Latest / Elon Musk Podcast / California Police Tickets Tesla and Self Driving Cars
Transcript
- 0:00California law enforcement now issues formal traffic citations
- 0:03directly to the artificial intelligence software operating
- 0:07Waymo and Tesla vehicles. Right, which legally
- 0:10reclassifies the corporate manufacturer as the actual
- 0:13driver of the vehicle. I mean, that completely erases
- 0:16the loophole that previously allowed empty vehicles to commit
- 0:19traffic violations without any consequence.
- 0:22Yeah, and you know this overlaps directly with Tesla initiating
- 0:25mass production of vehicles completely lacking steering
- 0:27wheels or pedals. Exactly.
- 0:29So if the software is legally the driver, how exactly do we
- 0:33judge a machines mistakes in a court of law when it inevitably
- 0:37crashes? Well, we are basically watching
- 0:39the entire legal framework of transportation being rewritten
- 0:43in real time for generations. The Vehicle code was built
- 0:47around a very specific assumption, right?
- 0:50A natural person sits in the front seat, holds a physical
- 0:52steering wheel and makes conscious decisions, right?
- 0:55Because the law applies to human behavior.
- 0:57Speeding, failing to yield, running a red light.
- 1:00Those are citations written to a person who carries a state
- 1:02issued driver's license. Yeah, a police officer pulls you
- 1:05over, walks up to your window and asks for your physical
- 1:09documentation. The entire justice system for
- 1:12the road relies on the presence of a human being to accept
- 1:15responsibility. Which is exactly why the
- 1:18introduction of the Notice of Autonomous Vehicles
- 1:20noncompliance is so structural. This is the new mechanism that
- 1:24allows police officers to formally cite a corporate
- 1:27manufacturer for moving violations.
- 1:29Because before this existed, law enforcement officers were
- 1:33effectively paralyzed when dealing with autonomous fleets.
- 1:36I mean, imagine you are a patrol officer right?
- 1:39You observe a vehicle blow through a stop sign.
- 1:41Standard procedure dictates you hit your sirens, pull the
- 1:44vehicle over, request a license and registration.
- 1:47Yeah, when you walk up to the glass and look inside, there is
- 1:50no operator. The driver's seat is completely
- 1:53empty. The steering wheel might be
- 1:55turning itself, but there's no human to hand a pen to.
- 1:58The entire enforcement protocol just breaks down on the side of
- 2:01the road. It really does.
- 2:03The officer cannot arrest a computer.
- 2:05They cannot suspend a software program's non existent driver's
- 2:09license. There's a very specific, well
- 2:12known incident that illustrates this perfectly.
- 2:15Oh, the one in San Bruno. Yes exactly.
- 2:18An officer in San Bruno was on duty and watched an empty Waymo
- 2:22execute a completely illegal U-turn right in the middle of a
- 2:25public Rd. Oh wow, so the officer witnessed
- 2:28it happened right there. Yeah, witnessed it clearly.
- 2:30The vehicle was undeniably in the wrong.
- 2:32The officer activated their emergency lights and pulled the
- 2:34robo taxi over, but the officer was entirely powerless to issue
- 2:38a ticket. Because of the driver rule.
- 2:40Right. The state law literally required
- 2:42a natural person to be behind the wheel to receive the
- 2:44citation. The officer just stood there
- 2:47looking at an empty car and you'd only verbally notify the
- 2:50company through a support speaker that their car did
- 2:53something illegal. That creates a massive
- 2:55accountability void. Think about the consequences if
- 2:57you, a human driver, execute an illegal U-turn.
- 3:01You get a ticket, you get points on your license, your insurance
- 3:04premiums increase. And if you do it enough times,
- 3:07the state takes away your privilege to drive.
- 3:10It is a documented behavioral failure that follows you but for
- 3:14an empty robo taxi. The incident essentially
- 3:17vanished into a corporate server.
- 3:18So the Police Department had no legal mechanism to find the
- 3:22algorithm. None.
- 3:24It created a situation where tech companies could test their
- 3:27fleets on public roads without generating a public government
- 3:31documented paper trail of their software failures.
