Concerns about prejudice and privacy have become crucial ethical issues as information technology (IT) and artificial intelligence (AI) are increasingly integrated into society. Large volumes of demographic data are processed by AI systems, which frequently pose privacy problems and reinforce prejudices, especially those related to age and gender. This paper explores these ethical issues, concentrating on the effects of biased AI-driven decision-making on facial recognition, healthcare, and employment. This study uses a mixed-methods approach, combining quantitative data from 60 respondents with qualitative literature analysis. The results show a strong relationship between ethical concerns, privacy issues, and biased data gathering. Disenfranchised groups continue to be disadvantaged by AI models based on historically skewed datasets, which exacerbate discrimination and restrict justice in digital decision-making. Even though laws like the CCPA and GDPR offer some control, they are not enough to handle the growing ethical issues surrounding AI. Reducing discrimination and guaranteeing accountability requires using bias detection techniques, fairness-aware machine learning, and transparent AI governance. Giving ethical issues a top priority as AI develops will be essential to creating technology that upholds individual liberties and promotes inclusivity. To guarantee a fair and just technological environment for all users, future developments in...