Ethical AI is a framework of principles and practices that guide the development, deployment, and use of artificial intelligence in ways that are fair, transparent, and aligned with societal values. Ethical AI focuses on preventing bias, ensuring explainability, protecting privacy, and maintaining accountability across AI systems. It addresses issues such as discrimination in hiring algorithms, fairness in credit scoring, transparency in healthcare decision-making, and unintended harms caused by opaque or biased models. Enterprises implementing ethical AI consider legal and regulatory requirements alongside public trust and reputational impact. As AI adoption grows, ethical AI practices have become critical for balancing innovation with responsibility, ensuring that AI technologies deliver business value without compromising fairness, compliance, or societal trust.