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A conditional random fields (CRF) based method and application of automatic term extraction was proposed in this paper according to the theory of ldquoInformation -Knowledge - Intelligencerdquo transformation. A CRF model was created by training the different fields of the corpus segmented and tagged. Using the model trained by CRF, the documents in a given field were automatically tagged and the terms in the field was automatically extracted with a certain way. On this basis, this method was used in automatic text summarization system to enhance the rate of the excellent summary. The experimental results showed that this method had a relatively high recall rate and accuracy, could effectively increase the performance of automatic summarization system.