The rapid advancement of artificial intelligence (AI) presents significant opportunities and challenges for entrepreneurship. This chapter explores the intersection of ethical practices and AI innovation, focusing on how to balance technological progress with responsible AI development. Key topics include defining ethical AI principles, addressing ethical challenges in AI implementation, and building responsible AI practices. The role of various stakeholders, such as developers, organizations, and regulators, is examined to highlight their contributions to ensuring ethical AI use. Additionally, future directions for AI ethics, including advancements in explainable AI and evolving regulatory frameworks, are discussed. By integrating ethical considerations into AI development, entrepreneurs can drive innovation while upholding principles of fairness, transparency, and accountability.