This research examines the potential of the Internet of Things (IoT), artificial intelligence (AI), and big data to transform traffic management and urban transportation systems. IoT sensors in cars and public infrastructure make it possible for us to collect and analyze mobility data in real time. AI-powered prediction algorithms can help you make quick, smart decisions. The proposed design has a cutting-edge traffic management system that can change the flow of traffic in real time. This might save travel time by up to 25% and carbon emissions by 18%. Machine learning algorithms makes the system even more adaptable by figuring out how traffic would move and change with the times in cities. The results show that combining IoT and AI makes traffic flow better and helps make plans for smart cities that can evolve and be based on data. In the end, these technologies work together to make city transportation better for the environment, more efficient, and longer lasting.