Mace Investigates Use of Artificial Intelligence for Car Rental Damage Assessments

WASHINGTON-Subcommittee on Cybersecurity, Information Technology, and Government Innovation Chair Nancy Mace (R-S.C.) is investigating Hertz Global Holdings, Inc.'s use of new artificial intelligence (AI) technology that potentially impacts federal agencies' regulatory responsibilities and procurement practices for renting cars for official business. In a letter to Gil West, Chief Executive Officer of Hertz Global Holdings, Inc., Subcommittee Chair Mace requests a staff briefing to better understand Hertz's experience as an early adopter of AI scanning technology and the company's expectations of how this technology will benefit consumers.

"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.'"

UVeye's technology is designed to reduce disputes over damages to rental cars by scanning them pre- and post- rental to identify any new damages acquired during the rental period and ensure customers are being charged fairly. While the goal of this new AI technology is to enhance operational efficiency and strengthen consumer trust in the quality and condition of rented vehicles, Hertz's implementation of the technology raises questions for customers, including the federal government.

"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.

Read the letter to Hertz Global Holdings, Inc. here.