AI at the Wheel: The Effectiveness of Advanced Driver-Assistance Systems

Vikram Maheshri, Clifford Winston and Yidi Wu

Journal of Law and Economics, 2026, vol. 69, issue 2, 387 - 411

Abstract: Has automakers’ use of artificial intelligence (AI) in advanced driver-assistance systems (ADASs) improved automobile safety? We address this question with a first-of-its-kind trim-level dataset of the universe of registered automobiles and accidents in Texas over a 9-year period. We find that ADASs reduce the risk of a motorist getting in any type of accident by 11 to 14 percent and reduce the risk of a motorist getting in a single-vehicle fatal accident by roughly one-third. Our finding that ADASs have improved automobile safety is especially important because it provides early evidence of the benefits of vehicle automation in actual travel environments. Hopefully, it will spur greater interest in the development and widespread adoption of fully autonomous vehicles and in the potential benefits of other transportation technologies using AI.

Date: 2026
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