Re: Just take their licence away
With an automated car, the license could be far more active.
Instead of allowing free rein until found to be non-conformant, conformance with the rules could be imposed electronically. The car would be responsible for spotting pedsetrians, interacting with the owner etc. But on needing to access some shared resource such as a freeway or busy city street, the car would have to announce its intentions to the city traffic management system and obtain permission for literally everything it did in real time, such as making a turn, changing lane etc.
The owner still retains control of the car - they can change plans at any time - but the car has to achieve them in a way that meets not just the law but the instantaneous traffic management aims. No illegal turns, speeding, misparking or contributing to traffic jams. If you ask it to do something that overloads the system, you can't do it.
Similar to the road-train concept for freeways where you join a train of cars moving together, but applied to cities.