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Ethical Dimensions of AI-Powered Business Decisions Ensuring Transparency and Responsibility
Author(s): Kiran Ari (Dayananda Sagar College of Engineering, India)and U. Roopa (Dayananda Sagar College of Engineering, India)
Copyright: 2026
Pages: 38
EISBN13: 9798260011584
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Abstract
Artificial Intelligence (AI) is reshaping business decision-making by enabling predictive analytics, automation, and real-time insights across domains like finance, marketing, HR, and operations. While enhancing efficiency, AI also raises ethical challenges of transparency, fairness, privacy, and responsibility—especially when opaque algorithms affect vulnerable groups. This chapter explores the ethical dimensions of AI adoption in business through case-based learning, applying principles of justice, autonomy, beneficence, and non-maleficence. Real-world cases—such as biased loan approvals and facial recognition in retail—illustrate dilemmas of bias, consent, and surveillance. Students engage in reflection exercises, dilemma maps, and role-based analysis, guided by ethical frameworks including OECD, IEEE, the EU AI Act, and a proposed model, Ethical Reflexivity in AI (ER-AI). By combining global perspectives, emerging challenges like generative AI, and the intersection of research and business ethics, the chapter equips future scholars and practitioners to navigate AI responsibly.
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