Fleet Safety is Evolving: How Telematics and AI Are Changing Fleet Risk

Author, Rory Anderson, Partner, Account Executive, Rancho Mesa Insurance Services, Inc.

Fleet safety technology is rapidly shifting from reactive to proactive. Modern telematics and artificial intelligence (AI) tools now give companies real-time visibility into driver behavior, helping identify and correct risky habits before they turn into accidents.

I recently attended a webinar titled Telematics, AI & the Future of Fleet Risk hosted by the Insurance Journal, and one of the biggest takeaways was that many companies are seeing immediate value from these tools through reduced claims, improved driver performance, and better operational efficiency which all lead to greater returns on revenue-generating assets like the company’s fleet of vehicles.

Interestingly, many organizations initially implement telematics for safety reasons, but quickly discover benefits across multiple areas of the business. In addition to improving fleet safety, which ultimately leads to fewer out-of-service vehicles, companies often report:

• Reduced fuel costs

• Improved maintenance tracking

• Better workflow efficiency

• Greater asset (vehicle) utilization

One analogy from the webinar stood out to me. The speaker compared drivers to professional athletes reviewing game film. Just as athletes use video to improve performance, drivers can now use dash cameras and AI insights to improve driving habits through more personalized coaching.

Of course, implementation is not without challenges. Employee buy-in is often the biggest hurdle, particularly when drivers feel the technology creates a “big brother” environment. Transparency is critical. Companies that clearly explain what the system tracks, how the data is used, and why it is being implemented typically see much stronger adoption.

Another challenge is information overload. Many organizations are surprised by the amount of data available when they first launch a telematics platform. A gradual rollout focused on a few key metrics at a time often leads to the best results.

There was also strong discussion around the impact telematics and AI are having on claims and litigation. Dash camera footage and telematics data can help piece together accidents more accurately, improve claim investigations, and provide objective evidence during litigation. In many cases, these tools help reduce the total cost of risk while improving defensibility.

Fleet technology continues to evolve quickly, and while telematics is not a replacement for a strong safety culture, it is becoming an increasingly valuable tool for contractors looking to improve safety, reduce losses, operate more efficiently, and improve return on assets.

To learn more about how telematics and AI tools can help your company manage risk, contact me at randerson@ranchomesa.com or (619) 486-6437.

New AI Regulations for California Employers

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

On October 1, 2025 California employers with five or more employees will be required to follow new Artificial Intelligence (AI) regulations.

The amended regulations address the use of automated-decision systems (ADSs) in employee or prospective-hire evaluations, applying existing antidiscrimination laws to new AI technologies.

 Automated-Decision Systems

Employers will be required to comply with the state’s existing antidiscrimination laws when using an ADS. For work-related purposes, an ADS is defined as any computational process that makes or supports employment decision-making, including hiring, promotion, or termination. An ADS may use artificial intelligence, algorithms, or other types of data processing to: 

• Screen, evaluate, or make predictive assessments about applicants or employees, including their skills, abilities, personality or cultural fit.

• Share job advertisements or recruiting materials to certain groups.

• Screen resumes for key terms.

• Analyze observable traits from online interviews, including facial expressions, word choice, or tone of voice.

• Analyze third party data.

Accommodations

Improper use of ADS can lead to discrimination based on disability or religious creed. Individuals with disabilities could be placed at an unfair disadvantage if an ADS evaluates physical abilities or cognitive traits. An applicant’s or employee’s religious beliefs or practice could also conflict with the screening process used by an ADS. Employers should consider whether reasonable accommodations are required in either case before making a decision based on an ADS.

Recordkeeping

Data collected from an automated-decision system must be retained by employers for four years from the date the record was created or the date of the action taken as a result of the ADS, whichever is later.

To ensure your business is compliant with the new regulations, there are a few steps you can take.

1. Retain ADS data for at least four years.

2. Ensure HR and managers are aware of what accommodations for a disability or religious beliefs might be required, when using an ADS in employment decisions.

Resources for staying up-to-date with state and federal laws can be accessed through Rancho Mesa’s RM365 HRAdvantage™ portal. Rancho Mesa’s HR experts are also available for clients to answer specific questions about the new regulations and how they could impact your business through the HR portal.