Congress Probes Hertz's AI for Damage Assessments

Published Date : 20/08/2025 

Subcommittee Chair Nancy Mace (R-S.C.) is probing Hertz Global Holdings, Inc.’s use of AI technology to streamline car rental damage assessments, raising questions about federal regulatory responsibilities and consumer fairness. 

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. This technology 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. 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.

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

Frequently Asked Questions (FAQS): 

Q: What is Hertz using AI technology for?

A: Hertz is using AI technology to streamline the process of assessing damage to rental cars. The UVeye scanning technology scans vehicles before and after rental to identify any new damages and ensure fair charges.

Q: How does UVeye technology work?

A: UVeye technology scans vehicles in seconds, comparing before-and-after scans to identify any changes. It provides a post-rental inspection report detailing any damage and associated costs, aiming to make the rental experience faster and more transparent.

Q: Why is this technology being investigated by the Subcommittee?

A: The Subcommittee is investigating Hertz’s use of AI technology to understand its impact on federal regulatory responsibilities and procurement practices, and to address consumer concerns about the fairness and accuracy of damage assessments.

Q: What are some concerns raised by customers?

A: Customers have complained about receiving damage assessments after leaving the rental location and facing difficulties in speaking with Hertz representatives. There are also questions about the financial assessments made by the UVeye system and Hertz’s commitment to these assessments.

Q: How does Hertz’s approach differ from other car rental companies?

A: Hertz is unique in that it issues damage assessments to customers without a human review, while other companies require human staff to review any damage flagged by the scanning system before billing customers. 

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