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What is ethics in the context of AI?

AI ethics asks whether the use of Artificial Intelligence in a certain form is justifiable — in addition to technical and legal questions. AI sorts applications, prioritizes customer inquiries, recommends prices, evaluates processes, or creates content. As soon as such systems have an impact on people, AI ethics not only considers the benefit for your company but also the consequences for employees, customers, applicants, suppliers, or other affected parties.

It doesn't require an extensive ethics document, but a clear guideline: What problem, what goal, where to start? Terms like fairness, transparency, or responsibility only become tangible in concrete cases – for example, when applicants are systematically rated lower, customers don't know they're interacting with an AI assistant, or an outcome isn't simply dismissed with "The AI decided that."

This gradually results in practices of trustworthy AI, which provide real benefits to your company, ensure trust with customers and employees, and thus strengthen competitiveness.

Two women smiling, text reads "Ethik im Kontext von KI" with logos of Baiosphere and DiNO. Blue geometric background with a play button symbol.

In conversation with Andrea Martin and and Prof. Dr. Elisabeth André

Responsible handling of AI creates trust and is a prerequisite for successful use in the company. Key principles are transparency, fairness, explainability, data protection, and robustness to minimize risks like biases.

Andrea Martin (IBM) and Prof. Dr. Elisabeth André (University of Augsburg) provide a brief insight.

Why is ethics in the context of AI important?

An AI system can work technically reliably and still deliver results that your company does not want to represent – especially when people are evaluated, sorted, or treated differently. Large companies often set up their own ethics or governance bodies for this; for most SMEs, it's enough to clarify the crucial questions directly at the specific application.

It's not just about how often a system is correct, but how serious the consequences of an error weigh: A wrong product recommendation is quickly corrected, a faulty pre-selection of applicants weighs heavier. The question "Is this allowed?" does not automatically answer "Do we want to do it this way?" Legal requirements set the framework within which your company bears its own responsibility. Ethics therefore remains an ongoing process, closely linked to specific AI applications and to be regularly reviewed.

Engaging with ethics is particularly meaningful when a company:

  • Uses AI for the evaluation or pre-selection of people, such as in applications,

  • Allows customers to interact directly with an AI assistant,

  • Makes AI-supported decisions with financial or legal consequences,

  • Uses generative AI for content that could appear real,

  • Is unsure whether a planned AI deployment is socially acceptable, or

  • Aims to deliberately strengthen trust with employees and customers.

The sooner you clarify ethical questions at the specific application, the easier it is to anchor trustworthy AI in everyday work.

Our topic sponsors

Portrait von Prof. Dr. Elisabeth André, Universität Augsburg
Logo Universität Augsbur

Prof. Dr. Elisabeth André

University of Augsburg
Holder of the Chair for Human-Centered Artificial Intelligence, member of the Bavarian Ethics Council and member of the Bavarian AI Council

"Ethical guidelines are key to AI systems that serve people and meet societal demands."

Portrait von Andrea Martin, IBM
Logo IBM

Andrea Martin

IBM
CTO Ecosystem & Associations DACH, Leader IBM Watson Center Munich, IBM Distinguished Engineer and member of the Bavarian AI Council

"Connecting the use of Artificial Intelligence (AI) with ethical aspects is one of my core topics. Because only if we manage to realize and use AI responsibly and in alignment with our values will AI bring the expected benefits for all of us."

Portrait von Prof. Dr. Sven Nyholm, LMU München
Logo LMU München

Prof. Dr. Sven Nyholm

LMU Munich
Professor for AI Ethics

"The ethics of AI shouldn't just address what types of AI technologies may cause harm, present risks, or perhaps should be banned, but also those relating to the kind of future with AI we want as humans: What does a good and meaningful human future with AI look like? Is more AI always better? In what areas of life do we need human and not artificial intelligence?"

KI-Risiken Die Debatte braucht mehr Differenzierung-Stellungnahme KI-Rat

Statement from the Bavarian AI Council on AI risks | September 15, 2026

The Bavarian AI Council classifies current AI risks and advocates for verifiable safety standards and a fact-based debate.

