This paper summarizes the social function of public art under the perspective of digital technology, takes interactive installation art as the main research path, and proposes the design scheme of interactive installation art in community public space with regard to three aspects: sense of context, sense of user participation, and practicality of the installation. Through the way of practical research, analyze the general overview of the subject area and design an installation art scheme that meets the subject area. Set up an example investigation to research and analyze how public art installations affect the interaction of community users. In response to the two installation art interaction methods, users found the operation of the installation MI to be more difficult than that of the installation MT, with the degree of difficulty for both being 3.43 and 4.016, respectively. As for the level of interest, users are more interested in the device MT with a level value of 3.781. The range of [4.3,4.5] is where the mean values of most measured indicators are concentrated in the satisfaction analysis. Meanwhile, the measured values of all the indicators are greater than 4. The overall design of the interactive installation art in the public space is good, and the community is accepting of it.