Automated driving is widely assumed to play a major role in future mobility. In this paper, we focus on “high driving automation” (SAE level 4) and analyze potentials in terms of more efficient traffic flows, travel times, and user benefits as well as potential impacts on urban neighborhoods and potentials for sustainable urban development. Along selected use cases of automated vehicles in the region of Karlsruhe, Germany, we show that at least moderate user benefits can be expected from travel time savings, with the extent depending on the defined operational design domain of the vehicles and the routes taken. With regard to residential development of urban neighborhoods, there are opportunities for repurposing public space. However, these are limited and require parallel regulatory measures to become effective.