The rapid evolution of artificial intelligence has redefined marketing paradigms and transformed consumer engagement mechanisms across industries. As machine learning, predictive analytics, and neural networks are increasingly integrated into advertising, personalization, and consumer data analysis, ethical concerns surrounding privacy, bias, and manipulation have become central to academic and professional discourse. Artificial intelligence in marketing enables companies to collect, analyze, and utilize massive volumes of personal data to predict consumer behavior, customize offers, and improve customer experience. However, these practices raise moral questions about consent, transparency, and fairness. The abstract delineates the conceptual and ethical challenges that emerge when intelligent algorithms shape decision-making, influence purchasing behavior, and create digital consumer profiles. The paper explores how AI tools optimize marketing efficiency but simultaneously threaten the ethical boundaries of autonomy and trust. It examines the duality of AI-driven systems as both enablers of innovation and potential instruments of exploitation, assessing their impact on consumer rights, data security, and societal welfare. By analyzing global standards and corporate frameworks, the study emphasizes the need for a balance between technological advancement and ethical accountability. It further investigates regulatory frameworks such as GDPR, OECD principles, and emerging AI ethics guidelines that attempt to protect users from algorithmic discrimination and data misuse. The findings underline that the integration of ethical principles in AI marketing is not only a legal obligation but also a strategic necessity for sustaining brand reputation and consumer confidence. The research concludes that sustainable marketing in the age of AI must operate within a moral ecosystem that values human dignity, transparency, and inclusivity over mere computational efficiency. Ethical challenges must therefore be viewed as opportunities to re-imagine responsible innovation, wherein technology serves humanity rather than exploiting it.