I'm not up on state of the art on computer image/object recognition but the experience I have from about 10 years ago leads me to believe that there are still challenges to be solved, especially when it comes to recognizing movements and intentions.
Neural networks have come a LONG way in ten years, due in large part to the exponential growth in processing power in GPU's. Neural nets can perform the same or better as humans in a variety of image recognition tasks. For example, neural nets have been trained to give the prognosis for cancer patients based on images of tumors. The networks were trained on thousands of known images of previous cancer patients along with medical histories. When new images were passed through the network, the prognosis, including likelihood of survival was given, based upon the images of previous patients.
If you really think about it, when humans drive, we are largely doing simple image recognition. White line, yellow line, double line, car in front, car in back, pedestrian about to cross, bicyclist riding on side of road, etc. There is some context, yes, but really in most cases the decisions we make in driving are quite automatic and shallow. They are in large part rule based, learned from long habit. There are still likely to be cases at times when simple image recognition and habitual rule based behaviour will not suffice; in such cases, yes self driving cars might have trouble. However I would assert that such corner cases are likely to be rare. The advantages of having a computer driving will be that they won't get drowsy or distracted, and will have far more information input about the surroundings of the car, gleaned from eight cameras, several ultrasound sensors, and a radar system that can detect cars in front of the car in front of you. To a certain extent, driving is simple. If there is an object in front of you, or beside you, don't hit it; stay in the correct lane; don't go too fast into corners. I think that on the whole, computers are likely to be better at this than humans.