Traffic congestion due to road incidents poses a significant challenge in urban environments, leading to increased pollution, economic losses, and traffic congestion. Efficiently managing these incidents is imperative for mitigating their adverse effects; however, the complexity of urban traffic systems and the variety of potential incidents represent a considerable obstacle. This paper introduces IncidentResponseGPT, an innovative solution designed to assist traffic management authorities by providing rapid, informed, and adaptable traffic incident response plans. By integrating a Generative AI platform with real-time traffic incident reports and operational guidelines, our system aims to streamline the decision-making process in responding to traffic incidents. The research addresses the critical challenges involved in deploying AI in traffic management, including overcoming the complexity of urban traffic networks, ensuring real-time decision-making capabilities, aligning with local laws and regulations, and securing public acceptance for AI-driven systems. Through a combination of text analysis of accident reports, validation of AI recommendations through traffic simulation, and implementation of transparent and validated AI systems, IncidentResponseGPT offers a promising approach to optimizing traffic flow and reducing congestion in the face of traffic incidents. The relevance of this work extends to traffic management authorities, emergency response teams, and municipal bodies, all integral stakeholders in urban traffic control and incident management. By proposing a novel solution to the identified challenges, this research aims to develop a framework that not only facilitates faster resolution of traffic incidents but also minimizes their overall impact on urban traffic systems.