The rapid integration of artificial intelligence AI into digital marketing has transformed how organizations engage with consumers through personalization, predictive analytics, and automated decision making. While these technologies enhance efficiency and customer experience, they also raise significant concerns regarding ethics and transparency, particularly in areas such as data privacy, algorithmic bias, and opaque decision making processes. This research paper examines the ethical challenges associated with AI driven digital marketing and emphasizes the importance of transparency as a critical factor in building consumer trust. It proposes a structured framework that integrates ethical principles into marketing strategies, focusing on data protection, informed consent, algorithmic accountability, and explainability. Additionally, the paper presents case studies from leading organizations such as Google, Amazon, Meta, Netflix, and Spotify to illustrate real world applications and challenges. The findings highlight that organizations that prioritize ethical transparency are more likely to build long term trust, improve brand reputation, and achieve sustainable success in the digital economy. Artificial Intelligence, Digital Marketing, Ethics, Transparency, Consumer Trust, Data Privacy, Algorithmic Accountability, Responsible AI 39-40 International Conference on Reimagining Management-Sustainability and Innovation in the AI Era Special Issue Sheenu Tiwari