Driverless cars use sensors, GPS, and artificial intelligence to navigate roadways without human input. They are being developed to reduce accidents caused by human error and increase road capacity. Companies like Google, GM, and Volkswagen are testing self-driving vehicles that use lidar, radar and cameras to map their environment and drive autonomously. While driverless cars promise benefits like reduced traffic and increased productivity, challenges remain regarding cost, security, ability to handle all road conditions, and potential job disruption.