1. Introduction
At the forefront of this technological revolution, Artificial Intelligence (AI) emerges as a revolutionary force in marketing that reshapes classical customer engagement and data analysis paradigms. Artificial intelligence (AI) in marketing holds a new turn in which advanced algorithms and an extensive data set play to usher in competitive personalization and efficiency [
1]. This, however, faces a myriad of ethical questions, which need to balance a tightrope between AI potential and ethical marketing; key issues among them are privacy, data security, and algorithmic bias [
1].
The ethical landscape of AI in marketing is said to form an almost thicket complex web of concerns that range far beyond any immediate benefits presented by AI applications. In this specific context, the authors identified the relevance of addressing ethical issues with AI-based predictive marketing. In fact, as it has been described by [
2] it represents far-reaching ethical directives, which shall represent a broad array of issues. On the other hand, [
3] opines on this necessity of ethical alertness and gives reference to its complexities concerning organizational AI ethical programs. Therefore, the use of AI in marketing requires high technology development, coupled with great dedication to the guidelines of morality, which, at the end of it all, will secure the interests of the consumer, and be assured of fairness [
3,
4,
5].
Such an environment would, therefore, warrant a critical look at the ethical underpinning of the rapidly adopted AI in the various marketing strategies. As AI systems become more autonomous in decision-making, the responsibility for such decisions is often greyed out, especially in contexts where such decisions can affect the privacy and consent of consumers. Therefore, this growing reliance on algorithmic processes creates concern concerning the level of transparency and explain ability in AI decision-making that may, in reality, result in a deficit of trust between consumers and brands [
6]. Therefore, to guarantee the main two points: data privacy and greater usage of AI in marketing for individual support, there should be a balance between ethics and innovation [
7]. In this complicated view, using AI in marketing should respond to ethical standards to answer questions related to the usage of AI technologies by developing an ethical framework, which considers both social responsibility and ethical standards for all stakeholders [
8].
In marketing and advertising campaigns there are many issues related to social and ethical issues, which create ethical dilemmas related to data security, privacy, transparency, and bias, which may exist in current society. The newest studies, however, reflect the same pressing question that [
9] has raised, calling for total transparency, fairness, and non-discrimination concerning the data and AI models to assure companies that they include diverse data sources and make regular audits. Moreover, the concept of consumer confidence has become one of the fundamental notions to be handled by AI marketing strategies, and it needs to balance high personalization with due respect for consumers' privacy [
9,
10].
They are responding to some of the challenges with new ideas, such as an independent certification program of an AI-enabled marketing system for organizations. The program aims to develop such practices to compare the marketing systems with set ethical standards, thus building consumer confidence for the equal playing field for companies, irrespective of their size. Such a certification program will give attention to the need for AI marketing practices with the corresponding ethical consideration to make sure that the implementation of technology should proceed for the betterment of the marketing field but not by letting the corresponding ethical consideration of the same be its causality [
11].
If AI-driven pace can only remodel marketing contours, then the increasing prominence of this discourse on ethical consideration underlines the necessity for scholars, practitioners, and policymakers to continue the dialogue. This paper, therefore, draws from insights by [
1,
2] among many others, to surface the ethical dimensions of AI-enabled marketing, including the challenges, opportunities, and directions toward which the discipline is bound to transform. To this end, therefore, the paper attempts to contribute toward the nascent but fast-maturing body of literature on AI ethics in marketing with a nuanced perspective of how the industry should calibrate its interests vs. that of customers and society in general, based on intensive analysis and discussions.
4. Discussion
This solid ethical underpinning foundation on the part of AI, in consideration of privacy, data security, consent, transparency, manipulation, and bias in marketing, goes a long way in affecting deeply consumer trust and brand reputation. In more detail, these ethical dilemmas have implications for the consumer-brand relationship and consequences for long-term business success and, therefore, societal trust in digital technologies.