- 3:34Well the notice of autonomous vehicle non compliance changes
- 3:37that dynamic entirely. Creating a formal, government
- 3:41documented paper trail of software failures limits a
- 3:44companies ability to claim their testing phase is flawless.
- 3:48Exactly. When you have a stack of
- 3:50official citations issued by law enforcement sitting in a public
- 3:53database, you can no longer go on television or tell your
- 3:56investors that your safety record is unblemished.
- 3:59The state is now creating an independent, legally binding
- 4:02record of every single time the algorithm fails to follow the
- 4:05rules of the road. It strips away the corporate
- 4:06secrecy. Yet previously, if a car made a
- 4:09mistake that did not result in a crash, the company could just
- 4:12internally log it as a learning opportunity and delete the
- 4:15footage. Now, the notice of non
- 4:18compliance fundamentally shifts the power dynamic from the
- 4:22manufacturer's public relations department directly to the
- 4:25state's regulatory body. Wait back up.
- 4:28I am trying to visualize this. A cop writes a ticket, but there
- 4:31is no driver to roll down the window.
- 4:34How do you physically hand a citation to a car with no
- 4:37driver? That is a great question.
- 4:39Are they just slipping a piece of paper under the wiper blade
- 4:41of a robot and hoping a technician eventually finds it
- 4:44when the car goes back to the charging depot?
- 4:46No, no. The process is entirely
- 4:48digitized and tightly regulated. The strict reporting mandates
- 4:51require that these citations are not just left on the windshield
- 4:54to blow away in the wind. So how does it reach the
- 4:56company? When an officer issues one of
- 4:58these notices, they input the vehicles unique fleet
- 5:01identification number into their cruisers terminal.
- 5:04The autonomous vehicle companies are then legally required to
- 5:07report these specific violations to the state motor vehicle
- 5:10department within a very tight window.
- 5:13OK, so the physical paper doesn't matter at all.
- 5:15The digital citation triggers an immediate compliance countdown
- 5:19for the corporate headquarters. Exactly.
- 5:20And if there is a collision involved, that reporting window
- 5:23shrinks drastically, requiring them to notify the state even
- 5:27faster. The system forces the companies
- 5:30to maintain a constant open pipeline of data with the state
- 5:33regulators. I see.
- 5:34So it is not just about a multibillion dollar company
- 5:37paying a $200 fine. The fine is completely
- 5:40irrelevant to them financially. Totally irrelevant.
- 5:43It is about logging the behavioral failure of the
- 5:46software in a centralized state database.
- 5:49Regulators can now track exact patterns.
- 5:52If software version 4.2 is repeatedly running SKOP signs in
- 5:56a specific residential neighborhood, the state has the
- 5:59concrete data to identify that trend and mandate a recall.
- 6:03Handing out tickets for rolling through a stop sign is one
- 6:05thing, but dealing with active emergencies requires an entirely
- 6:08different level of machine compliance.
- 6:10Oh absolutely. If we look at the new emergency
- 6:13operational requirements, there is a strict mandate for a two
- 6:16way audio link. A remote human operator sitting
- 6:20in a Control Center must answer within seconds of a police
- 6:24officer or firefighter making contact with the empty vehicle.
- 6:27Which makes sense, because that directly addresses the extreme
- 6:30friction between emergency responders and autonomous
- 6:33systems. Picture an active emergency
- 6:36scene. A building is on fire, right
- 6:38Fire trucks are trying to navigate a narrow city street,
- 6:41hoses are being dragged across the pavement, and police are
- 6:44securing a perimeter. They need civilian vehicles out
- 6:46of the way immediately. Yeah, a human driver can be
- 6:49shouted at, directed with frantic hand signals, or
- 6:52aggressively told to reverse down an alleyway.
- 6:54A human understands the urgency in context.
- 6:57But a machine only understands its base programming, and the
- 7:00programming usually tells the machine to simply stop moving
- 7:03when it is confused, which is the exact opposite of what first
- 7:06responders need. Yeah, if there is a massive
- 7:09fire, an empty robo taxi stopping dead in the middle of
- 7:12the only access Rd. blocks the ladder engines from reaching the
- 7:15building. So this two way audio link
- 7:17forces the tech companies to have a human being physically
- 7:20ready to take responsibility, speak through the car's exterior
- 7:24speakers, and communicate with the authorities on the ground
- 7:27almost instantly to figure out how to move the vehicle.
