Ethical AI and its governance face several critical challenges. **Bias and fairness** are major issues, as AI systems can perpetuate existing biases in their training data, leading to discriminatory outcomes. **Privacy concerns** arise from AI’s need for vast amounts of data, often personal and sensitive, which must be managed responsibly. **Transparency and accountability** are crucial, as many AI models operate as “black boxes,” making it difficult to understand their decision-making processes. Additionally, the rapid development of AI technologies has outpaced governance frameworks, necessitating robust, adaptable regulations to manage risks and ensure ethical deployment across industries. Effective governance is essential to balance innovation with ethical considerations.