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This lecture explores the concepts of intelligence and perception in the context of autonomous vehicles. It delves into the differences between human and machine intelligence, the challenges of rational thinking, and the importance of acting rationally. The lecture discusses the potential of artificial intelligence in last-mile mobility and its impact on society. It also covers breakthroughs in AI, the interplay between datasets and algorithms, and the role of deep learning in solving perception tasks. Furthermore, it examines the applications of AI in transportation systems, emphasizing the role of intelligent agents and spaces. The lecture concludes with a discussion on social intelligence and the challenges of socially-aware AI.