Subcommittee on Cybersecurity, Information Technology, and Government Innovation Chair Nancy Mace (R-S.C.) has begun an inquiry into Hertz Global Holdings, Inc.’s use of artificial intelligence technology for assessing car rental damages. The investigation seeks to understand how this technology may affect federal agencies’ regulatory roles and procurement when renting vehicles for official business.
In a letter sent to Gil West, CEO of Hertz Global Holdings, Mace requested a staff briefing about the company’s experience with AI scanning and its expectations regarding consumer benefits.
“According to reports, Hertz now uses UVeye scanning technology at six U.S. airport locations and plans to expand use of the scanners to approximately 100 airport locations this year,” wrote Subcommittee Chair Mace. “Hertz’s summary of how the technology works explains, ‘[y]our vehicle is scanned in seconds, streamlining pick-up and drop-off while giving a clear understanding of the condition of the vehicle. [Digital Vehicle Inspection (DVI)] then compares before-and-after scans to clearly and accurately identify any changes. If damage occurs during your rental, you will receive a post-rental inspection report detailing the damage and any costs associated with it. The result: a faster, more transparent rental experience.’”
The UVeye system is intended to reduce disagreements over car damage by providing automated pre- and post-rental scans that document any new issues acquired during the rental period. This approach aims to improve efficiency and trust between customers and companies by offering clear documentation about vehicle condition.
However, concerns have arisen about Hertz’s process compared with other car rental firms. “Some other car rental companies reportedly use AI as a tool but require human staff to review any damage flagged by the scanning system before billing customers; however, Hertz is apparently the only car rental company in the U.S. that issues damage assessments to customers without human review. Media reports captured some customer complaints questioning why a fully automated process often does not give customers a damage assessment until after they have left a rental location and further questioning why they experienced difficulty in speaking with a Hertz representative within the period of time before Hertz raises its damage assessment fees on customers. It is also unclear how the UVeye system makes financial assessments of damage and Hertz’s record in standing by damage assessments,” concluded Subcommittee Chair Mace.
James Comer currently serves as U.S. Representative for Kentucky's 1st district after replacing Ed Whitfield in 2016. He previously served in the Kentucky House of Representatives from 2001 through 2012 and was born in Carthage, Tennessee in 1972.
