Examining the ethical aspects of artificial intelligence (AI) and data science (DS) recognizes their impressive progress in innovation while emphasizing the pressing necessity to tackle intricate ethical dilemmas. The chapter provides a detailed framework for navigating the changing environment, beginning with an examination of the increasing ethical challenges. The study highlights transparency, fairness, and responsibility as crucial for cultivating confidence in AI systems. The chapter emphasizes the urgent requirement to address problems such as algorithmic bias and privacy breaches with strong mitigation techniques. Furthermore, it promotes flexible policies that strike a balance between innovation and ethical safeguards. The examination of societal effects, particularly on various socioeconomic groups, economies, and cultures, is conducted thoroughly, with a focus on equity and the protection of individual rights. Finally, to proactively tackle future ethical challenges in technology, it is advisable to employ proactive solutions such as implementing AI ethics by design.