This paper explores the use of generative AI in social entrepreneurship education through the REFLECT model—a justice-informed ethics framework emphasizing participatory, empathic, and power-sensitive reasoning. Using ChatGPT, we simulated context-rich dialogues based on real-life renewable energy cases to examine ethical dilemmas, systemic failures, and power dynamics. Through iterative refinement, we developed a prompt template capable of producing realistic, grounded dialogues. These were evaluated on three criteria: depth of empathy, systems complexity, and presence of ethical tension. Findings suggest that integrating the REFLECT framework enhanced the pedagogical quality of AI-generated cases, aligning them more closely with the aims of values-based social entrepreneurship education. The approach demonstrates how generative AI can foster critical thinking and ethical reflection, helping students engage with complex social justice and sustainability issues. Our study presents a novel application of AI in the classroom, showing its potential to advance pedagogy in socially responsible entrepreneurship. The paper concludes by exploring the future potential of integrating AI into educational pedagogy, highlighting both its ethical implications and the ongoing need for refinement in its application to ensure responsible and effective use in teaching and learning environments.