AI in Advertising: Ethical Risks, Consumer Protection, and Policy Implications

Abstract

By allowing highly targeted ads, tailored campaigns, and automated judgments, artificial intelligence (AI) is revolutionizing the advertising sector. These tools create major ethical questions even if efficiency increases output. They endanger trust, fairness, and consumer rights. The ethical problems in AI-driven advertising—including biased algorithms, manipulative strategies, privacy violations, lack of transparency, and hazards to consumer confidence—are examined in this study article under ethical perspective. AI systems can, for example, use personal data to affect consumer behavior in ways that blur the boundaries between persuasion and manipulation. Trained on faulty data, biased algorithms could ethically reject people or propagate prejudices. The article explores practical solutions to the ethical challenges raised by the use of artificial intelligence into advertising by combining academic study findings and regulatory agency guidelines. One of them is the development of ethical guidelines for the development of artificial intelligence (such as fairness and privacy concerns). By using thorough audit methods, biases can be discovered and transparency increased. The findings emphasize the significance of maintaining a balance between innovative thinking and accountability. Companies can build confidence and prevent harm by emphasizing ethical procedures. These principles include clarifying artificial intelligence-driven decisions, respecting user consent, and limiting data collection. According to the study's conclusions, long-term development in advertising driven by artificial intelligence depends on properly linking ethical duty with technological advancement. Unless these concerns are addressed, businesses run the risk of facing backlash from the public, legal challenges, and the loss of long-term consumer confidence. The ultimate objective is to ensure that the use of artificial intelligence in marketing does not violate the rights of consumers, in addition to maintaining fairness and respect for human dignity.