GM researching driverless cars

Thrun said a key benefit of the technology eventually will be safer roads and reducing the roughly 42,000 U.S. traffic deaths that occur annually — 95 percent of which he said are caused by human mistakes.

"We might be able to cut those numbers down by a factor of 50 percent," Thrun said. "Just imagine all the funerals that won't take place."

Other challenges include updating vehicle codes and figuring out who would be liable in a crash and how to cope with blown tires or obstacles in the road. But the systems could be developed to tell motorists about road conditions, warn of crashes or stopped vehicles ahead and prevent collisions in intersections.

Later versions of driverless technology could reduce jams by directing vehicles to space themselves close together, almost as if they were cars in a train, and maximize the use of space on a freeway, he said.

"It will really change society, very much like the transition from a horse to a car," Thrun said.

The U.S. government has pushed technology to help drivers avoid crashes, most notably electronic stability controls that help prevent rollovers. The systems are required on new passenger vehicles starting with the 2012 model year.

Vehicle-to-vehicle communication and technology allowing cars to talk with highway systems could come next.

Still in debate are how to address drivers' privacy, whether current vehicles can be retrofitted and how many vehicles would be need the systems to develop an effective network.

"Where it shakes out remains to be seen but there is no question we see a lot of potential there," said Rae Tyson, a spokesman for the National Highway Traffic Safety Administration.

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