This paper explores the design of an intelligent traffic management system based on Internet of Things (IoT) and artificial intelligence (AI) technologies. It summarizes the current research status of intelligent traffic management system design from relevant literature, demonstrating the application effects and methods of IoT and AI technologies in urban traffic systems. The paper proposes specific content for the design of an intelligent traffic management system based on IoT and AI technologies, clarifying the overall system design and module settings to ensure the system's strong feasibility. It also outlines the main performance indicators for system practical testing to ensure that the system can effectively operate under the guidance of relevant standards. The research results indicate that IoT and AI technologies can ensure that the urban traffic management system possesses intelligence and automation features, while also ensuring strong data analysis and coordination capabilities. These technologies can scientifically and effectively manage and control the urban traffic management system, further enhancing urban transportation capacity. This serves the purpose of improving the level of urban economic development and residents’ travel efficiency, representing the future development direction of urban traffic management systems.