Following the end of the Cold War, the Command was reduced, with many of its subordinate headquarters spread across the Atlantic area losing their NATO status and funding.

This led to ACLANT being decommissioned effective 19 June 2003, and a new Allied Command Transformation being established as its successor.

At the 2002 Prague Summit, it was decided that NATO should change its military structures and concepts, and acquire new types of equipment to face the operational challenges of coalition warfare against the threats of the new century.

A suite of "Baseline for Rapid Iterative Transformational Experimentation" (BRITE) software was designed in response to the Maritime Situational Awareness request.

French Air Force General Jean-Paul Paloméros replaced Abrial at the end of September 2012.

The Deputy Supreme Allied Commander Transformation position is currently[update] filled by General Chris Badia of the German Air Force.

These have included CD&E, a national Chiefs of Transformation conference, an examination of the Global Commons, Law of Armed Conflict, and a Multiple Futures project.

The Implementation Division, led by Assistant Chief of Staff (ACOS) Implementation, is responsible for guidance and coordination of the activities of two Sub-Divisions, Joint Education and Training (JET) and Joint Experimentation, Exercises and Assessment (JEEA), as well as providing guidance for the Joint Warfare Centre (JWC) and Joint Analysis Lessons Learned Centre (JALLC), in their efforts to enhance training programs, to carry out concept development and experimentation, to press on common standards, and to develop effective programs to capture and implement lessons learned.

[7][8] Under a customer-funded arrangement, ACT invests about 30 million Euros into research with the NATO Communications and Information Agency (NCIA) each year to support scientific and experimental programs.

A Centre of Excellence (COE) offers recognized expertise and experience to the benefit of the Alliance, especially in support of transformation.

It provides opportunities to enhance education and training, to improve interoperability and capabilities, to assist in doctrine development and/or to test and validate concepts through experimentation.