Hertz Uses AI for Car Checks Amid Scrutiny and Disputes

Hertz has introduced AI-powered vehicle inspection systems at 10 US airports and plans to expand to 100 locations by the end of 2025. Developed by Israel-based UVeye, the technology uses high-resolution cameras and machine learning to scan a vehicle’s body, glass, tires, and undercarriage for damage and maintenance issues. 

More than 675,000 vehicles have been scanned, with over 97% resulting in no billable damage. However, concerns have arisen because the system operates without human supervision. 

Hertz said the system aims to eliminate inconsistencies in manual inspections. “With digital vehicle inspections, we're introducing much-needed precision, objectivity, and transparency,” the company told CBS News. The automation is intended to provide clearer and more reliable assessments, reducing disputes. Hertz described the manual process as “subjective and inconsistent.”

Some customers, however, have disputed  AI-flagged charges. Adam Foley, after returning a rental in Atlanta to San Antonio, received automated messages claiming US$80 for dents and US$190 in processing fees. “A total of US$350 for negligible events I did not even notice,” he said. After going public, Hertz waived the fees, stating, “We strive to get it right for every customer—and when we fall short, we work to make it right.”

US lawmakers are scrutinizing Hertz’s automated process. Senator Richard Blumenthal (D-CT) requested transparency on how damage is assessed and whether charges are reasonable. Representative Nancy Mace (R-SC), chair of the Subcommittee on Cybersecurity, Information Technology, and Government Innovation, noted that “Hertz is apparently the only car rental company in the United States that issues damage assessments to customers without human review.”

Consumer advocates have voiced similar concerns. Lindsay Owens, a Washington, D.C.-based policy expert, said, “The problem is when these technologies are used to overcharge customers,” while acknowledging AI’s benefits and emphasizing the need for transparency and oversight.

Other rental companies are taking a more cautious approach. Sixt uses UVeye scanners with manual review before billing; Avis maintains human-led inspections despite prior AI testing; Enterprise Mobility does not use AI.

UVeye said its system can be customized to client needs and aims to reduce confusion while improving accuracy.The technology is deployed across dealerships, service centers, and rental locations, scanning millions of vehicles monthly. Yet CBS News found Hertz did not proactively inform customers of the AI system during a test rental, and images were only shown if requested.

As AI inspection systems like UVeye and ProovStation enter the rental market, some startups offer alternatives giving customers greater control. Mobile apps allow users to document vehicle conditions with photos and videos, creating timestamped digital records before and after rental.