Yes: that's the first-order effect, just like, say, adding a lane to an existing road. But that's not the end of the story:
http://www.vtpi.org/gentraf.pdf
And not only will self-driving cars, by increasing roadway capacity, cause those traditional induced demand effects, they'll tap into all new types of latent demand:
- by no longer requiring a person to be able to park where they live, people who have no residential parking available can still own cars. This will tend to reduce the number of households with zero vehicles available. Trips per household increases as the number of vehicles in the household increases, but especially for that step from zero vehicles to 1 vehicle.
- by no longer requiring a driver to be in the vehicle, it will be allowing a ton of congestion-contributing trips that don't actually transport goods or people (e.g. the return leg home after your car drops you off somewhere, or setting it to circle the block while you have lunch so you can avoid paying for parking).
In the long term, increasing capacity by adding lanes does little if anything to actually reduce congestion. Increasing capacity with self-driving cars won't do any better a job of reducing congestion, but it will create new ways to make congestion worse.