How Self-Driving Cars Work: Technology, Safety and Levels Explained

When we think about self-driving cars, we often imagine vehicles that take us from A to B without human intervention, but what makes a vehicle truly autonomous? Our expert explains.

Written by Manuel Silverio
self-driving car image of a person in a theoretical rendering of a self-driving car reading a book
Image: Shutterstock / Built In
Brand Studio Logo
UPDATED BY
Abel Rodriguez | Jun 10, 2026
REVIEWED BY
Ellen Glover | Jun 10, 2026
Summary: Self-driving cars are moving from concept to real-world use in robotaxis, trucking, delivery and farming, using AI, sensors and HD maps to navigate. While they promise safer, more accessible transportation, challenges remain around weather, liability, cybersecurity and public trust.

From daily commute to weekend errands, cars remain the backbone of transportation for millions of people. But for decades, autonomous vehicles have been promised as the solution to traffic jams, accidents and the fatigue of long drives. While that promise is beginning to materialize, true autonomy remains limited. 

The automotive industry classifies driving automation into six distinct tiers, ranging from Level 0, which requires complete human control, to Level 5, which involves no human intervention under any conditions. Most commercially available self-driving vehicles today operate only at Level 2 or Level 3. They can steer, brake and accelerate independently, but they still require an attentive human driver ready to intervene. Although Level 5 autonomy remains the ultimate industry goal, current limitations in artificial intelligence, software reliability and sensor technology mean that reality is still a distant prospect.

Do Self-Driving Cars Actually Exist?

Yes, self-driving cars with varying levels of automation are available to consumers. Some companies have even begun offering more advanced self-driving capabilities through autonomous riding-hailing, or robotaxi, services.

Related ReadingArtificial Intelligence in Cars: Examples of AI in the Auto Industry

 

How Do Self-Driving Cars Work?

The main goal of self-driving cars is to get from point A to point B safely. To do this, they use a combination of sensors, onboard computing and machine learning systems trained on vast amounts of driving and road data. These systems then continuously interpret lane markers, traffic signals, other vehicles, cyclists and pedestrians so the car can make driving decisions in real time. 

Below are some of the key hardware components and software systems that enable autonomous driving. 

Radar and LiDAR

Radar is a sensor that uses radio waves to detect close objects, whereas LiDAR uses light waves to detect objects that are further away with great precision. That said, since LiDAR uses light waves, it can be susceptible to fog, whereas radar is not. In addition, self-driving cars use video cameras to detect and track traffic lights, road signs and pedestrians.

GPS

GPS provides a precise geographic location of the vehicle (longitude, latitude and elevation), which can be fine-tuned when combined with the input from all other sensors. GPS sensors don’t tend to work well in tunnels, nevertheless a self-driving car can compensate for this with input from other sensors.

Ultrasonic Sensors

Self-driving cars also use ultrasonic sensors for close-range object detection. Ultrasonic sensors are cost effective and aren’t negatively affected by environmental factors. On the other hand, they have low resolution and a very close range. These sensors are typically used for collision avoidance, parking assistance and blindspot monitoring.

HD Map

Self-driving cars use all the input from their sensors to locate themselves within an HD map and generate a route toward a destination. HD maps contain much more data than a regular GPS maps. They essentially act as digital twins to real-world road networks, providing both geometric and semantic data that help autonomous vehicles navigate safely. 

The geometric layer includes highly detailed 3D representations of buildings, road lanes, intersections and crosswalks. The semantic layer adds context to those physical features, supplying information such as speed limits, traffic rules, lane restrictions and how vehicles are permitted to move through specific intersections.

Computer Vision

While the hardware sensors gather raw data, the car requires video cameras combined with computer vision software to actually see and understand the world. Computer vision uses advanced machine learning to analyze raw camera pixels in real-time, allowing the car to classify objects, such as differentiating a pedestrian from a trash can, track their movement and read traffic lights and road signs.

Machine Leaning Model

The machine learning model acts as the central brain that processes this information to make split-second driving decisions. By analyzing past training data alongside real-time inputs from the HD map, LiDAR and cameras, the model predicts how surrounding objects and pedestrians will behave. It then instantly calculates the safest path forward and sends physical commands to the car’s steering, brakes and accelerator. Ultimately, this model is what turns raw environmental awareness into safe, autonomous driving behavior. 

More From Manuel SilverioWhat Is a Smart Device?

 

Are Self-Driving Cars Safe?

