AI in self-driving technology enhances road safety, reduces traffic congestion, and improves transportation efficiency by enabling vehicles to navigate roads, interpret traffic conditions, and make real-time decisions with minimal human intervention. By integrating with advanced sensors, LiDAR, and real-time traffic data, these AI-driven autonomous vehicle systems use chain-of-thought prompting to process multiple inputs and make informed driving decisions through logical reasoning. This approach not only enhances road safety by reducing human errors but also improves traffic flow through intelligent decision-making, reduces fuel consumption with optimized driving patterns, supports real-time adjustments to changing road conditions, and enables accessibility for individuals unable to drive.