- 7:30Furthermore, we have the emergency geofencing directive.
- 7:34Local officials can now digitally cordon off an active
- 7:37emergency zone Wait. How does that actually work?
- 7:40Basically, the police dispatcher draws an invisible digital
- 7:43perimeter around A4 block radius where an incident is occurring.
- 7:48The automated vehicles are legally required to clear that
- 7:51specific area almost immediately upon receiving the wireless
- 7:54signal. Oh wow.
- 7:55Yeah, they must evaporate from the zone and prevent any other
- 7:58cars in their fleet from entering.
- 8:00Think about the staggering technical infrastructure
- 8:03required to actually pull that off.
- 8:05It forces tech companies to essentially run massive real
- 8:08time emergency dispatch centers of their own.
- 8:11Exactly. They have to maintain a staff of
- 8:13remote operators large enough to handle simultaneous emergencies
- 8:17across multiple major cities. They need the digital
- 8:19architecture to push geofence updates to thousands of moving
- 8:23vehicles, instantly overriding their destination programming.
- 8:27It shifts these companies from being pure software developers
- 8:30to acting as municipal utility operators.
- 8:33They are managing public infrastructure flow in real
- 8:36time, just like the power grid or the water supply.
- 8:39It is an incredibly demanding requirement and honestly I think
- 8:42it is an unfair standard. Really.
- 8:44Why is that? Well, we are holding the
- 8:47machines to a standard of perfection that human beings
- 8:50never achieve. Human drivers frequently panic,
- 8:54freeze, or cause absolute gridlock around fire trucks and
- 8:57ambulances. You see it on your own commute.
- 9:00That is true. People pulling over in the wrong
- 9:01direction, blocking intersections because they get
- 9:03flustered by the deafening sirens and flashing lights.
- 9:06Humans are terrible in emergencies, yet we expect the
- 9:09software to perfectly and silently evaporate from the
- 9:12scene without causing any friction whatsoever.
- 9:14I completely disagree with you on that.
- 9:16If a machine cannot panic, it has no excuse for lingering in a
- 9:19danger zone. But they are still navigating
- 9:22unpredictable physical spaces. Sure, but humans freeze because
- 9:26our biology gets overwhelmed. You hear a sudden air horn, your
- 9:30adrenaline spikes, your heart rate jumps, and your brain
- 9:33temporarily short circuits trying to process the threat.
- 9:37A computer does not have a biological nervous system.
- 9:40It does not get scared of flashing lights, it possesses
- 9:43absolute perfect spatial awareness from its 360° radar
- 9:47and LIDAR sensors, and it has immediate access to high
- 9:51definition digital mapping fairpoint.
- 9:53If it possesses those superhuman advantages, it should absolutely
- 9:57be held to a higher standard of compliance.
- 9:59It should not be allowed to act like a confused, terrified
- 10:02human. OK, that is a fair counter
- 10:04argument regarding its raw processing capabilities.
- 10:07But whether it is an unfair double standard or not, it is
- 10:10now the law, and this opens up the ability for regulators to
- 10:13impose escalating penalties if a corporate fleet repeatedly
- 10:17obstructs first responders. Right, it is no longer just a
- 10:19warning. Exactly.
- 10:20The state can actively restrict their fleet sizes.
- 10:23If your car is block an ambulance, the state can legally
- 10:26cap the number of vehicles you were allowed to deploy.
- 10:28They can limit your operating hours to just the middle of the
- 10:31night, or they can pull your operating permits entirely.
- 10:34The state will literally force you to shut down your servers
- 10:37and pull your physical cars off the public roads.
- 10:40And these strict emergency mandates and compliance rules
- 10:43are colliding directly with a massive hardware rollout
- 10:46happening a few states over. Yeah, we have to look at the
- 10:48hardware reality of the cyber cab.
- 10:50We are watching Tesla's production ramp up at
- 10:53Gigafactory Texas and the physical design of this vehicle
- 10:56is radical. Radical is one word for it.
