Gen Zers, as well as younger families with children under 18. They not only use AI to research car rentals but also follow through with it to book a car.

AI Adoption and Potential

In considering how well car rental companies are adopting AI relative to their growth potential, Sweeney said that while AI adoption is advancing steadily, it is still in the early stages of a broader transformation.

Car renters overall appear to hesitate to use AI for complex needs such as requesting a refund, changing a flight, or catching a connecting flight.

“AI will play a significant role in car rental booking behavior in the short and long term, and travel brands should explore customer-centric ways to integrate AI into their booking processes,” Sweeney said.

The most common uses of AI now among rental car companies and their customers, according to Sweeney include:

• AI can save time by helping users compare prices and narrow down vehicle types.

• Helping operators deliver more responsive, data-driven experiences by supporting automation.

• Strengthen features such as dynamic pricing by using AI to adjust rates based on demand and personal preferences.

“The common thread is efficiency: customers want clarity, and rental providers want sharper insight; AI supports both,” Sweeney said.

Younger Renters Set Expectations

AI usage trends show younger generations leading the way.

Their behavior reflects a high degree of comfort with digital tools and signals where the market is headed, Sweeney said.

“As these cohorts become an even larger share of travelers, expectations around personalization, real-time guidance, and seamless digital workflows will only intensify,” he said.

Rental companies must accelerate investment in AI capabilities that meet younger travelers where they already are, he added.

Balancing AI and Staffing

While AI is poised to take on more roles and routines in a car rental operation, humans will always need to fill the gaps and oversee the applications.

The survey showed a lean toward a traditional approach to financial information and personal data among respondents, indicating that rental fleet operations must build trust as they implement AI.

“Payment security and fraud concerns were the top reasons respondents hesitated to let AI complete a rental booking,” Sweeney said. “For rental companies, the optimal model is hybrid: AI handles the heavy lifting in research, prediction, pricing, comparison, and planning efficiency, while people step in where trust, nuance, and accountability matter most.”

ICRS will explore these emerging AI realities in more detail for rental car companies. 

The industry faces an inflection point in the next few years as AI accelerates across the economy, and customer expectations will compound far faster than during the mass adoption of the internet.