As artificial intelligence (AI) becomes increasingly embedded in the structures of work, education, and everyday life, questions of ethics and digital wellbeing have grown urgent. Algorithmic bias, surveillance practices, and digital addiction pose profound risks to equity, autonomy, and human flourishing in the AI age. While technical and regulatory frameworks have attempted to mitigate these challenges, they often overlook the embodied, affective, and participatory dimensions of public engagement with AI ethics. This paper proposes participatory theatre as a powerful methodological and pedagogical tool for critically interrogating and reimagining human–AI relations. Drawing on traditions of applied theatre and Theatre for Development, the study demonstrates how performance-based interventions can democratise dialogue, foreground marginalised voices, and cultivate ethical reflexivity among diverse stakeholders. By staging scenarios of algorithmic discrimination, surveillance in learning and workplace contexts, and compulsive digital behaviours, participatory theatre creates a safe yet critical space for collective inquiry and ethical imagination. The paper argues that integrating such performative practices into discussions of AI governance and digital wellbeing not only enhances public literacy but also strengthens inclusive policymaking and educational strategies. Ultimately, this approach situates participatory theatre as both an artistic practice and a socio-ethical instrument for shaping the future of work, education, and wellbeing in an AI-mediated world.