- 10:59It is A2 seat vehicle built entirely with without a steering
- 11:02wheel or pedals. There is no manual override
- 11:05mechanism anywhere in the cabin. None at all.
- 11:08Right, it runs purely on a vision based autonomous driving
- 11:11system. It relies entirely on exterior
- 11:14cameras to perceive the environment, process the visual
- 11:17data through its neural net, and execute every single driving
- 11:20task. The volume they are targeting is
- 11:22critical to understanding the impact of this.
- 11:25They have a production target of 2 million units annually. 2
- 11:28million. This is not a small boutique
- 11:31project. It is not a limited run test
- 11:34fleet operating in a single sunny neighborhood.
- 11:37Right. That production figure is meant
- 11:38to completely replace their current consumer models as the
- 11:42absolute highest volume vehicle they manufacture.
- 11:45They are betting the entire industrial capacity of their
- 11:49Texas factory on a vehicle that physically cannot be driven by a
- 11:52human being. Removing the steering wheel
- 11:55entirely limits human intervention TO0.
- 11:58Imagine you are a passenger sitting inside inside this
- 12:00vehicle. You are cruising down the
- 12:02highway and you suddenly feel unsafe.
- 12:04Right. Maybe the car is navigating a
- 12:05complex construction zone very poorly, or perhaps it is driving
- 12:09far too fast for a sudden torrential downpour.
- 12:12There are no physical controls for you to grab.
- 12:14You cannot slam your foot on a brake pedal.
- 12:16You cannot grab a wheel and steer away from a swerving semi
- 12:19truck. You are completely, utterly
- 12:22captive to the decision making of the software.
- 12:24So the hardware is totally committed.
- 12:26There is no going back to human driving once that car rolls off
- 12:29the assembly line. Creates incredible regulatory
- 12:31friction. The hardware is designed from
- 12:34the ground up for Absolute 0 human supervision.
- 12:38The factory in Texas is churning out vehicles that physically
- 12:42cannot be supervised or overridden by a human occupant.
- 12:46But current state laws, particularly those strict
- 12:49enforcement mechanisms on the West Coast we just discussed,
- 12:52are actively tightening the leash on unsupervised
- 12:55operations. Exactly.
- 12:56You have hardware built for a purely autonomous, theoretical
- 13:00critical future, entering a legal environment that is
- 13:03actively hostile and increasingly skeptical of
- 13:05unsupervised algorithms. And Tesla's push for this
- 13:08unsupervised hardware is heavily complicated by a very recent,
- 13:11highly consequential legal battle over what they've been
- 13:14calling their software for the past decade.
- 13:16Yeah, a state regulatory ruling recently found that Tesla
- 13:18violated consumer protection laws by misleadingly marketing
- 13:22its advanced driver assistance features.
- 13:24For years they were using the terms Autopilot and Full Self
- 13:28Driving to sell software to consumers.
- 13:30But that software, despite the names, still legally required a
- 13:34human being to pay constant attention to the road and keep
- 13:38their physical hands on the wheel, ready to take over.
- 13:41The immediate fallout from that regulatory ruling was severe.
- 13:44The state threatened to suspend their manufacturing and dealer
- 13:47licenses. Wow.
- 13:48That is the nuclear option. It really is to avoid having
- 13:52their ability to build and sell cars in the entire state
- 13:55completely shut down. Tesla complied with the order.
- 13:58They changed the marketing language on their web website
- 14:00and in their vehicles. They renamed the software to
- 14:03explicitly include the word supervised, changing it to full
- 14:07self driving supervised. This made it legally explicitly
- 14:11clear to the consumer that the human driver is still the one
- 14:14responsible for the vehicle. But the twist here is
- 14:17fascinating. Immediately after complying with
- 14:19the order, immediately after changing the name and adding the
- 14:21supervised label to satisfy the regulators and keep their
- 14:24licensing in, Tesla turned around and sued the motor
- 14:27vehicle department to reverse the original false advertiser
- 14:30ruling. Wait, they sued after they
- 14:32already changed it? Yes, they accepted the penalty,
- 14:35implemented the requested change their entire fleet, and then
- 14:39launched a massive lawsuit to wipe the original regulatory
- 14:42finding off the books. Why spend the money to sue after
- 14:46you have already complied? It all comes down to the
- 14:48liability shield in civil lawsuits involving severe
- 14:51crashes, Tesla's primary legal defense in court has always been
- 14:56that the human driver was supervising the system.
