Based on the detailed analysis of the evolution of key characteristics of power distribution network with the “carbon peaking and carbon” target background, this paper sorts out the challenges existing in intelligent sensing and fault detection of power distribution network. Then the challenges of distribution network intelligent sensing and fault detection are combed, and the existing problems and the methods of realizing intelligent perception with the help of artificial intelligence technology are summarized. Next, the difficulties of distribution network fault diagnosis and fault location are analyzed, and the application and research progress of artificial intelligence in distribution network fault diagnosis and fault location are introduced. For further analysis and fault diagnosis of complement each other, in this paper, takinga 10 kV overhead line as an example, the role of artificial intelligence in intelligent perception of distribution network and the performance comparison of different artificial intelligence algorithms for partial discharge fault detection are analyzed in detail. Finally, the applications of artificial intelligence in intelligent sensing and fault detection of distribution network are reviewed.