Abstract: The future of transportation is being reshaped by autonomous vehicles (AVs), which promise to revolutionize road safety, accessibility, and environmental sustainability. Central to their evolution are advancements in artificial intelligence (AI), which enable real-time perception, decision-making, and control. This paper explores the future trajectory of AI in AVs, highlighting innovative AI paradigms such as explainable AI, federated learning, and adaptive regulatory frameworks. It delves into the development of sophisticated perception algorithms for environmental understanding, advanced decision-making systems employing reinforcement learning and deep neural networks, and precise control mechanisms through predictive modeling and optimization. By addressing current challenges, including regulatory hurdles and the complexity of AI algorithms, this paper provides a comprehensive outlook on the potential and implications of AV technology. It envisions a future where AI-driven AVs are seamlessly integrated into society, offering profound insights into their impact on transportation and societal dynamics.