Existing challenges in ethical AI: Addressing algorithmic bias, transparency, accountability and regulatory compliance

Kakarala, Manikanta Rajendra kumar and Rongali, Sateesh Kumar (2025) Existing challenges in ethical AI: Addressing algorithmic bias, transparency, accountability and regulatory compliance. World Journal of Advanced Research and Reviews, 25 (3). pp. 549-554. ISSN 2581-9615

Artificial Intelligence has transformed industries in terms of efficiency, decision-making, and personalization across healthcare, finance, and education. This rapid integration of AI into daily life has also brought forth significant ethical challenges regarding algorithmic bias, transparency, accountability, and regulatory compliance. These come with risks to the equitable application of AI, leading to outcomes that can perpetuate discrimination and systemic injustices. Examples include biased algorithms leading to disparate hiring practices, healthcare access inequity, and credit distribution differences. Most instances of ethical gaps in the use of AI go unmonitored due to a need for well-defined mechanisms for responsibility. Besides that, regulation at a pace equal to AI innovation is a great challenge that creates gaps in oversight and increases risks to privacy, fairness, and other elements of well-being in society. The paper explores these challenges, discussing the causality of the challenges and suggesting practical ways of mitigating them. It converses technical developments in fairness-aware algorithms, explainable AI, and the legal framework of GDPR to make a case for a multi-stakeholder comprehensive approach towards ethical AI. It would call for collaboration among policymakers, technologists, and industry leaders to build public confidence, ensure fairness and align AI progress with societal values. In the final analysis, the findings have underlined the urgent need for ethical foresight to tap into the potential of AI responsibly and equitably.