Autonomous vehicles use sensors like LIDAR, radar, cameras and sonar to navigate roads without human input. They work by sensing the environment, identifying paths and obstacles using artificial intelligence, and updating maps based on sensory input. While autonomous vehicles could reduce accidents and traffic, challenges include technology limitations, security issues, job losses and people's reluctance to give up driving. The presentation concludes they may transform transportation if deployed safely at scale, but questions remain about consumers wanting to buy autonomous cars.