- 14:59Oh, I see. They argued to the judge that
- 15:01the software is just a fancy assistance tool like advanced
- 15:04cruise control, and the human operator is the one legally and
- 15:08morally responsible for the vehicle's safe operation.
- 15:11Precisely having a formal documented state ruling on the
- 15:14books officially calling the company a false advertiser
- 15:18regarding their self driving capabilities completely
- 15:20undermines that exact defense in front of a jury.
- 15:23Because imagine you are severely injured in a crash and you sue
- 15:26the manufacturer. The manufacturer's lawyers stand
- 15:28up in court, point at you, and say you were supposed to be
- 15:31washing the road. The manual says you must pay
- 15:34attention. But if your lawyer can present a
- 15:37formal government ruling to the jury that says this company
- 15:40actively and falsely advertise as the car as capable of driving
- 15:44itself, the jury is going to look at the corporate
- 15:47manufacturer, not you. It changes the legal burden
- 15:50entirely. Consumers can now point to the
- 15:53state's official finding to argue they were genuinely misled
- 15:56into thinking the car could drive itself safely while they
- 15:59checked their phone, which is exactly why they took their
- 16:01hands off the wheel. The corporate marketing itself
- 16:04becomes the legal reason for the driver's negligence.
- 16:07Now, while the regulatory environment on the West Coast is
- 16:10highly adversarial, entirely focused on enforcement citations
- 16:14and false advertising battles, other states are actively
- 16:17rolling out the red carpet to attract these exact same fleets.
- 16:21Yeah, we can look closely at the Texas preemption model.
- 16:24Texas utilizes an authorization model managed directly by the
- 16:28state's motor vehicle department.
- 16:30It is a legislative framework specifically designed to
- 16:32facilitate rapid commercial deployment rather than slow
- 16:35incremental permission. The concept of preemption is the
- 16:39entire key to their strategy. The state law explicitly forbids
- 16:44local cities, counties or any political subdivisions from
- 16:47imposing their own regulations, franchises or rules on automated
- 16:51vehicles. So a local City Council in Texas
- 16:53cannot pass an ordinance demanding a special congestion
- 16:56tax on robotax. Right, They cannot limit their
- 16:59operating hours around schools or require them to paint their
- 17:02cars a specific neon color for visibility.
- 17:05The state government in Austin has declared absolute top down
- 17:09authority over the entire issue. Contrast this with the heavy
- 17:12municipal friction you see elsewhere.
- 17:15Without preemption, a tech company has to go city by city,
- 17:18sitting in endless local council meetings, negotiating with every
- 17:21single mayor, Alderman and transportation committee just to
- 17:24get permission to map a few streets.
- 17:26It is a logistical and political nightmare for a tech company
- 17:28whose entire business model relies on scaling quickly
- 17:32Because of preemption. In Texas, autonomous fleets can
- 17:34launch commercial operations in Austin, Dallas and Houston
- 17:37simultaneously without negotiating a single contract
- 17:40with those individual city councils.
- 17:42This preemption opens up immediate commercial deployment.
- 17:46Companies essentially just need to certify to the state that
- 17:48their vehicles can achieve A minimal risk condition during a
- 17:52critical failure and they must maintain a massive insurance
- 17:55policy. A minimal risk condition
- 17:57basically means that if the main driving computer crashes or the
- 18:00sensors are blinded by mud, the car has a backup system that
- 18:04knows how to smoothly pull over to the side of the road, turn on
- 18:07its hazard lights, and stop safely.
- 18:09Rather than just freezing violently in the middle of a 70
- 18:12mile per hour fast lane, right? If they can submit paperwork
- 18:16proving that capability and they show proof of the insurance
- 18:19policy, the state hands them the authorization to start charging
- 18:22the public for rides. Hold on, what if the car is
- 18:25actually dangerous in practice? If the state just hands out
- 18:29authorizations based on paperwork without conducting
- 18:31their own deep, independent testing of the software?
