There are peculiar ethical concerns that have emerged with the advent of Artificial intelligence (AI), which adversely affect human wellbeing and governance. The issues include manipulative use of AI for electoral, campaign and administrative purposes, and the politics of AI governance. Others are privacy invasion, deep fake, misinformation, cyber security threats, job loss, and opacity and unjustified actions of and bias by AI. The study argues that the ethical issues of AI usage for various purposes, including governance purposes and human wellbeing, can be addressed significantly through enshrining operational ethical governance and effective financing of AI. The study makes clarifications between ‘ethical governance of AI’ and ‘AI governance’, critiquing the erroneous use of the latter to imply the former. It submits that while ethical governance allows for effective financing of AI and upholds human wellbeing in the era of AI, AI governance alongside unethical adoption and use creates room for ineffective and unjustified financing of AI and the negligence of human wellbeing. It recommends that the government of every nation should be prudent, human-centered, and ethical in its adoption and financing of AI for governance purposes.