Autonomous vehicles use various sensors like ultrasonic sensors, RADAR, LIDAR, image sensors, GPS, and wheel speed sensors to navigate without human input. They rely on sensor integration and technologies like computer vision, V2X communication, and electronic control units to process sensor data. While self-driving cars offer benefits like safety and efficiency, there are also challenges to overcome like unpredictable humans, bad weather, and needing detailed digital maps. Fully autonomous vehicles may become common by 2040 if these issues can be addressed.