BEYOND AUTOMATION: ETHICAL RISK AND GOVERNANCE OF AI IN BUSINESS PRACTICE

The rapid proliferation of artificial intelligence (AI) across various business functions is fundamentally changing how organizations make decisions. While AI-driven systems promise to improve efficiency and analytical accuracy, their widespread application also introduces new ethical risks related to accountability, fairness, and transparency. This paper explores the ethical impact of AI applications in the business environment by analyzing corporate AI investment trends, the rise of internal ethics projects, and the distribution of ethical risks across different application areas. Using public reporting and governance frameworks, the study finds that ethical risk exposure increases dramatically as AI systems shift from operational support to high-impact decision-making. The findings suggest that responsible AI governance should be integrated into strategic management processes, rather than being viewed as an isolated compliance issue.