This chapter explores the ethical challenges of AI-driven automation in the workplace, addressing the impact of artificial intelligence on employees, organizations, and society. As AI systems become integral to various industries, ethical concerns such as job displacement, algorithmic bias, data privacy, and transparency are increasingly significant. The chapter examines the benefits of AI in enhancing productivity and decision-making while highlighting the potential risks, particularly the displacement of workers and perpetuation of societal biases. It emphasizes the importance of human oversight, employee education, and the creation of ethical frameworks to ensure AI is deployed responsibly. The role of legal and regulatory structures in addressing these challenges is also discussed, alongside the importance of fostering an ethical AI culture within organizations. This comprehensive analysis provides insights into how businesses can navigate the complexities of AI ethics, promoting responsible use of AI technologies while mitigating risks.