For smart city traffic flow prediction in the period of big data and industry 4.0, the prediction accuracy is low, the prediction is difficult, and the prediction effect is different in different geographical locations. This paper proposes a smart city traffic communication forecast based on Industry 4.0 and big data analysis application. Firstly, this paper theoretically explains the application scenario of urban traffic fault text big data and analyzes the characteristics of related problems, especially the fault problems. Secondly, the AC traffic prediction algorithm is studied, and the application analysis of PVHH, IDT, and Ford–Fulkerson algorithms is applied, respectively. Finally, the above three algorithms are used to predict and analyze traffic flow.