Impact on Consumer Trust: Consumer trust forms the underlying base of any marketing strategy that is likely to bear fruits and sustain long-term business relationships. However, this trust can be broken through ethical lapses, and AI is no exception. For example, when consumers are informed that their personal data are being used without proper consent or for those they disagreed with, it might be perceived that the brand has betrayed the customers. [
42] emphasizes that in the present-day world, transparency and consent are the centerpiece of keeping consumer trust since most data breaches and information misuse are soaring. Moreover, AI-driven, overly personalized marketing can further manipulate consumer decisions and result in reduced trust. Such algorithms might also leave consumers with a sense of their compromised autonomy and psychological vulnerabilities [
50]. This felt like a sense of manipulation could be the turn on these brands, as consumers would look out for those who respect their autonomous and ethically defined boundaries.
Brand Reputation and Market Position: Brand reputation is directly proportional to how the ethical issues related to AI are handled. For instance, biases in their AI algorithms could be reason enough for public criticism and legal battles, affecting brand image and market standing. [
30] highlights these social implications of algorithmic biases, showing the potential of brands to inadvertently perpetuate discrimination that can have long-term negative implications on brands. On the other hand, companies that confront the ethical issue and best practices of transparency, fairness, and accountability head-on would do more than stop the risk. Ethical demonstration of AI use ensures risk preclusion and predicates brands as industry pace-setters within the responsible innovation category [
48].
Consumer Behavior and Brand Loyalty: Ethical considerations in AI will also affect consumer behavior and brand loyalty. In a world where, with each passing year, consumers are more in tune with and aware of privacy and data security concerns, those brands that take these issues to heart find that it most often provides more loyalty. [
64] hypothesized that consumers' willingness to provide personal information simultaneously is directly related to trust in the brand's privacy practices. Therefore, ethical handling of consumer data may result in it developing into a competitive advantage for the company, as satisfied customers would return and recommend the business to others.
Navigating Ethical Challenges: Best Practices: Companies are increasingly implementing some best practices that would help to alleviate the adverse effects of these AI ethical considerations on consumer trust and brand reputation. Among these measures are clear privacy policies in deployment, transparency in the use of data, and active measures toward avoiding biases in AI algorithms. All these will require getting consumers to be part of decisions that affect how their data are used [
45]. Compliance with the presented practices shows compliance not only with laws but also the seriousness of acting in the direction of ethical principles and helps to increase consumer trust and loyalty. These are serious ethical considerations around AI in marketing with far-reaching implications for consumer trust and brand reputation. When dealing with transparency, fairness, and accountability, those concerns return a more significant result for the company in maintaining positive consumer relations and using AI to further their use in marketing. Some scholars have noted that AI's ethical challenges in marketing, including privacy, security, data manipulation, bias, and data accountability, have elicited different regulatory responses. These would include laws in force, proposed legislation, and guidelines developed to guide the complex frontier of AI ethics for consumer protection. The frame is designed to promote technological innovation and, at the same time, guard it against possible ethical pitfalls.
Existing Laws and Regulations: The example shines through the General Data Protection Regulation (GDPR) of the European Union, which casts a holistic legislative framework towards the protection of personal data and, in essence, embraces almost all ethical considerations regarding AI for marketing. There are strict rules for the protection of data and privacy according to the GDPR, prescribing transparency in processing data, consent, and the right to forget. It introduces the idea of data protection by design and default so as to enforce data protection laws in a manner that AI systems under development take into consideration privacy [
37]. For example, The California Consumer Privacy Act (CCPA) is one of the most relevant legislative acts in the USA that seeks to ensure consumers have more control over their personal information in modern digital conditions. In some ways, the CCPA is a framework for future AI-centric regulation that has to be transparent, accountable, and centered on consumer rights.
