Autonomous vehicles utilize sensor technology to perceive their environment and make real-time driving decisions. Key sensors include lidar, radar, cameras, and ultrasonic sensors, which work together to detect obstacles, lane markings, and other critical elements on the road. This data is processed using advanced algorithms and machine learning to navigate safely and efficiently. By integrating multiple sensor inputs, autonomous vehicles can create a comprehensive understanding of their surroundings, allowing them to react appropriately to dynamic driving conditions, ultimately enhancing road safety and reducing human error.