As millions of Americans get ready to hit the road for Labor Day weekend, some rental car companies are deploying artificial intelligence scanners to look for damage -- and it may lead to more consumers getting dinged.

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Hertz is currently under investigation by Congress regarding its use of artificial intelligence to inspect rental vehicles for damages upon return. The company has implemented AI-powered photo booths at several U.S. airports, which capture high-resolution images before and after rentals to detect any changes. Some customers have reported receiving unexpected repair bills, leading to complaints and concerns about the system's accuracy and fairness.

Consumer advocates have raised questions about the potential for overcharging, while Hertz maintains that the technology increases precision and objectivity in damage assessments. The company states that over 97 percent of rentals show no billable damage. Following media inquiries, Hertz has refunded charges in at least one disputed case and says it is continuing to refine the process. Lawmakers, including Senator Richard Blumenthal, have expressed concern and are seeking further information from Hertz.

Behind the controversial AI tech used to inspect rental vehicles for damages

Hertz once had a slogan that said rent the car, own the memory. Now it's rent the car, own the damage. Congress is investigating Hertz' use of artificial intelligence to check cars for damage after they've been returned. And Chris Van Cleve reports renters are getting dinged with big repair bills. This AI technology spotting damage to rental cars has lawmakers concerned and some customers complaining about surprise bills. AI-powered photo booths snap thousands of high-resolution images before and after rentals to scan for anything that may have happened to the vehicle. I think as a consumer it feels pretty extortive. Adam Foley and his wife rented from Hertz during a family visit to Atlanta. As soon as we landed back in San Antonio on our flight, I started getting automated messages immediately saying that there were damages found on the vehicle and that I owed $80 for two small different dents and then $190 for a processing fee and a total of $350 for what are pretty negligible events that I didn't even detect. Hertz plans to roll the system out widely, currently using it at 10 U.S. airports, but says it is still refining the process. We've seen cases where customers have disputed the damage because they think it's a shadow and not actually a dent or a scratch or a mark. Lindsay Owens is a Washington, D.C.-based consumer advocate. What's wrong with using A.I. to spot damage on the rental car fleet? These technologies can absolutely be deployed for good. They can make things easier for consumers. I think the problem is when these technologies are being used to overcharge customers. Hertz declined our interview requests, but says the system offers precision and objectivity, giving its customers greater confidence that they won't be charged for damage that didn't occur during their rental and more than 97 percent showed no billable damage. We tried it at Phoenix Sky Harbor Airport. Going through the A.I. scanner now as we return the car. Hertz did not proactively notify us the A.I. system was in use. We were only told about it when we asked at the counter. We were not able to view the before images, but did not receive a bill for any damage. As for Adam Foley, who advises companies on using A.I. If you had known what that system was and how it worked beforehand, would that have made a difference? I probably would have picked somewhere else, frankly. I don't want to have to worry about driving behind a truck that kicks up a rock. After CBS News inquired about Foley's case, Hertz waived the $350 in fees, telling us we strive to get it right for every customer. And when we fall short, we work to make it right, adding the refund underscores the progress we've made and the standard we're holding ourselves to moving forward. That was Chris Van Cleve reporting from San Antonio. Democratic Senator Richard Blumenthal told CBS News he is writing to the CEO of Hertz, expressing concerns about how this technology is being used. Stay tuned on that.

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Behind the controversial AI tech used to inspect rental vehicles for damages

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