Proposed Legislation
The AI Act represents an ambitious attempt to create harmonized EU regulation of AI, as proposed by the European Commission. The first one classifies AI systems into three categories: (1) high-risk applications, which means they are subjected to very stringent requirements for transparency and data quality and also have human oversight [
65]. It showed that the United States Algorithmic Accountability Act would require companies to assess their automated decision systems' biases, impacts, and privacy impacts. This strengthens that there should be mechanisms with oversight and verification features that ensure the AI systems do not discriminate or even conspire to cause harm to the welfare of consumers [
66]. The design of autonomous and intelligent systems should be respectful and ethical and include human rights and well-being, data agency, and transparency, following the subsequent recommendations proposed by the IEEE Global Initiative on Ethics of Autonomous and Intelligent Systems [
67]. In addition, the Partnership on AI—formed by a number of technology companies, academic institutions, and civil society organizations—develops guidelines for the responsible development and deployment of AI technologies. This compels an organization to self-regulate, putting ethical standards above what the law prescribes [
68].
The other ethical implication brought by AI in marketing, therefore, portrays the aspect of recognition and agreement that its impacts need to be adequately managed. While GDPR and CCPA set a high bar for privacy and data protection, proposed legislation and industry guidelines cover a much more comprehensive array of ethical challenges—ranging from bias to manipulation, accountability, and transparency. This is further consolidated by the evolution of AI technologies, where the regulatory environment has to pace up, demanding dialogue, adaptation, and collaboration to allow innovative marketing practices while safeguarding ethical soundness.
Legislation in Jordan
Jordan has been proactively developing the ethical dimension of artificial intelligence (AI) for the country's digital economy and, therefore, has shown a first-mover attitude toward the responsible development and deployment of AI technologies. In this regard, a comprehensive AI Strategy and an Implementation Roadmap for 2023-2027 were prepared after rigorous deliberations with relevant quarters in the country's public and private sectors and academia were launched. All these shall serve as a booster for further developing the AI ecosystem within Jordan across multiple domains, such as capacity building, investment, and scientific research. The same will improve legislative environments, allowing safe use of AI. This clearly points to the need for national development of the skills base in AI, research, development, and usage of AI tools for improved service delivery and public sector effectiveness. This roadmap has the ambition to prepare the ground for an increase in economic growth, attraction of foreign investment, and promotion of innovation and entrepreneurship in the Hashemite Kingdom of Jordan (UNIDO).
Jordan further moots a 'National Charter of Ethics for Artificial Intelligence' in an attempt to develop a framework for the right deployment of AI technologies. This Charter seeks to base AI deployment on the shared ethical foundation of the customs and traditions of society, along with religious and human values. Some of the AI ethical principles include accountability, transparency, respect for the individual's privacy, and underscore recognition of Jordan's commitment to amalgamating AI into the ethical and responsible principled digital landscape of the country [
69]. This approach explains Jordan's general, comprehensive strategy for dealing with the ethical challenges of AI through innovation and ethical dimensions. A clear definition of strategic directions and ethical guidelines empowers Jordan to harness the considerable potential of AI technologies simultaneously, ensuring that these serve the broader interests of society and respect individual rights.
The Ministry of Digital Economy and Entrepreneurship in Jordan has officially announced the Artificial Intelligence (AI) Strategy and its Implementation Roadmap until 2023-2027 during the ninth MENA ICT Forum 2022. Within this strategy, three main prongs have been announced, including capacity-building, scientific research, and legislative initiatives to advance the ethical usage of AI technologies [
70]. As part of it, Jordan has developed a 'National Charter for Artificial Intelligence Ethics,' approved by the cabinet from Jordan's Ministry of Digital Economy and Entrepreneurship. This charter will scaffold the deployment of ethical AI technologies, focusing on transparent accountabilities and respect for individual privacy, reflecting Jordan's commitment to ethical considerations in the digital space [
69].
5. Conclusions
This leads to quite a significant paradigm shift in the way that companies involved in marketing strategies, including Artificial Intelligence (AI); interact with their consumers through personal experiences, practical data analysis, and innovative engagement. However, it brings substantial ethical challenges like privacy, data security, bias, transparency, and accountability. These challenges highlight the intricate relationship between technological innovation and ethical responsibility.
