When digital technology is deeply integrated with public governance, artificial intelligence has become a key driving force for the transformation of public hospital governance and the upgrade of intelligent services. This article takes public value creation and sustainability as the two main lines, focusing on the practical logic of AI empowering intelligent services in public hospitals, analyzing its paths of public value creation in enhancing the accessibility of medical services, optimizing the allocation of public medical resources, improving service quality and patient experience, and dissecting the core institutional obstacles such as budget investment, personnel adaptation, and data barriers faced by AI empowerment. It proposes corresponding sustainable optimization paths. The main research focus of this article is to solve the institutional predicaments related to the release of public value in intelligent services, release the public value of intelligent services, and assist public hospitals in achieving high-quality development.