Artificial intelligence (AI) being integrated in almost every field of endeavour. The autonomous vehicles market is one of the fascinating sector which encouraging regulators, consumers and policy makers to understand its need, problems it is solving and how it is being applied. The study focuses on applications of AI in Self-Driving Cars. Big Data collected using sensors and IoT devices allows AI to analyse the surroundings and make appropriate decisions for the movement of the car in the following steps: Data Collection, Data Processing, Path Planning and Action. The problems of conventional cars like poor road safety, lesser independence for the disabled, high costs, less productivity, traffic congestion, high travel time, and environmental pollution can be prevented with self-driving cars via the application of AI. However, challenges like social acceptability, road conditions, traffic conditions, weather conditions, data privacy and cybersecurity are faced by AI powered self-driving cars. The study also covers similar challenges specific to India. This paper also includes future possibilities of Level 5 self-driving
