Artificial intelligence (AI) technologies have rapidly evolved from a purely technical field of research into a transformative force affecting organizations, economies, and societies. Advances in machine learning, big data analytics, and autonomous decision-making systems have accelerated the adoption of AI across various sectors, including finance, healthcare, logistics, and public administration. While AI-supported systems provide significant advantages in terms of operational efficiency, automation, predictive analytics, and strategic decision-making, they also create important ethical and governance-related challenges. In this context, issues such as algorithmic bias, lack of transparency, accountability, data privacy, and cybersecurity have become central concerns in both academic and public policy debates. This chapter examines the ethical challenges emerging in the age of artificial intelligence and analyzes the role of corporate governance in ensuring the responsible development and implementation of AI. The study first discusses the concept of AI, organizational AI applications, and algorithmic decision-making processes. Subsequently, major ethical issues such as algorithmic bias, transparency, explainability, data privacy, and data security are evaluated within the framework of AI ethics. In addition, international regulatory and ethical frameworks are examined in order to emphasize the global dimension of ethical AI governance. Furthermore, the study investigates how AI technologies are transforming traditional corporate governance structures. In this context, the changing roles of boards of directors, executive management, and stakeholders in AI oversight processes are also discussed. The findings indicate that sustainable and responsible AI governance requires transparency, accountability, human oversight, stakeholder participation, and interdisciplinary collaboration. Ultimately, the chapter argues that artificial intelligence should not only enhance organizational efficiency but also promote social benefit, ethical responsibility, and sustainable development through robust governance mechanisms.