The rapid advancement of technology has significantly impacted educational practices, especially within teacher education, where innovative approaches to content delivery are increasingly essential. This chapter examines the integration of generative artificial intelligence (AI) in technology education through the use of AI-generated fairy tales to make complex concepts more engaging and relatable. AI-generated narratives provide rich, personalised educational content—that is, content that is not only immersive and contextually detailed but also adapted to align with individual learning preferences and backgrounds. For example, these narratives can adjust character perspectives, cultural references, and problem-solving scenarios to resonate with diverse student experiences, thereby enhancing engagement and comprehension. This study employs a mixed-methods approach to compare three instructional strategies: traditional content explanations, AI-generated fairy tales, and a combination of both. Findings show that combining traditional content with AI-generated narratives yields the highest levels of student engagement and comprehension, with 89% of students responding positively to the use of narrative-based learning. Key outcomes emphasise the importance of sustaining consistent character narratives, effectively summarising key concepts, offering alternative explanations, and building engaging story arcs. These results suggest that AI-generated narratives enhance learning outcomes in technology education and represent a dynamic, inclusive approach to teaching abstract concepts. The study also highlights potential challenges and ethical considerations associated with AI use in educational contexts.