Many experts believe self-driving cars have the potential to be safer than human-driven vehicles — and early data appears to support that view. One comparative study comparing crash data from Waymo’s autonomous vehicles with that of human drivers found significantly fewer collisions among the self-driving fleet. According to the study, Waymo’s Level 4 automated driving system (ADS) experienced 96 percent fewer reported crashes overall and 91 percent fewer crashes involving airbag deployment than human drivers operating over a comparable number of miles. 

However, autonomous vehicles do not outperform humans in every scenario. Researchers at the University of Central Florida (UCF) found that human drivers still have an advantage in certain conditions, including driving at dawn or dusk, as well as making turns, where self-driving systems may face extra challenges. 

Public opinion of autonomous vehicles is also complicated. Users expect self-driving cars to be as close to perfection as possible. And when companies like Waymo and Tesla become involved in accidents, we get a reminder that, despite wanting autonomous vehicles to never become involved in an accident, that’s almost statistically impossible, especially when they share the road with human drivers. 

This public skepticism is regularly renewed by highly visible failures that highlight structural blind spots in autonomous logic across the entire industry. For example, Waymo had to issue a massive recall of 3,800 robotaxis after multiple driverless vehicles erroneously drove straight into deep flash floods. Similarly, General Motors halted its Cruise robotaxi program after a vehicle failed to detect and struck a pedestrian, while Tesla’s robotaxis fleet logged a number of collisions in its first months due to basic errors like backing into poles and misjudging stationary buses. These real-world errors show that, while autonomous technology may be statistically safer on paper, it still struggles with unexpected environmental edge cases that humans can navigate using basic common sense.

How Do Self-Driving Cars See? | Video: Ted-Ed

 

Components of a Self-Driving Car

We can identify three core components that make a vehicle autonomous: a high-definition map (HD Map), a state and geolocation estimator and a motion manager.

1. HD Map (High-Definition Map)

The very first thing a self-driving car needs is the ability to detect its location in the world. To achieve this, an autonomous vehicle needs to have an HD map that includes plenty of data about the road and the surroundings.

HD maps help with the management of lateral, longitudinal and speed control; these three aspects of autonomous driving allow the car to regulate speed as well as change lanes safely. Thanks to HD maps, self-driving cars always know in which lane they are located throughout an established route, which includes all necessary lane changes they will eventually need. 

There are specific companies who dedicate their efforts to create and maintain their HD maps. One good example is TomTom, which offers the TomTom HD Map. TomTom’s proprietary HD Map offers accuracy down to a few centimeters and helps sensors understand their surroundings.

More on Self-Driving Cars and TrucksWhat Is Autonomous Trucking?

2. State and Geolocation Estimator

State estimators coordinate the input from all the sensors in the autonomous vehicle and keep the vehicle’s geolocation within the HD map up-to-date. The state estimator does this by receiving input and aggregating data from all different parts of the vehicle.

Different situations might favor different sensors. For example, if the vehicle is inside a tunnel the GPS signal might not be reliable and the state estimator might have to rely on other sensors such as LiDAR, radar and the tires’ motion to update the vehicle’s geolocation. 

At the same time, on a highway or motorway, a truck might be in front of the vehicle blocking the LiDAR sensor from perceiving the road ahead. In this situation, our self-driving car will be unable to see what’s ahead. Nevertheless, with a reliable HD map and GPS signal, our vehicle can have a good idea of what lies ahead of it (whether it be the next junction or exit).

Ultimately, a state estimator will receive and combine data from multiple sensors within the autonomous vehicle. Not all sensors send data at the same rate. A LiDAR system can provide many pulsations per millisecond while GPS takes longer to update. The state estimator unifies values from various inputs.

3. Motion Manager

The motion planner is in charge of the movement. What’s more, a motion planner is where the artificial intelligence operates the vehicle based on the pre-established vehicle’s route. If we intend to move a self-driving car from point A to B, the first option might be going forward (or reversing or turning). The motion planner is in charge of determining which maneuvers are required for the vehicle to reach its destination.

Just as the state estimator helps the vehicle know when there’s an obstacle obstructing the vehicle’s route, the motion planner is in charge of calling for an emergency stop. Similarly, when it’s time for the vehicle to change lanes, the motion planner calls a maneuver for switching lanes.

More From Built In ExpertsHere’s What We Need to Build a Better Internet of Things

 

Benefits of Self-Driving Cars

Once we achieve a high level of autonomy for self-driving cars it will become a matter of changing our mentality and learning to rely on these vehicles. Here are some of the benefits we can achieve as a society that embraces self-driving cars.

