The recent fatality in Arizona illustrates this point. You simply cannot create an algorithm that sufficiently predicts human behavior. Uber tried to spin the accident as unavoidable to even a human driver. The police released the video, and it is clear to me an alert human driver would have had time to react. The Uber which was driving along came around a curve, and the woman was just right of center in the middle of the road. The Uber didn’t even attempt to swerve, break or otherwise slowdown. It just mowed her over. Viewing the footage, an alert human driver could have swerved around the woman in either direction avoiding the collision entirely or at the very least slowed down lessening the extent of her injury.
The only way self-driving cars are going to work is if they are on a closed circuit where pedestrians and human drivers have to give the automated car the right of way.