With the promulgation of the “Action Plan for Innovation in Artificial Intelligence in Higher Education” and the extensive implementation of artificial intelligence technologies such as ChatGPT (Chat Generative Pre-trained Transformer), VR (Virtual Reality), and DeepSeek in the realm of sports, it has become an inevitable trend for artificial intelligence to spearhead reform and innovation in physical education within higher institutions. Leveraging artificial intelligence to facilitate digital transformation can revolutionize traditional methods of knowledge transmission towards the cultivation of students core competencies, thereby promoting the development of diversified models in college physical education. This study employs a range of methodologies including comprehensive literature review and logical analysis, to elucidate the intricate mechanisms, challenges, and pathways through which artificial intelligence facilitates the advancement of physical education in higher education. The research asserts that artificial intelligence plays a significant role in enhancing cognitive capabilities, operational efficiency, and collaborative synergy among stakeholders involved in college physical education. Nevertheless, this transformative process encounters four substantial obstacles: the complexities surrounding technology dissemination, inadequate levels of digital literacy, frail data security protocols, and a notable deficiency in humanistic considerations. The proposed optimization pathways encompass the integration and enhancement of intelligent teaching resources, the establishment of smart campus sports events, the improvement of teachers digital literacy skills, and the development of robust data protection mechanisms.