The traffic information comes from INRIX, which is a leading provider of traffic data. I tried the new app, and it certainly showed some traffic snarls. But here in southern Arizona, things don't get too dicey even at rush hour, so there wasn't any need to select a new route. I could see very detailed information in Phoenix, where traffic can be downright hellish.
The ActiveTraffic feature is US$9.99 for a 12 month subscription. Current owners of CoPilot Live v8 US Traffic subscribers will get upgraded to TrafficLive for free.