Key challenges in developing autonomous vehicles include ensuring safety, improving perception systems, and addressing regulatory concerns. Safety is paramount; developers must ensure that vehicles can navigate complex environments without accidents. Advanced perception systems, utilizing sensors and machine learning algorithms, are essential for recognizing obstacles and responding to dynamic conditions on the road. Additionally, regulatory hurdles pose significant challenges, as governments worldwide are still crafting policies around autonomous technologies. Balancing innovation with public safety and regulatory compliance remains a critical focus in the advancement of autonomous vehicles.