Artificial intelligence (AI) technology is deeply changing our lives and provides impetus for improving production and living efficiency as an important emerging tool. Digitalization and intelligent development have also become the development direction of the sports industry, bringing new requirements to the transformation of physical education (PE) and the improvement of the quality of PE teachers. PE is an important part of the public health system, and AI can deeply participate in the formulation of teaching strategies, the tracking of teaching processes and the evaluation of teaching results, effectively improving the quality of teaching. Research on the application of AI technology in PE has been carried out. This paper comprehensively reviews the existing research and conducts a comprehensive analysis of the research progress and status. The potential application areas of AI in PE are discussed to better promote the intelligent and digital upgrading of PE. We found that the research on the application of AI in PE is still in its early stages, and the research content needs to be strengthened in terms of breadth and depth. Furthermore, this paper analyzes the challenges faced by PE teacher development and training in the context of educational transformation in the era of AI, and explores the necessary skills and knowledge related to AI technology that future PE teachers should master in order to effectively achieve the improvement of teaching level and the sustainable development of public health system. The review of this paper provides valuable guidance for educators and policymakers to formulate high-quality teacher development and training mechanisms, and provides a new reference for the application and development of AI in sports.