Artificial intelligence (AI) is last years the hottest buzzword, started from the world of information technologies and spreading across various areas of everyday activities where it can be applied. However, reality is that AI is with us for the longer time than we initially think of. In this paper we explain foundations and definitions of AI, followed by comparation of AI applied in transport, called Intelligent Transportation Systems (ITS). Main areas of state of the art AI-based technologies in road transport and traffic applications, already in use or ready to be used, are presented. At the same time, major obstacles for implementation of AI technologies which are on the horizon in those areas have been discussed.