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I wondered that also as soon as photos surfaced a few weeks ago showing he gear stalk had the AP icon on it.
We don't know yet, but I assume that setting is adjusted in the center display.
NOTE: the TACC 1 to 7 setting is not "car lengths". It is neither time nor distance. It is just a range of settings for the space between you and the car ahead, and at a given setting that space varies depending on your speed.
On a similar note, I've wondered what sort of settings will be available for fully autonomous driving. For example, there could be some range of settings from "maximum safety" to "typical BMW driver." I also wonder whether it would be legal to have a setting that tells it to exceed the speed limit. A lot of people drooling over autonomous driving may be sorely disappointed if it can only drive below the speed limit and show courtesy to other drivers. It will certainly not start out driving like a professional Formula One driver on a race course (once it becomes available).
It sure will be nice to change into a lane that suddenly comes to a stop and it's finally not my fault. Perhaps all the cars communicate to keep that from happening, "Follow me, I'm in lane 3!"