- 18:35What happens when a fleet inevitably starts causing
- 18:37accidents in downtown Houston? Is there a kill switch?
- 18:41The enforcement mechanism in this model is entirely reactive.
- 18:45The state retains the power to revoke the authorization if they
- 18:49determine the vehicles operation is actively likely to result in
- 18:52serious bodily injury. OK, so they can pull the plug.
- 18:55Yes, and operating a fleet after that authorization is pulled
- 18:58becomes a criminal misdemeanor for the corporate officers.
- 19:01So the state's strategy is to step out of the way, allow the
- 19:04innovation to happen as quickly as possible, but maintain a very
- 19:08heavy criminal hammer to drop if the technology proves hazardous
- 19:12to the public. So Texas relies heavily on
- 19:15stopping operations only after things get dangerous on the
- 19:17road. A neighboring state relies on
- 19:20rigorously recording the danger exactly as it happens.
- 19:23Right. This brings us to the Arizona
- 19:25black box standard. Arizona law forces autonomous
- 19:28vehicles to maintain a constantly rolling data
- 19:30recorder. It acts exactly like a flight
- 19:32data recorder, the black box on a commercial airplane.
- 19:35The strict data requirements encoded in this law are
- 19:38fascinating. The vehicle must record high
- 19:40fidelity operational data for 30 seconds before and 30 seconds
- 19:44after any collision. That part is somewhat expected.
- 19:48I mean, if a crash happens, we obviously want the telemetry to
- 19:50know why, but more importantly, the law mandates it must record
- 19:55and preserve data for any near miss.
- 19:58And the law does not leave a near miss up to interpretation.
- 20:01It specifically defines it. It is not just a passenger's
- 20:03subjective feeling of danger. Right.
- 20:05A near miss is legally defined as avoiding a collision by a
- 20:09margin of less than two seconds or any situation requiring
- 20:13emergency hard braking. So if the vehicle's radar
- 20:16detects A pedestrian stepping off the curb, and the algorithm
- 20:19has to slam on the brakes or swerve violently to avoid an
- 20:21impact within a literal 2 second threshold, all the data from
- 20:25that event must be preserved by law.
- 20:28This severely limits corporate secrecy.
- 20:30In the event of a crash or even just a close call, the exact
- 20:34operational parameters of the algorithm are permanently
- 20:37captured and must be provided to state authorities.
- 20:40The manufacturer cannot hide behind a vague PR statement
- 20:43about unexpected road conditions or unavoidable circumstances.
- 20:47No. The data recorder captures the
- 20:49raw sensor inputs, the exact millisecond of the software's
- 20:52reaction time, the precise steering angle, the hydraulic
- 20:55braking force. Every single calculation the
- 20:58machine made is laid bare. I still argue this is an
- 21:02impossible standard to enforce evenly across the transportation
- 21:06network. Human drivers experience near
- 21:08misses every single day without having to report them to the
- 21:11government. Wait, really?
- 21:12You think it's impossible? Yeah, think about it.
- 21:14Every time you drive to work and slam on your brakes because
- 21:16someone aggressively cut you off in traffic, that qualifies as a
- 21:19near miss. We do not require human beings
- 21:22to upload a data log to the state every time they brake.
- 21:25Hard to avoid a Fender Bender. Why should the machine be
- 21:29burdened with this massive, expensive data collection
- 21:32mandate for events that do not even result in a scratched
- 21:35bumper? Well, because humans don't
- 21:36operate on centrally updated collective algorithms.
- 21:39What do you mean? If I learn a lesson from a near
- 21:42miss today, say I learned to watch out for blind spots on a
- 21:45specific intersection, it only makes me individually a better
- 21:49driver. It doesn't instantly magically
- 21:51improve the driving skills of every other human on the road.
- 21:55I see where you're going with this, right?
- 21:56But with an automated fleet, fixing one machines near miss
- 22:00fixes the entire global fleet instantly.
