Abstract: The invention provides an autonomous vehicle (AV) system with an artificial intelligence (AI) system for automated vehicle control and traffic operations. This AI system comprises a computation component configured to provide sensing, behavior prediction and management, decision making, and vehicle control for the vehicle. This AI system is configured to receive local knowledge, information, data, and models from a roadside unit (RSU) or a cloud to improve performance and efficiency of the vehicle. The AI system is configured to train models with heuristic parameters obtained from a local traffic control center/traffic control unit (TCC/TCU) or the cloud to provide an improved model. The AI system is configured to provide intelligence coordination to distribute intelligence among vehicles, RSUs and cloud. The system also provides localized self-evolving artificial intelligence.