Abstract: The interdisciplinary field of urban design, which bridges urban planning and architecture, is at an early stage of theoretical development and technological exploration, advancing alongside the emergence of a new generation of artificial intelligence. From a design process perspective, the filed primarily faces the challenge of reconciling value rationality and instrumental rationality. In this context, it is necessary to strengthen the cognitive depth and operational scope of urban design through paradigm and digital intelligence empowerment respectively. In terms of value rationality, urban design practice needs to be transformed from a holistic and value-centered approach to an interactive one, achieved through reconstructing operational mechanisms, reshaping value systems, and reorganizing spatial features. In terms of instrumental rationality, it is crucial to transform the digital intelligence in urban design from a data-driven model to an AI-driven one through exploring pathways to incorporate cross-domain technologies, such as artificial life forms, blockchain, and AI-powered image and video generation models. In addition, future-oriented urban design should uphold the purpose of technological development, which should assume auxiliary rather than dominant roles in addressing human needs, enabling effective and full life-cycle management of human settlements.