You’re running late for work. You tap a button on your phone, and within minutes, a driverless car pulls up to the curb. You settle in, sip your coffee, and get a head start on your work emails. When you arrive, you simply step out and walk straight into your office building, with no parking hassles and no stress.
With any new emerging technology, there are inherent risks to security and safety. The autonomous vehicles (AVs) being tested in California and Texas are no exception. Tech giants are partnering with major automakers to address consumer convenience, privacy, and cost. These vehicles are calculated to save households $2,000 per year per AV, simultaneously pumping in about $25 billion into the U.S. economy. But how do AVs fit into our existing transportation landscape, especially alongside mass transit?
Human error remains the leading cause of car accidents. By helping to remove the human element, AVs remove the externalities and allow for more consistent and predictable driving. Unlike people, who naturally are imperfect, these vehicles do not get ‘tired’ or make emotional decisions, which helps build consumer confidence. While AVs will not justify irresponsible behavior, they do offer a safe alternative for those who need a ride home after a night out, potentially reducing alcohol-related accidents. With many predictable AVs sharing the roads, their systems can communicate and synchronize with each other, further decreasing the likelihood of collisions. When emergencies do occur, AVs would benefit from being equipped with security precautions, such as a help call button, onboard cameras, and remote operator intervention. Cybersecurity is a major concern, with the National Highway Traffic Safety Administration (NHTSA) stressing a multi-layered approach as these systems become more connected. Policymakers must understand that safety is the priority of AVs as the consumer will choose the transportation option with the lower perceived risk.
As of June 2025, AV regulations are evolving. Thirty-five states have their own requirements, ranging from insurance mandates to human intervention rules. Because of conflicting laws between states and the ambiguity formed, the NHTSA recently announced a new, clear framework, categorized by five levels, to set federal standards for vehicle evaluation, safety protocols, and crash reporting. However, there are no clear guidelines. While metro systems have policies related to accountability and insurance claims, AVs do not have a sole individual responsible. While much remains unknown, these standards will raise the barrier to entry for new companies to compete, making it harder to integrate seamlessly with the current bus and train systems, which generally have lower liability concerns.
Economic uncertainties are also a key issue. Automation could impact jobs for rideshare drivers and taxi operators, leading to periods of structural unemployment and raising questions about which skills will be relevant. Besides affecting local economies, the advanced technology AVs heavily rely on — LiDAR, radar, cameras, and powerful computers — adds significant cost. In the long-run, mass production and economies of scale are expected to bring prices down. Policymakers are also considering incentives for zero-emission AVs, aligning with climate goals and reducing transportation-related pollution. Since subway systems have been established for decades, their costs have remained relatively stable and consistent. Therefore, the additional expenses associated with AVs would be more justifiable if they were integrated into the existing network of intercity buses and trains, rather than operating as a separate, isolated system.
City layouts were not designed with self-driving in mind. Improving the quality of roads and highways is essential, but it is equally important to introduce innovative solutions that will help prepare our existing infrastructure for AVs. This looks like building adaptive traffic signals and sensors that communicate directly with vehicles, creating exclusive AV lanes, and installing charging stations where vehicles can recharge on the go, similar to pit stops in racing. Other options include developing solar panels or dynamic wireless power transfer pads that create renewable energy from roads.
To speed up this shift in innovation, lawmakers could introduce tax breaks, grants, or targeted subsidies for AVs. These measures would help cover the hefty upfront costs and make it easier for people to own, use, and charge the vehicles. As technology improves and production ramps up, taking a ride in an AV could become just as affordable as using regular public transit, while also offering more privacy, flexibility, and direct routes. Of course, making these changes will take serious long-term planning and investment, but they are essential steps towards a future where AVs and public transportation work together in the same network ecosystem.
AVs are not yet suited for all environments and, in many cases, are not intended to fully replace private cars; in dense and high-traffic cities like New York, they may operate less efficiently, and adding more vehicles to already gridlocked streets could worsen congestion. To avoid these pitfalls and becoming unsustainable projects that waste resources and fail to gain widespread adoption, AV systems must be designed with input from diverse stakeholders, including:
- Commuters and pedestrians
- Transportation and insurance agencies
- Ridesharing and technology companies
- Automakers and disability advocates
Autonomous vehicles clearly have a place in the future, but despite rapid progress, there is still a way to go before they are a practical choice for daily travel. Like any transformative system, AVs need more real-world data, research, continued testing and development, and thoughtful integration with our current infrastructure before they can deliver to their full potential. Looking ahead to 2050, it is likely AVs will be much more common, dependable, accessible, and a staple of daily life. Reaching that milestone will require the U.S to act ambitiously with policymaking. Other countries, including China, Netherlands, and Sweden, are already in the race and have had a head start with their own sustainable autonomous systems. If the U.S. wants to remain a leader in transportation innovation, it must close the current research gaps and make modifiable policy decisions.
Let’s build a smarter future for everyone who shares the road.
Written by Daryoush Jamkhu, Public Policy Intern
The Alliance for Innovation and Infrastructure (Aii) is an independent, national research and educational organization working to advance innovation across industry and public policy. The only nationwide public policy think tank dedicated to infrastructure, Aii explores the intersection of economics, law, and public policy in the areas of climate, damage prevention, eminent domain, energy, infrastructure, innovation, technology, and transportation.