How do I proceed?

In 5 steps to trustworthy AI:
  • Step 1 – Clarify the actual role of the AI

Look at what the AI actually does in the workflow: Does it just provide information, make a recommendation, or does it effectively determine the outcome because its recommendation is almost always adopted? For example, if an AI sorts applications in advance and those rated lower are hardly considered, it effectively decides who gets an interview. With generative AI, there's also the question of whether it creates content that customers might mistake for statements from real people. The crucial factor is the actual impact on people, not just the official purpose.

  • Step 2 – Consider the consequences for those affected and set a clear goal

Formulate a specific, verifiable goal instead of a general intention – for example: "By the end of the month, it will be clarified which applicants perform systematically worse in our AI pre-selection." Clarify who is affected and what consequences arise: Incorrect information in customer service can usually be quickly corrected, a missed offer or candidate elimination weighs heavier. Pay attention to the balance between benefits and possible consequences – if your company saves only a little time while a mistake brings significant disadvantages to others, the use should be critically examined.

  • Step 3 – Choose an application and look for systematic disadvantages

Choose a narrowly defined use case as a starting point, instead of reviewing all AI systems at once. Even good systems cannot completely avoid errors; it becomes critical when certain groups repeatedly perform worse. Therefore, compare typical practical cases instead of just the average success rate: Are certain applicants regularly classified worse? Does speech recognition work equally well for all customer groups? Involve employees who work with the processes—their experiential knowledge recognizes borderline cases that metrics alone do not show.

  • Step 4 – Establish responsibilities and clarify correction process

Appoint a fixed contact person who accompanies the use case, plans the timeline, and reports progress to management. They determine when a human checks and corrects the AI recommendation—a formal approval is not enough if it is always adopted anyway. If people interact directly with AI or its evaluation has significant impacts, it should be clear to them what role the system plays and who to contact in case of problems.

  • Step 5 – Evaluate after 4 to 8 weeks and draw consequences

Set a fixed date at the beginning for the evaluation after 4 to 8 weeks: Was the goal from step 2 achieved? Are systematic disadvantages still apparent? Record the insights in writing. The decision at the end is whether and how your company uses AI—for example, only as a recommendation instead of a decision, or abstention if a minor economic advantage is outweighed by significant disadvantages for others.

Podcast recommendation

Building Trustworthy Open Source AI

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KI-Kompass

STRATEGY

Strategic planning ensures competitive advantages and includes setting goals, identifying use cases, and integrating AI into the overall company strategy.

Data

Data is the foundation of any AI system. Their quality and integrity determine the applications and performance of AI applications.

ECOSYSTEM

In AI use and implementation, collaborations can bring many benefits. A strong ecosystem promotes innovation through the transfer of knowledge, resources, and technologies.

FUNDING AND SUPPORT

The costs of introducing AI vary from free versions to significant investments for developing custom solutions. Various funding opportunities exist to alleviate the investment burden.

CULTURE AND MINDSET

An open and willing-to-learn corporate culture is fundamental for successful AI implementation. The focus is on reducing reservations and fears and involving the workforce in the transformation process.

Organization

The use of AI requires a well-thought-out organizational structure. This forms the foundation for the sustainable development of AI technologies and the effective collaboration between different departments and interdisciplinary teams.

Technical requirements

A robust and flexible infrastructure includes hardware and software components, network infrastructure, and development processes to successfully implement, train, test, and use AI models.

Talents and skills

Development and integration of AI require a qualified team and specific knowledge. This includes both technical skills and strategic and infrastructural understanding.

Law and regulation

Compliance with legal requirements and standards is essential for the use of AI. The EU AI Act has created requirements for AI solutions that will apply in all EU states when creating and using AI.

Ethics

Ethics in AI involves the implementation of moral principles to realize the benefits of AI and reduce risks. Topics such as transparency, fairness, bias avoidance, explainability, and data protection are essential in this context.