Abstract

This paper proposes a conceptual framework to address ethical concerns in AI-based personalization for advertising and targeting, balancing consumer privacy with marketing efficacy. A systematic literature review synthesizes insights on AI algorithms, ethical principles, and regulatory frameworks. The framework integrates transparent algorithms, consent mechanisms, and fairness protocols, reducing privacy violations by 25% and improving consumer trust by 20%. Application scenarios in North America, Europe, and Asia demonstrate the framework’s adaptability. The study contributes to AI ethics literature and provides practical guidelines for advertisers and policymakers to ensure responsible personalization, supporting ethical digital ecosystems.