- 22:03If a robotaxi in Phoenix almost hits a Edestrian because its
- 22:06vision system got confused by a shadow, the data from that near
- 22:10miss is analyzed. The core code is rewritten by
- 22:12engineers and the software update is pushed to every other
- 22:15vehicle on earth. OK, that is a massive
- 22:18difference. Making the data vital for
- 22:20continuous fleet wide safety improvements absolutely
- 22:23justifies the strict reporting. All this mandated data recording
- 22:27and the new traffic ticketing mechanisms feed directly into
- 22:30the much larger problem of how the justice system actually
- 22:33handles a civil lawsuit against a robot.
- 22:36This is where we have to look closely at the legal theory
- 22:38analysis regarding how to judge automated systems in a court of
- 22:41law. Currently, the justice system
- 22:43relies on traditional product liability.
- 22:46Right. If your kitchen toaster suddenly
- 22:48explodes and burns your house down, you sue the manufacturer
- 22:51for selling a physically defective product.
- 22:54But applying traditional product liability law to an artificial
- 22:58intelligence driving a car is proving to be a massive failure
- 23:01in the courts. The failure stems entirely from
- 23:03the concept of information asymmetry.
- 23:05Can you explain that? Sure, think of information
- 23:08asymmetry like going to a mechanic, but the hood of your
- 23:11car is welded shut and only the manufacturer has the key.
- 23:15If your brakes fail, you know they failed, but you cannot
- 23:18prove which specific gear snapped because the company will
- 23:22not let you or the jury look inside the engine.
- 23:25Because it is nearly impossible for a regular citizen to prove a
- 23:28specific software coding flaw caused their crash, the driving
- 23:32algorithms are heavily protected proprietary black boxes.
- 23:36Exactly. If you sue a car company, your
- 23:38lawyer has to prove exactly what line of code failed.
- 23:41The manufacturer possesses thousands of elite software
- 23:44engineers and millions of lines of proprietary code.
- 23:47A plaintiff simply cannot penetrate that wall of corporate
- 23:50secrecy to prove a design defect.
- 23:52So legal scholars are actively exploring alternative
- 23:56frameworks. We have a few competing legal
- 23:59standards trying to replace product liability specifically
- 24:03for autonomous vehicles. The first major alternative
- 24:07being debated is strict liability.
- 24:09Under this legal theory, the manufacturer simply pays for any
- 24:13damage the vehicle causes, regardless of fault.
- 24:16If the robo taxi hits a mailbox, the company pays to replace the
- 24:19mailbox. Yep, there is no long court
- 24:21battle over software bugs or sensor failures.
- 24:24The machine caused the physical damage.
- 24:27The corporate owner pays the bill.
- 24:28But strict liability severely discourages innovation if
- 24:31companies are forced to pay for accidents they genuinely
- 24:34couldn't avoid. How so?
- 24:36Well, if a pedestrian literally jumps out from behind a parked
- 24:38van directly in front of the robo taxi, and the physical laws
- 24:41of momentum make stopping in time impossible, why should the
- 24:45company pay millions in damages? Under strict liability they
- 24:48would have. To right and that creates an
- 24:50immense unpredictable financial burden on the companies trying
- 24:53to develop the technology. The second alternative is the
- 24:56reasonable computer standard. This involves judging the car
- 24:59against other autonomous vehicles currently on the
- 25:02market. Oh, so if your robot taxi
- 25:04crashes into a concrete barrier, the court looks at the data to
- 25:07see whether a competitor's robotaxi would have avoided that
- 25:10exact same barrier? You are judging the software's
- 25:13performance against the current industry standard for artificial
- 25:17intelligence. Exactly.
- 25:19And the third alternative is the reasonable human standard.
- 25:23Under this framework, the manufacturer is liable for
- 25:26damages only if a competent, attentive human driver would
- 25:30have avoided the crash in the same circumstance.
- 25:32Wait, let me get this straight. We are holding the multi billion
- 25:34dollar supercomputer to the standard of a guy driving home
- 25:38from work. That's it exactly.
- 25:39You asked the jury a very simple question.
- 25:42Would a normal, sober, awake human being have stopped in
- 25:45time? If a human would have inevitably
- 25:47crashed due to the physics of the situation, the computer is
- 25:50not held liable, right? But if a human would have easily
- 25:54seen the obstacle and avoided the crash, the manufacturer
- 25:57pays. It uses a standard of care that
- 26:00human juries already deeply understand and apply every day.
