In brief
The software turns the footage into recognized objects and relationships.
Useful to know
Video perception modules from Bosch are software for processing images from the car's cameras. They detect and classify parts of the environment to provide data to helper functions. [1]
Camera and recognition software are different components. More megapixels alone do not prove a better performance of the entire system. The source describes performance on selected systems on a chip, indicating the need for appropriate computing hardware. When comparing cars, look at the final behavior and the conditions of the function, not just the characteristic of the sensor.
Sources
For further detail and to check the information: