Subcommittee requests briefing from Hertz on AI scanning technology
Hertz Global Holdings has been asked to provide a briefing on its AI scanning technology to the U.S. House Subcommittee on Cybersecurity, Information Technology and Government Innovation, according to an Aug. 20 letter sent by Chairwoman Nancy Mace.
The letter requests that the briefing occur as soon as possible, but no later than Aug. 27.
It notes that the subcommittee is conducting oversight of new uses for AI technologies that may impact the regulatory and procurement practices of federal agencies for employees renting cars for official business.
Hertz announced in April that it was partnering with UVeye to transform its vehicle maintenance process.
“With more than half a million vehicles around the globe, keeping vehicles in well-maintained condition before, during, and after rentals is a critical priority for Hertz,” the company’s press release says. “Vehicle assessments in the rental industry have always relied heavily on manual inspections conducted in varying conditions. By implementing UVeye’s advanced AI-driven inspection technology, Hertz can significantly enhance the frequency, accuracy, and efficiency of its vehicle maintenance processes, ensuring reliable service, improved vehicle availability, and transparency for its customers.”
It says that UVeye performs automated inspections of a vehicle’s body, glass, tires, and undercarriage.
The technology is described as an MRI for vehicles.
Car and Driver reported that the drive-through scanners are used to inspect vehicles before and after a rental period. The news article claims a reader shared an experience with the technology that resulted in a $440 bill for a 1-inch scrape on the wheel of a Volkswagen.
The bill included $250 for the repair, $125 for processing, and a $65 administrative fee, the article says. The customer attempted to inquire about the charges, and the company’s chatbot system wouldn’t connect them to a human agent, the article says.
According to the article, it could take up to 10 days for Hertz to respond to chatbot requests. This makes it difficult for consumers who are given a discount if the bill is paid in two days and a smaller discount if it is paid within the week.
Mace’s letter states the subcommittee seeks the company’s cooperation in understanding Hertz’s plans to ensure that large and small customers benefit from the implementation of the new technology.
The letter adds that, according to reports, the company uses the scanning technology at six U.S. airports and plans to expand to about 100 airports this year.
According to the letter, other rental companies use AI as a tool, but the process requires human staff to review any damage flagged by the scanning system before billing customers. It says Hertz is the only rental company that issues damage assessments to customers without human review.
The letter notes media reports about customers receiving bills after leaving Hertz locations and having difficulty speaking with a representative after receiving a bill.
“It is also unclear how the UVeye system makes financial assessments of damage and Hertz’s record in standing by damage assessments,” the letter says.
The subcommittee asks that a “staff-level” briefing be held to discuss Hertz’s expectations for how the technology will benefit its customers, and how the use of AI scanning may impact Hertz’s work as a vendor to the federal government.
In recent years, collision repair industry professionals have expressed frustrations about insurance company photo estimating practices that have, at times, removed in-person estimates altogether.
During a July 2023 workshop, the Washington Independent Collision Repair Association (WICRA) presented the results of a survey of its members on the business impact of photo estimating to the Washington Office of the Insurance Commissioner (OIC).
On average, the 30 independent shop representatives that responded said they received more than 1,000 photo estimates at their businesses each month. About 93% of auto claims were settled solely on the insurer’s review of photos.
Eighty percent of the shops said none of the photo estimates they reviewed were accurate.
Seventy percent of shops said they had to resubmit information to the insurer multiple times before receiving a response or payment.
The OIC also previously reported a historic volume of complaints since 2021, according to a trends report released in July 2023.
Last month, the OIC proposed claim handling rule changes, noting that an uptick in consumer complaints in recent years was the motivation behind the changes.
Amir Hever, UVeye CEO and co-founder, presented during the SCRS IDEAS Collide Showcase in 2018.
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Image courtesy of UVeye