For now, the vessel has an onboard captain overseeing operations while it drives itself, but the long-term goal is to make the craft completely autonomous.
In a world first for the technology, a new self-driving ferry took its maiden voyage around the waters of Stockholm on Thursday.
The craft is fitted with cameras, radar, lidar laser and ultrasonic systems which it uses to steer its course under the watchful supervision of an onboard captain.
Eventually though, the goal is for the ferry to operate completely autonomously without the need for human oversight.
"If a boat changes direction or if there's a canoe we see it right away in less than a second. We update the course accordingly," Erik Nilsson, Chief of Operations at the Torghatten company which developed the system, said.
The first 10-metre boat cost around $1.6 million (€1.5 million) to produce and has capacity for up to 30 passengers.
Its Norwegian creators have their sights set on expanding the service within Sweden as well as abroad.
The ferry initiative was a private and public cooperation and funded in part by the European Union.
For more on this story, watch the video in the media player above.