The integration of artificial intelligence (AI) and virtual reality (VR) in social work education introduces complex ethical challenges, particularly regarding bias, privacy, and potential manipulation of students’ learning experiences. AI-enhanced VR simulations, while offering immersive environments for practicing social scenarios, can dynamically adapt to student behaviors, raising concerns about subtle coercion in ethical decision-making. Moreover, AI systems trained on biased datasets risk perpetuating harmful stereotypes or reinforcing social inequalities, counteracting social work’s principles of equity and justice. This analysis explores these dilemmas, emphasizing the need for transparent algorithms and ethical frameworks to ensure fairness in AI-generated content. It also highlights the risks of surveillance in AI-enhanced VR, where student data can be collected and analyzed, necessitating robust protection protocols. Beyond identifying risks, the discussion underscores the responsibility of educators to prepare students for ethical AI-enhanced VR use. By promoting interdisciplinary collaboration and ongoing oversight, this chapter calls for a balanced approach that leverages AI-VR innovation while safeguarding the profession’s commitment to empathy, justice, and human dignity.