CalTech is working on research into 'Swarm Intelligence and Traffic Safety'
Abstract. A smart car that assists the driver must give warnings in dangerous situations, override the driver to avoid collisions, and help to reach the intended destination as quickly as possible. Unfortunately, satisfying these requirements and at the same time leaving the decisional autonomy at the individual level becomes an extremely hard problem to solve with traditional methods. Biologically-inspired techniques such as Swarm Intelligence and Incremental Evolution provide new promising ways to tackle the design and distributed control problems of a traffic system. In this project, solutions are developed using embodied simulations and validated with real robot experiments.
The site has some photos and further explanations.