Artificial Intelligence plays a pivotal role in autonomous vehicles through real-time data processing and decision-making. AI algorithms analyze inputs from various sensors, including cameras, lidar, and radar, to perceive the vehicle's environment. This processing allows the vehicle to detect obstacles, monitor traffic, and make split-second decisions. AI systems utilize machine learning to improve performance over time, learning from past experiences and refining algorithms. These advancements enhance both safety and efficiency in driving, contributing to the development of fully autonomous systems capable of navigating complex road scenarios.