Intangible cultural heritage (ICH) carries rich human wisdom and cultural value through its “living” form of craftsmanship and performances. However, it is difficult to preserve and disseminate ICH and its values through traditional means. Therefore, we developed an AI-based immersive virtual reality (VR) digital dissemination system (AI+VR system). In the system, we restored the damaged parts and patterns of ICH images by using adversarial training, objective function, and convergence conditions of generative adversarial networks (GANs), a neural radiance field (NeRF) mathematical model, and a six-degree-of-freedom (6-DoF) kinematic model. The NeRF model was constructed for 3D view synthesis using the volume rendering equation based on the image’s color density, while the 6-DoF kinematic model was established using visual-inertial odometry (VIO) to track viewer perspectives in VR scenes. The outcomes of the AI+VR system were compared with those of traditional ICH display methods (2D videos, images, and text). The developed AI+VR system enhanced real-time interaction frame rates, reduced latency, and automated modeling speed. The system’s hardware adaptability and resource consumption were validated. The AI+VR system can be used for content creation and the experience economy of the cultural industry. The integration of AI and VR in content creation serves as a new means for the dissemination of ICH, proving that technological empowerment can be used for preserving cultural inheritance.