Dynamic path optimization is an important part of intelligent transportation systems (ITSs). Aiming at the shortcomings of the current dynamic path optimization method, the improved ant colony algorithm was used to optimize the dynamic path. Through the actual investigation and analysis, the influencing factors of the multiobjective planning model were determined. The ant colony algorithm was improved by using the analytic hierarchy process (AHP) to transform path length, travel time, and traffic flow into the comprehensive weight-influencing factor. Meanwhile, directional guidance and dynamic optimization were introduced to the improved ant colony algorithm. In the simulated road network, the length of the optimal path obtained by the improved ant colony algorithm in the simulation road network is 3.015, which is longer than the length of the optimal path obtained by the basic ant colony algorithm (2.902). The travel time of the optimal path obtained by the improved ant colony algorithm (376 s) is significantly shorter than that of the basic ant colony algorithm (416.3 s). The number of iterations of the improved ant colony algorithm (45) is less than that of the basic ant colony algorithm (58). In the instance network, the number of iterations of the improved ant colony algorithm (18) is less than that of the basic ant colony algorithm (26). The travel time of the optimal path obtained by the improved ant colony algorithm (377.1 s) is significantly shorter than that of the basic ant colony algorithm (426 s) and the spatial shortest distance algorithm (424 s). Compared with the basic ant colony algorithm and the spatial shortest distance algorithm, the results of the optimal path obtained by the improved ant colony algorithm were more accurate, and the effectiveness of the improved ant colony algorithm was verified.