Audi's new luxury sedan is a high-tech machine that should terrify BMW and Mercedes

Audi recently unveiled its new luxury sedan - and it should make BMW and Mercedes nervous.

The all-new Audi A8 will support level 3 autonomous driving, meaning the car can handle most scenarios without driver intervention.

The sedan takes a direct shot at BMW's 7-Series - the German automaker's luxury sedan that debuted in 2015 and supports autonomous functions like adaptive cruise control. The A8 will also attempt to rival Mercedes S-Class - the world's best-selling luxury sedan that also comes equipped with self-driving features.

Audi's luxury sedan has slipped behind the 7-Series and S-Class on global sales, but the automaker will aim to boost its outlook with the tech-savvy A8.

Scroll down for a closer look at the new luxury sedan: