Managing Opportunities and Risks of the Digital Age: Ethics and Strategy in Business Transformation

Abstract

This study discusses the role of artificial intelligence (AI) in digital business transformation and the ethical challenges in its implementation. With the increasing adoption of AI in various sectors, companies face a dilemma between efficiency and social responsibility. The study highlights effective business strategies for integrating AI ethically, the balance between regulation and innovation, and the long-term impact of AI on the global economy. The research method used is conventional literature review, which allows for in-depth exploration of the perspectives of social, educational, and technological experts. The study results show that risk-based regulation, a human-in-the-loop (HITL) approach, and transparent policies are essential to ensuring fair and responsible AI implementation. The conclusion confirms that the balance between innovation and ethics is the key to business sustainability in the digital era. Further research is recommended to explore the effectiveness of AI regulations in different countries and their impact on global business competition.