Lawmakers Seek Clarification from Hertz Regarding AI System for Rental Damage Claims | Carscoops

      Hertz is currently facing a government investigation due to its use of AI for billing renters without any human oversight, raising issues of fairness and accountability.

      A House committee is scrutinizing Hertz’s AI-based car damage assessment system, noting that it may be the only major rental company in the U.S. that issues charges without human review. Lawmakers are seeking clarification on matters of fairness, transparency, and the overall federal implications.

      Recently, Hertz has received criticism for its AI-powered damage detection technology. The company claims this system helps prevent inaccurate charges for damages, while customers argue that it is overly sensitive or makes incorrect evaluations. This has caught the attention of Congress, with the House Oversight Committee demanding thorough explanations on how the system operates.

      Hertz has collaborated with an Israeli technology firm, UVeye, to utilize scanners that capture a full 360-degree image of vehicles during pick-up and drop-off. While Hertz claims to strive for objectivity in assessing damages, it has not clarified whether it repairs the damages for which it charges renters.

      Renters sometimes argue that the damages identified by UVeye are nonexistent. The primary concern, however, is the absence of human involvement once the system indicates damage, a worry echoed by the House Oversight Committee.

      Lawmakers Share Their Concerns

      In a correspondence addressed to Hertz CEO Gil West, Subcommittee Chair Nancy Mace (R-S.C.) pointed out that while some rental companies employ AI in their processes, they still have human staff review any flagged damages prior to billing; Hertz, on the other hand, appears to be the only U.S. rental firm that provides damage assessments without human verification.

      The committee is demanding a comprehensive overview of how the system functions, including how UVeye determines damages, how frequently Hertz resolves disputed cases, and why customers find it difficult to contact a human representative.

      Why the Congressional Interest?

      Hertz's CEO has been given until August 27 to respond. The government’s involvement stems from the fact that this situation impacts both public and private sectors.

      The House Oversight Committee prioritizes issues related to cybersecurity, information technology, and government innovation. While it acknowledges the potential advantages of an objective AI system, it also aims to ensure that all customers "benefit from the adoption of this new technology."

      With growing public complaints and the interest of lawmakers, Hertz will soon need to clarify the practical operation of its system beyond just theoretical claims.