PURPOSE Artificial intelligence (AI) is reshaping medical education, and manikin-based simulation offers a dynamic platform for exploring AI-augmented clinical decision-making. This innovation integrates DermExpert™, a dermatologic AI decision-support tool, into high-fidelity manikin simulations to help undergraduate medical students develop skills in evidence-informed reasoning, communication, and responsible use of technology. The encounter addresses the gap in experiential AI training by situating learning in a realistic, low-risk environment where learners apply the Master Adaptive Learner (MAL) framework, balancing technological insights with human judgment in patient-centered care. METHODS Grounded in the MAL framework, the simulations fostered critical thinking, self-direction, and reflection across the Plan-Learn-Assess-Adjust phases. Each session began with a SIM Lab pre-brief, followed by rotating groups: one ran the scenario while the other observed, using a structured checklist to guide peer learning. Learners interacted with a high-fidelity manikin to assess presenting symptoms, then applied DermExpert™ to generate AI-supported dermatologic insights and integrate them with clinical cues to form care plans. Students completed two AI-enhanced cases: Managing Atopic Dermatitis Using DermExpert™ and Spotting Danger – Unusual Skin Mask with Surface Change. Students concluded with journaling, self-reflection, team feedback, and faculty-led debrief. RESULTS Rapid self-reflection feedback from 241 students revealed strong engagement with interaction, and critical thinking scored highest. Most reported confidence in applying AI to clinical decisions but needed clearer pre-briefing. Across nine competency domains, nearly all team observations met or exceeded expectations, with communication and teamwork performing best. Thematic analysis revealed that students viewed AI as a cognitive partner rather than a replacement for reasoning. CONCLUSION This approach fosters a balanced perspective, enabling future physicians to leverage AI while maintaining sound judgment. Embedding AI into experiential learning prepares students to navigate technology-driven healthcare while preserving the humanistic core of care. Research funded by the American Association of Colleges of Osteopathic Medicine with IRB approval (2022-102).