Consulting Psychology Journal, Vol 77(2), Jun 2025, 131-141; doi:10.1037/cpb0000280
Artificial intelligence (AI) has the potential to impact organizational performance in ways unimagined even a few years ago. Although AI is not new, its rapid advancement has heightened the awareness of its strategic business value concurrent with the ethical implications and potential for harm that AI systems present. The article argues that businesses face ethical dilemmas in parallel with pressure to adopt AI as a business opportunity. It discusses AI’s growing impact on business model innovation, organizational strategy, and operational effectiveness in light of the need for ethical AI systems and practices. Calls for AI governance solutions are mounting and, within organizations, will involve structural, process, and policy considerations likely with ethics as central. These elements are discussed as specialized management practice components unique to AI. Several governance structures and organizational design considerations are discussed as means to enable disciplined, ethical, and responsible AI use. The article concludes with three recommendations for AI deployment that balance ethical considerations with financial profit motives and suggest that the two are not mutually exclusive. (PsycInfo Database Record (c) 2025 APA, all rights reserved)