Hertz AI Vehicle Scanning Faces Congressional Review Over Billing Practices
Hertz Global Holdings has been requested to brief the U.S. House Subcommittee on Cybersecurity, Information Technology and Government Innovation regarding its use of AI-driven vehicle scanning technology. The subcommittee's inquiry focuses on how such technologies affect regulatory and procurement practices for federal agencies, especially considering that Hertz is a significant vendor providing rental vehicles to government employees. Hertz partnered with UVeye to deploy an AI-based inspection system that automates the vehicle maintenance process, improving the frequency, accuracy, and efficiency of damage detection across its fleet, which spans over half a million vehicles globally.
The UVeye technology performs detailed scans of vehicles, assessing aspects such as the body, glass, tires, and undercarriage, functioning similarly to an MRI for vehicles. While this innovation aims to enhance transparency and reliability, media reports and customer feedback have raised concerns about the system's billing practices. There are reports of customers receiving significant charges for minor damages detected by the AI scanners without prior human review, and challenges in reaching customer service for dispute resolution. Hertz reportedly issues damage assessments automatically based on AI findings, unlike other rental companies that involve human verification before billing.
The subcommittee's letter emphasizes concerns over Hertz's customer handling processes and questions how the financial assessments are derived from the AI system. It also requests prompt engagement to understand Hertz's plans to ensure equitable benefits from this technology for both large and small customers. Currently, Hertz uses this technology at six U.S. airports and plans rapid expansion to approximately 100 airports nationwide within the year.
This development in AI-driven vehicle inspection takes place against a broader backdrop of digital transformations in auto claims and repair industries, where photo-based damage estimates have grown prevalent. Industry stakeholders like the Washington Independent Collision Repair Association have expressed frustrations with insurer photo estimating practices, highlighting accuracy and communication issues with insurers during claim processing.
The Washington Office of the Insurance Commissioner has reported increased consumer complaints related to claim handling and has proposed rule changes aimed at improving claims processes. This context underscores the regulatory and operational challenges that AI and digital tools introduce into vehicle insurance, rental, and repair sectors. Hertz's case will be instructive for assessing how AI technologies can be integrated with regulatory compliance and customer service requirements in vehicle rental and government contracting environments.