• A House panel questions Hertz’s AI-powered car damage assessment system.
  • Hertz is allegedly the only major U.S. rental firm billing without human review.
  • The lawmakers demand answers on fairness, transparency, and federal impact.

It’s no secret that Hertz has been under fire recently for its AI-powered damage scanner. The company says it helps them avoid charging the wrong person for damages. Customers complain that the system is too picky or gets things wrong altogether. The situation is now drawing the attention of Washington. A House Oversight committee wants detailed explanations about how the system work.

More: Hertz AI Complaints Are Spreading Faster Than The Damage It Flags

The rental company partnered with Israeli tech company UVeye to use scanners that take a complete 360-degree picture of a car when it leaves and returns. Hertz says it’s trying to be objective about damages, but hasn’t answered our questions about whether it fixes the damage it charges customers for or not.

Renters sometimes say the damage UVeye picks up isn’t even real. The biggest issue, though, seems to be the lack of human engagement after the system flags damage. The House Oversight Committee has the exact same concern.

Lawmakers Weigh In

In a letter to Hertz CEO Gil West, Subcommittee Chair Nancy Mace (R-S.C.) writes: “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.”

The committee requires a full rundown about how the system works. It specifically asked how UVeye makes damage assessments, how often Hertz upholds disputed cases and why customers are complaining about an inability to speak with a human more easily.

Why Congress Cares

It has given Hertz’s CEO until August 27 to respond. Why would the government get involved at all? The answer is simple: the situation affects both the public and private sectors.

The House Oversight Committee focuses on cybersecurity, information technology, and government innovation. It recognizes the potential benefits of an AI system like this that can be objective. At the same time, it wants to be sure that all customers “benefit from the implementation of this new technology.”

With public complaints piling up and lawmakers now involved, Hertz will soon have to clarify how its system works in practice, not just in theory.

Photo UVeye | H/T to The Hill