Artificial Intelligence Driven Targeting in Digital Advertising: Opportunities and Ethical Challenges

Artificial intelligence has rapidly transformed the digital advertising ecosystem. Machine learning algorithms enable advertisers to analyze large volumes of user data and predict consumer behavior with unprecedented accuracy. AI-driven targeting systems allow companies to deliver personalized advertisements based on browsing patterns, demographic information, location data, and behavioral indicators. While these technologies significantly improve marketing efficiency and advertising performance, they also raise substantial ethical and regulatory concerns. Issues related to privacy, algorithmic bias, data ownership, and transparency have become central topics in the debate surrounding AI-powered advertising. This article examines the opportunities created by artificial intelligence driven targeting in digital advertising and analyzes the ethical challenges that accompany these developments. Through a qualitative analysis of technological trends, marketing strategies, and regulatory frameworks, the study evaluates how AI-based advertising systems reshape the relationship between advertisers, platforms, and consumers.