Swiss AI and the New Autonomous Driving Regulation

As unsurprising as it will sound to people familiar with Switzerland and its priorities, the country spends a lot of time debating, planning, and maintaining its transportation infrastructure. With a growing population and limited means to increase the throughput of roads and public transportation, the discussion can be complex: the ability to expand existing roads is restricted by constitutional imperatives (reaffirmed in a popular vote last year), and it is hard for public infrastructure to keep up with the ever-growing population. Fortunately, Swiss AI offers many solutions to this very Swiss problem.

One envisioned solution to making the existing road infrastructure more efficient is to leverage innovative AI to help decongest roads and increase automobile safety. For this reason, as of March 1st, 2025, the Swiss government enacted legislation passed in 2023 which enables the use of automated vehicles on Swiss roads. One particularly interesting aspect of this law is that it seeks not just to enable the private use of AI-powered vehicles but also the use of automated driving for logistics and last-mile deliveries.

While Generative AI is not a big focus for Switzerland, AI & hardware integrations and Innovative AI are. This new playground for Swiss AI startups is exciting. To illustrate the significance this may have for Swiss Deep Tech, Innovative AI funding, and the future of mobility in Switzerland, let’s take a look at this new law, AI-powered vehicles, Swiss AI startups, AI-driven mobility’s investment landscape in Switzerland, and the social and economic implications.

Switzerland’s New Regulation on Automated Vehicles

Switzerland’s recent regulatory changes, effective March 1, 2025, have paved the way for both personal and commercial applications of automated vehicles. The Federal Roads Office (ASTRA)’s new Amendment to Automated Vehicles now permit vehicles to operate in autopilot on highways and fully driverless vehicles to function in controlled environments.

The newly enacted regulation on automated driving represents a major step toward mainstream adoption. It allows vehicles with automation levels 3 and 4 to operate on Swiss roads, meaning drivers can legally disengage from actively controlling the vehicle in certain conditions. While fully autonomous vehicles remain prohibited for now, Switzerland’s long-term vision is clear: the country aims to integrate fully automated, networked passenger and freight transport into its mobility system.

The federal entity explains that by implementing a framework for automated vehicles, traffic fluidity could be improved as they enable homogeneous speeds and lower distance to other vehicles. They furthermore explain that it will heighten safety on the roads, as powered drivers do not get distracted. Finally, they explain that this enablement of the technology will enable new possibilities for logistical and commercial endeavours.

• Freeway Pilot: Drivers of vehicles equipped with an approved freeway pilot system can activate this feature on highways, allowing them to relinquish control of the steering wheel. While continuous monitoring isn’t required, drivers must remain prepared to retake control upon the system’s request. 
• Driverless Routes: The regulations enable the operation of fully driverless vehicles on designated routes, facilitating applications such as public transportation and goods delivery. This advancement is particularly significant for logistics and last-mile delivery services, offering potential improvements in efficiency and cost-effectiveness.
• Automated Parking: Automated parking systems are now permissible, allowing vehicles to park themselves without driver intervention. This innovation can optimize space utilization in urban areas and reduce the time drivers spend searching for parking spots.

These developments underscore Switzerland’s commitment to integrating advanced AI technologies into its transportation infrastructure, aiming to enhance both personal mobility and commercial logistics.

Switzerland’s Journey Toward Fully Autonomous Vehicles

Switzerland has been actively exploring autonomous mobility for nearly a decade, leveraging strong collaboration between research institutions, government agencies, and industry leaders. A prime example was the 2016 launch of the world’s first self-driving public transport buses in Sion, an early demonstration of how automation could enhance urban mobility. These pilot projects were made possible through ASTRA, which has prioritized autonomous driving since 2015 by approving controlled trials across various sectors.

Swiss AI is at the core of these advancements, powering a growing number of pilot projects. The Swiss Association for Autonomous Mobility currently oversees multiple initiatives, including driverless logistics solutions like Embotruck, Europe’s first autonomous grocery delivery vehicle LOXO, and battery-powered, remote-monitored construction vehicles. With new regulatory support and continuous investment in AI-driven mobility, Switzerland is paving the way for a future where fully autonomous transport becomes a reality.

How AI Powers Automated Vehicles

AI is the backbone of autonomous driving. Swiss AI research focuses on three key areas:

1. Machine Learning & Perception – Advanced neural networks allow vehicles to detect objects, pedestrians, and road conditions in real time.
2. Decision-Making Algorithms – AI predicts traffic flow, reacts to sudden obstacles, and adapts driving strategies based on constantly changing environments.
3. Collaborative AI – Vehicles communicate with each other and with smart infrastructure to optimize traffic efficiency.

Which Swiss AI Start-ups are Leading Autonomous Driving

Switzerland’s AI ecosystem is fuelling a new wave of innovation in autonomous driving. While global tech giants dominate much of the self-driving car industry, Swiss startups are carving out a niche in AI-powered navigation, motion planning, and real-time perception. These companies are not just building self-driving technology, they are enhancing safety, optimizing logistics, and creating smarter urban mobility solutions. Here’s a look at the key players driving the autonomous revolution in Switzerland.

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The Investment Landscape: AI-Driven Mobility in Switzerland

Swiss investors are increasingly supporting AI-driven mobility startups. Key players include:

• Lakestar: One of Europe’s leading VC firms, investing in AI-powered startups, including autonomous mobility ventures.
• Emerald Technology Ventures: A pioneer in cleantech venture capital, Emerald led a CHF 23.5 million investment in Embotech, a Zurich-based innovator in autonomous driving solutions for industrial logistics. 
• Spicehaus Partners: This VC firm invests in early-stage startups in Switzerland, with a focus on sectors such as mobility, fintech, and cybersecurity.
• Serpentine Ventures: Specializing in AI and deep-tech investments.
• AMAG Innovation & Venture Lab: Based in Switzerland, this fund focuses on connected and autonomous cars, mobility-as-a-service (MaaS), and smart cities. 
• Swiss Innovation Agency (Innosuisse): Provides grants and funding for AI research, including automated driving projects.

Switzerland’s robust AI ecosystem, coupled with strong investment support, is fostering rapid innovation in autonomous driving.

What is the Future of Swiss AI in Mobility

Swiss AI is set to transform mobility, reshaping both economic structures and urban landscapes. While traditional driving jobs may decline, new opportunities will emerge in AI development, system monitoring, and fleet management. AI-driven traffic optimization and autonomous electric fleets could significantly cut emissions, aligning with Switzerland’s environmental goals. Cities are already investing in AI-powered public transport, with Swiss Post trialing self-driving shuttles to streamline urban mobility.

Looking ahead, advancements in AI safety remain a priority, with ETH Zurich and EPFL refining models to enhance self-driving decision-making. Policymakers will need to adapt regulations to balance innovation with public safety, ensuring that AI-driven transport is both efficient and ethical. As a leader in AI and autonomous mobility, Switzerland has the potential to become a global hub for AI-powered automotive solutions, reinforcing its position at the forefront of deep-tech innovation. Between this new regulation, a growing number of start-ups in the field, and a growing interest for Innovative AI in Swiss venture capital, it is likely that we will see some major global players emerge from the ecosystem in the not-so-distant future.