The discussion in our meeting particularly emphasized that strict ethical standards, transparency, objective investment in AI research, and sensitive efforts toward obviating biases in AI algorithms are essential. Therefore, these practices are very important to be followed to gain the maximum advantage of AI in marketing and be cautious about the ethical hurdles that it potentially brings. Further, the regulatory response is developing with the GDPR and proposed AI-specific legislation points to an increasing acknowledgment of the importance of thoughtfully and proactively managing AI's impact.
Therefore, the future of AI in marketing demands a balanced approach that capitalizes on the transformational potential of AI while facing off the meeting of ethical considerations head-on. This balance will shift with technology and changing norms of society; hence, there should be continuous dialogues among the stakeholders: marketers, technologists, ethicists, and regulators. These are the talks that seek to make sure the role played by AI in marketing is diverse from different perspectives, further creating an environment wherein innovativeness goes hand in hand with ethical integrity and respect for consumer rights.
In short, the journey to responsible and ethical AI in marketing is often charted with a collective eye from all the parties involved. This would help firms turn into more consumer-trustable entities, whereby they create stronger brand reputations and, most importantly, a responsible leading example in the digital future of marketing. Collaboration in pursuit of these AI practices will reduce the risk of ethical infractions and open new opportunities for innovations and marketing engagements.
Recommendations
Ethics in AI marketing and handling the dynamics involved in AI-enabled marketing practices need an imperative approach from the company through several methodologies. This included guidelines about the ethical use of AI, increased transparency, investment in independent AI research, and pointing out the potential areas that need further research and development.
Developing Ethical Guidelines for AI Use: Companies should set up sophisticated ethical guidelines on what actually responsible AI will be used for in the marketing practice. The guideline should include regulations with respect to the collection of data, privacy, consent, and the way to avoid biased results. Therefore, [
31] stated that these should be solidly based on broadly accepted ethical considerations, notably fairness, responsibility, and transparency. This is so that AI systems are developed and implemented, thereby ensuring that individual rights are upheld in the course of their use and contribute to the common good for all in society.
Enhancing Transparency with Consumers: Any action is done without being transparent about the lack of an essential bond of trust between the firm and the consumers. In this case, the firms have to explain how AI is applied in their marketing, the ways of data collection and processing, and how the decision has been made. Respectively, transparency under the General Data Protection Regulation (GDPR) respects the data subject's right to be informed about the logic involved in automated decisions affecting him or her [
37]. Such a transparent move would be in compliance not just with regulatory requirements but also as a necessity for good relationships with consumers.
Investing in Unbiased AI Research: Companies should guide research investment in identifying, understanding, and possibly mitigating algorithmic biases through the diversification of algorithms and datasets that would enable companies to detect and eliminate them. This includes diversifying the algorithm and dataset for bias detection and elimination and forming multidisciplinary teams of ethicists, sociologists, cultural experts, and data scientists [
30]. By addressing biases, companies can ensure that their AI marketing strategies are inclusive and equitable.
Suggesting Areas for Further Research and Development: Explainable AI (XAI): XAI describes an area of research that tries to develop AI systems coming to decisions in increased human-like, humanly comprehensible, and interpretable ways, thus assuring more scrutiny and trust over decisions made by AI-based systems [
45]. Further advances will help streamline AI functions for both marketers and consumers.
Consumer Autonomy and Control: Research should look into mechanisms that empower consumers to have some level of control over their data, including options for opting out of inclusion in data collection or change in targeting by personalization algorithms.
Impact Assessment Tools: The development of tool kits on how to carry out an impact assessment of AI marketing strategies on society and ethics may enable the organization to make ethically sound decisions before deployment.
Cross-cultural Ethical Standards: Due to the multi-jurisdictional nature of the operations, some research across cultures may be required. It may help ensure that marketing practices are maintained respectfully and contextually acceptable by the marketing societies.
These will offer the industry practitioner great assistance in steering through the moral issues of AI-enabled marketing. Such strategies and future lines of research and development will prove very useful for industry practitioners to steer successfully between the Scylla and Charybdis of ethical dilemmas surrounding AI-enabled marketing. The initiative is proactive, not against the risk, but in harnessing the transformational power of AI to put into practice more engaging, just, and respectful marketing.