The development of electric power is of great significance to the progress and national security. Several large-scale power outages occurred in recent years have sounded the alarm for the development of my country's electric power industry. At the same time, with the continuous progress of computer and automation technology, the continuous advancement of power grid informatization and artificial intelligence construction, the construction of distribution network fault intelligent processing system is of great significance to the development of power grids and society. The purpose of this paper is to study the design of an intelligent processing system for distribution network faults based on artificial intelligence. Focusing on the distribution network fault information processing and control system, combined with the construction practice of the distribution network intelligent fault processing system, the development status, theoretical basis, system design and engineering construction of the distribution network fault intelligent processing system are studied. Based on the model, the architecture and technical framework of the fault intelligent processing system are analyzed, combined with the development status and actual needs of the power grid, seven business functions of the system are constructed, and the application effect of the distribution network fault intelligent processing system is analyzed. After running the fault intelligent processing system, the voltage qualification rate has been improved to a certain extent, which ensures the safety of the distribution network operation.