ETHICS BY DESIGN: INTEGRATING LEGAL PRINCIPLES INTO THE MANAGEMENT OF ARTIFICIAL INTELLIGENCE

Abstract

Artificial intelligence (AI) has moved from experimental technology to an integral component of strategic management. Yet, as algorithms increasingly shape human decisions, the question of how to embed ethics and legality into AI systems becomes central. This article examines the concept of Ethics by Design — the proactive integration of ethical and legal principles into the architecture, governance, and operation of AI. By bridging law, management, and ethics, the study argues that sustainable innovation requires more than regulatory compliance: it demands organisational structures that internalise moral and legal accountability. The paper outlines the foundations of ethical AI governance, the managerial implications of algorithmic accountability, and the role of law in ensuring human-centred digital transformation.