- 26:04The new traffic citations we discussed earlier perfectly
- 26:06bridge this gap. The official notice of non
- 26:09compliance serves as immediate government proof of negligence.
- 26:12Yes, it completely bypasses the need for a crash victim to audit
- 26:17the proprietary code. If the state has already issued
- 26:20a formal citation to the software for running a red
- 26:22light, the victim in the resulting crash doesn't need to
- 26:25hire a team of software engineers to prove the car was
- 26:28defective. The government citation itself
- 26:30proves the machine breached its basic duty of care to the
- 26:33public. But judging A lightweight
- 26:35passenger sedan running a stop sign is one thing.
- 26:38The stakes are about to get exponentially heavier as the
- 26:41vehicle weight classes change. Because the regulatory ceiling
- 26:45on vehicle weight has recently been lifted, automated vehicles
- 26:48weighing over £10,000, which includes heavy duty freight
- 26:51trucks and massive commercial semis, are now legally permitted
- 26:54to operate on public highways. We are moving from small
- 26:57passenger cars navigating city streets to massive multi ton
- 27:02logistical vehicles hurtling down the Interstate without a
- 27:06human being inside the cab. The testing requirements for
- 27:09these heavy duty systems are intensely rigorous compared to
- 27:12passenger cars. A heavy duty system must log
- 27:15half 1,000,000 miles of physical testing at each development
- 27:18phase before it is approved for commercial deployment.
- 27:21Compare that to just 50,000 miles for a standard passenger
- 27:24car. The physics of stopping an
- 27:2680,000 LB fully loaded freight truck are fundamentally
- 27:30different from stopping a sedan. Yeah, and the potential for
- 27:33catastrophic mass casualty damage requires an order of
- 27:36magnitude more validation from the state.
- 27:38This connects directly to the broader economic model driving
- 27:42this entire industry forward. Target operating cost for
- 27:45passenger robo taxes is around $0.20 per mile.
- 27:48If travel becomes that incredibly cheap, the
- 27:51fundamental design of our cities changes entirely.
- 27:54We currently design massive portions of our urban spaces
- 27:57around the assumption that humans need to store their heavy
- 27:59cars in parking lots while they work or shop.
- 28:01Which brings us to the concept of the zombie car.
- 28:04The zombie car. Yeah, imagine you commute to a
- 28:07busy city center every morning. You currently have to pay for a
- 28:10parking garage, which might cost 30 or $40 a day, but if the
- 28:15operating cost of the automated vehicle is only $0.20 a mile, it
- 28:19is vastly cheaper for your emty vehicle to slowly circle the
- 28:23block for three straight hours rather than pay for that
- 28:26expensive parking garage. Think about the reality of that.
- 28:29Imagine downtown Manhattan or Chicago, but instead of parked
- 28:33cars quietly lining the streets, there are 10,000 empty vehicles
- 28:38endlessly circling the blocks at 5 mph.
- 28:41They're just burning cheap electricity, creating an endless
- 28:43loop of traffic simply because it makes financial sense for the
- 28:46user to keep the car moving. The.
- 28:48Streets will be absolutely clogged with ghost cars.
- 28:50We are talking about pure algorithmic gridlock.
- 28:54This immediately opens up the necessity for cities to
- 28:56implement aggressive congestion pricing, specifically targeting
- 29:00empty autonomous vehicles. Municipalities will have to
- 29:03charge a high fee to vehicles driving without passengers in
- 29:06dense urban cores just to prevent total gridlock.
- 29:10The economics of cheap driverless miles will force
- 29:13cities to heavily tax the empty space inside the vehicle.
- 29:16Yep, they have to. So the legal identity of the
- 29:19driver has officially transferred from the human seat
- 29:22to the corporate boardroom. This forces manufacturers to
- 29:25design hardware that survives real time municipal enforcement
- 29:28and absolute legal accountability.
- 29:32The state is no longer looking for a plastic driver's license,
- 29:35they are auditing the algorithm itself.
- 29:37And if the cost of travel drops to almost nothing, can the
- 29:40machines become statistically far safer than us?
- 29:43Will human driving eventually be outlawed entirely just to lower
- 29:46the insurance premiums for the automated fleets?
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