Autonomous vehicle technology is starting to reshape the operation of the transportation industry, as well as the way that risk is assessed by insurers.

It’s vital for businesses to understand this technology’s implications if they want to stay competitive while participating in an industry that is evolving.

Liability

A pressing question is who is liable when an accident occurs.

There are very real accident risks when autonomous vehicles are involved, such as the liability risks associated with Waymo accidents in California.

Little clarity is offered by current United States case law. This leaves insurers tying liability to use, maintenance or ownership of vehicles.

Component manufacturers can be held liable as well, such as when sensors fail and cause crashes.

Liability can be messy and influenced by things such as AI’s role, waivers of subrogation and contractual agreements.

The Impact of Autonomous Vehicles

Autonomous vehicle technology is quickly advancing, but the path towards its mass adoption is not straightforward.

Autonomous vehicles are operating in some cities today, with robotaxis leading the way. 2035 could see fleets of driverless taxi vehicles running in numerous cities, particularly in the United States and China.

Trucking is an area which could be disrupted, with autonomous trucks possibly cutting costs and solving congestion when they run on highway corridors that are dedicated. Experts are predicting that almost one third of new mid-distance United States trucks may be autonomous by the year 2035.

Autonomous trucks can run overnight without additional costs, reducing labor costs and solving congestion issues.

It’s likely that personal use autonomous vehicles will stay a niche, though. It’s expected that only a small percentage of new personal vehicles will be fully autonomous by 2035.

Aerial drones are transforming delivery in areas that are low-density, and may play a larger role in healthcare and logistics.

Challenges and Autonomous Vehicle Adoption Barriers

Barriers and challenges to the adoption of autonomous vehicles include:

• Technological limitations: Concerns remain, such as the navigation of complex traffic scenarios and system malfunctions. Cybersecurity vulnerabilities are also critical. The efficacy and safety of autonomous vehicles can be compromised by malicious attacks.

• Regulatory concerns: Fleet businesses need to navigate evolving standards and laws to ensure compliance with a regulatory landscape that varies across different regions. It’s critical to address liability concerns and establish safety protocols. The future of autonomous vehicles will be shaped by collaboration between policymakers and industry stakeholders.

• Infrastructure challenges: Existing infrastructure might not be prepared adequately to support autonomous vehicles’ widespread use. Infrastructure investments such as dedicated autonomous vehicle lanes, sensor communication networks and traffic control system upgrades will be necessary. Logistics companies need to consider a need for maintenance facilities for autonomous vehicles.

• Labor market implications: There will be concerns about labor displacement, especially for warehouse operators and truck drivers. The industry is going to face pressure to retrain laborers displaced by automated vehicles, providing them with additional skills.

• Public acceptance and perception: A lot of people are apprehensive regarding the reliability and safety of autonomous vehicles, leading to hesitance from the public to utilize the technology. Businesses may be prevented from implementing installation or testing of autonomous vehicles by a lack of confidence from local governments and communities.

Autonomous vehicles and AI are continuing to mature. As these industries grow, fleet management will enter a period of substantial change. For businesses to remain competitive, they will have to thoughtfully integrate these technologies into safe and socially responsible operations.