AI Ethics And Governance In Organization : A Literature Review

Abstract

This literature review examines current research on AI ethics and governance in organizations. Its objectives are to synthesize theoretical perspectives on AI governance, analyze organizational frameworks for ethical decision-making, evaluate stakeholder engagement mechanisms, and identify research gaps. The methodology involved reviewing 18 scholarly articles selected from peer-reviewed journals and conference proceedings published between 2020 and 2025. Sampling focused on articles addressing organizational aspects of AI ethics within management, information systems, and business ethics fields. Data collection entailed a thorough reading and extraction of key themes, theoretical frameworks, and empirical findings from each article. Data analysis used thematic synthesis across five domains: governance structures, ethical frameworks, stakeholder engagement, organizational culture, and performance implications. Findings indicate that effective AI governance requires multi-level approaches combining strategic and operational mechanisms, stakeholder-inclusive processes that extend beyond consultation, and cultural changes that embed ethics into organizational practices. Organizations with comprehensive frameworks show improved trust and reduced risks, though significant implementation challenges remain, including risk individualization and limited authority for ethics professionals. The review concludes that organizations need to develop advanced governance capabilities addressing technical, organizational, and societal dimensions, moving beyond mere compliance toward genuine ethical commitment.