Improved Read Safety 

A primary benefit of self-driving cars is their connectivity. Having connected autonomous vehicles on the road means that vehicles can communicate issues on the road or nearby accidents with each other. Even without connectivity, a road full of autonomous vehicles means a road without tired, distracted or drunk drivers.

Improved Traffic Congestion

Connected self-driving vehicles can communicate with nearby vehicles and accelerate and decelerate smoothly, helping eliminate stop-and-traffic. Alternatively, by exchanging traffic or accident data, self-driving vehicles can reroute to more optimized routes. 

Improved Mobility for the Older People and People With Disabilities

A world where self-driving cars are the norm would mean that seniors and those with disabilities would be less limited in terms of transportation and accessibility. Those who are unable or unqualified to drive for any number of reasons would be able to fetch their own groceries or get to their doctor appointments without worry. 

Self-Driving Cars-as-a-Service 

In the future, autonomous vehicles could act more like an on-demand service than a product to be owned. Instead of keeping a car in the driveway, people might simply request a self-driving vehicle through an app and have it arrive at their doorstep, much like calling a ride-hailing service today.

If autonomous fleets become widespread and affordable — especially in densely populated cities — owning a personal vehicle may no longer feel necessary for many people. Rather than paying for a car, insurance, maintenance and parking, users could pay per trip or subscribe to a monthly service that provides access to a vehicle whenever they need one.

Related Reading on Built InWhat Is Mobility as a Service?

 

Challenges of Self-Driving Cars

Despite there benefits there are a number challenges facing self-driving cars with regard to achieving the maximum level of autonomy or mass adoption. 

Software and Sensor Failure

Self-driving cars are entirely dependent on a complex web of technology that can fail due to mechanical wear or software glitches. Sensors like cameras and LiDAR can experience hardware degradation over time, or become blocked by everyday debris. Additionally, machine learning algorithms can struggle with edge cases — rare, highly unusual road scenarios that the software has never encountered in its training data — potentially leading to erratic, unpredictable vehicle behavior.

Adverse Weather Performance 

While autonomous vehicles perform exceptionally well in sunny environments, adverse weather remains a massive operational hurdle. Heavy rain, dense fog and blowing snow can scatter the light beams used by LiDAR and obscure the visibility of video cameras, making it difficult to detect lane markers or traffic signs. Furthermore, snow accumulation can completely cover road geometry, while ice severely alters the physics of braking and traction, challenging the predictive capabilities of the vehicle’s machine learning model.

Motion Sickness

Motion sickness occurs when the movement you see is different to what your inner ear expects. This happens to some people when attempting to read a book in a moving vehicle. There are two factors that increase the chance of motion sickness in autonomous vehicles. First, if you’re unable to anticipate where and when the vehicle moves, you could develop motion sickness. Secondly, if you don’t keep your eyes in the area of motion, you might easily develop motion sickness. 

Accident Liability

Within the context of self-driving cars, accident liability refers to the person liable for an accident caused by a self-driving vehicle. As we get closer to the highest level of autonomy, newer designs for autonomous vehicles will not include a dashboard, steering wheel or brake pedals. If a car doesn’t receive any human input, it becomes much more difficult for law enforcement agencies and insurance companies to determine liability. State and federal legislators will need to get involved to determine how we decide liability between the car manufacturer and the autonomous vehicle’s occupants. 

Cybersecurity Risks

Because autonomous vehicles rely heavily on wireless networks, cloud computing and over-the-air software updates, they are vulnerable to malicious cyberattacks. Hackers could potentially exploit vulnerabilities in the car’s software to intercept data, track vehicle locations, or disrupt GPS navigation. In a worst-case scenario, a severe breach could allow unauthorized remote access to critical driving controls like steering and braking.

 

Where Self-Driving Cars Are Used Today

Self-driving cars are no longer a distant promise confined to research labs. They are actively being used around the world. From daily commutes to industrial fields, autonomous vehicles are reshaping how we move people, goods and services. 

Personal Vehicles

While full autonomous vehicles aren’t yet available for everyday consumers, millions of people use semi-automatics during their daily commutes. Features like adaptive cruise control, lane-centering and hands-free highway piloting handle repeatable mechanics under human supervision. For consumers, this technology focuses on reducing driver fatigue and preventing accidents rather than taking complete control of the trip.

Ride Sharing and Robotaxis

The most advanced real-world application of autonomous technology is found in the commercial ride-sharing sector. Companies Waymo and Tesla run massive fleets of Level 4 robotaxis that carry passengers through major cities without a human behind the wheel. Passengers can easily hail these completely driverless vehicles through an app, just like a traditional rideshare service.

