Key Ethical Challenges in AI. AI systems can entrench or amplify societal biases, lack transparency, undermine privacy, and evade accountability unless carefully governed. A core issue is algorithmic bias: AI models trained on historical or unrepresentative data may produce discriminatory outcomes (e.g. higher false-risk scores for Black defendants in the COMPAS recidivism tool propublica.org propublica.org or downgrading female applicants as in Amazon’s hiring