Google Self-Driving Car on City Streets
One of Google's self-driving car test drivers walks through how engineers are teaching the car to navigate real-life scenarios like traffic, construction, rail roads and cyclists. Now, the software can detect a cyclist's hand gesture and yields to him. The car is slowly learning to handle different real-life situations safely and naturally. Though, there are still improvements to be made.
You can learn more about the car here: http://goo.gl/LKlBZQ