Autonomous Trucking

Long-haul freight corridors are ideal for self-driving technology because highway driving is far more predictable than chaotic city streets. Companies like Aurora operate commercial driverless truck routes to move cargo over hundreds of miles of highway. By operating day and night without needing rest breaks, autonomous trucks offer logistics companies a massive boost in efficiency and safety.

E-Commerce

Autonomous technology is reshaping the e-commerce supply chain, particularly for mid-mile logistics and final-stage deliveries. Autonomous delivery vans and sidewalk robots are being utilized to transport goods from fulfillment hubs directly to residential neighborhoods.

Agriculture

In the farming sector, autonomous and self-driving vehicles are being used to alleviate heavy-duty field work. Industry leaders like John Deere utilize fully autonomous tractors that use 360-degree cameras and high-speed processors to plow, till and seed fields independently. These smart machines can operate around the clock via tablet controls, allowing farmers to maximize crop yields and overcome persistent labor shortages. 

 

History of Self-Driving Cars

The idea of self-driving cars dates back to the 1920s when The Houdina Radio Control company showcased a radio-controlled vehicle in New York City. In the 1950s, RCA Labs and General Motors demonstrated their ideas for autonomous vehicles that were to be controlled by special circuitry installed below the roads (think streetcars only the rails are underground).

Advances in AI have been particularly important to make driverless cars a reality. Machine learning techniques like convolutional neural networks (CNN), backpropagation (first practically implemented in 1989) and Max Pooling (first introduced in 1992 as the Cresceptron framework) have become building blocks of modern computer vision.

Thanks to all the latest developments in the field of computer vision, cameras — crucial for object detection and recognition — have become important sensors in autonomous vehicles. However, this sparked an intense camera-only vs. LiDAR split over what physical hardware is required to drive safely. Pioneers like Waymo utilize a sensor fusion approach that pairs cameras with laser-scanning lidar for precise 3D depth. Meanwhile, Tesla broke industry consensus in 2021 by removing all radar sensors to rely entirely on cameras, arguing that vehicles should navigate the world using optical data exactly like human eyes.

From 2004 to 2007 the Defense Advanced Research Projects Agency (DARPA) of the United States of America held three challenges. In these challenges they offered a one million dollar price for any team that could deliver an autonomous vehicle capable of crossing 150 miles through the Mojave desert. In the first challenge no one finished. In the second challenge five vehicles completed the course

In 2007, Darpa held its third and final challenge in an urban environment — Victorville, California. In this challenge, vehicles needed to drive in traffic and perform a series of maneuvers such as merging, passing and parking. Carnegie Mellon University won the third competition. These challenges and their prizes were a great incentive for researchers and students to work on early-days problems for self-driving cars. In the final challenge, vehicles had to show real-time intelligent decision making based on their reaction to other vehicles on the road.

These days, most car companies offer a certain level of autonomy, such as park assist or collision detection. Furthermore, companies like Waymo and Tesla are pursuing full autonomy. In 2014, Tesla Motors announced their first Autopilot feature and in 2018 Waymo launched an autonomous taxi service called Robotaxi.

Uber also made an attempt at self-driving cars for food delivery and taxi services. However, they sold their driverless car division to a Silicon Valley startup called Aurora toward the end of 2020. Although Uber is working in partnership with Aurora to release a driverless vehicle, they also struck a deal with a joint venture between Hyundai and Aptiv known as Motional, which seems closer to delivering a driverless fleet for Uber.

Frequently Asked Questions

Most modern car brands now offer a certain level of autonomy, featuring capabilities like parking assist and collision detection. Currently, Tesla is actively pursuing full autonomy with its Autopilot and self-driving features, while still offering Level 2 or Level 3 self-driving consumer vehicles. True driverless operation is mostly limited to commercial robotaxi services, which include fleets operated by companies like Waymo.

Fully autonomous cars don’t exist yet because current AI, software and hardware limitations make it incredibly difficult for vehicles to handle every unpredictable driving scenario. For example, self-driving vehicles struggle to perform perfectly in poor weather conditions like dawn, dusk and heavy fog where sensors can fail. The industry also faces steep challenges with public skepticism and determining legal accident liability when there is no human driver.

Generally, self-driving cars are vehicles that use automated systems like radar, LiDAR and cameras to steer, brake and accelerate, but still require an attentive human driver ready to intervene. In contrast, a truly autonomous car acts as its own independent decision-maker, utilizing an AI brain and high-definition maps to navigate safely without any human input. 

Explore Job Matches.