Using a 2D CAD package like AutoCAD provides a number of advantages when compared to producing paper drawings on a drawing board.
CAD drawings can be easily edited.
CAD drawings can be copied and used to create new drawings.
CAD drawing files can be emailed in seconds rather than being sent in the post.
A library of drawing blocks can be inserted into drawings speeding up the process
etc, etc.
However you gain the largest advantage if you start to use 3D CAD software as it allows you to capture the 3D geometry of a part which can then be used to generate the required projection views on a 2D drawing. The 3D models can also be used to perform a many of other tasks such as interference analysis, CFD & Finite Element Analysis.
3D data can be used to produce 3D rapid prototype models & photorealistic renderings. The 3D files can be imported into CAM software and used to generate programs for controlling CNC machines to produce machined parts.
Here is an example of a 3D CAD packages.
http://download.ptc.com/products/proengineer/wildfire5/interactive-tour/en/index.html
This video shows structural FEA on 3D CAD models
http://www.youtube.com/watch?v=geUCvKayhHE
Here is an example of CFD in use.
http://www.youtube.com/watch?v=1SpOnitUTGc
Here are some examples of rendered 3D CAD models
http://bunkspeed.com/gallery/
http://www.youtube.com/watch?v=NLOT7g_4H4c&feature=related