There have been several ongoing debates across different professions lately on replacement of human beings with Artificial Intelligence (AI) in workplace so as to reduce cost of production and maximize output due to its proven ability to deliver on human assignments and the reality of its inevitability which will definitely translate to job loss across all sectors of human activities. The use of AI in journalism was received with varying perspectives on its efficient delivery chances cum environmental factors that may likely affect its use; hence, this study examined the prospects, challenges and ethical concerns of AI-based journalism in a technologically developing country. The study employed primary and secondary sources of data; primary data was sourced through questionnaire administered across selected journalists, media practitioners/researchers in Southwest Nigeria while secondary data was sourced through books and other existing literature. Data was analyzed using qualitative analytical method. Findings revealed that the use of AI poses more challenges than prospect to journalism in a technologically developing state like Nigeria with numerous limitations. Aside erratic power supply and poor internet facility, lack of required expertise and cost of procurement, and human factor, among others, AI no doubt has the potentials to enhance production output with human control and feeding it with data (big data) that can be processed faster within shorter time. Replacing human beings with chatbots for fact finding task would be disastrous due to the limitation in its critical thinking ability which might prevent it from depth investigation as well as adhering to the ethical principles of journalism anchored on projection of truth and fairness. This study concluded that AI remains relevant in effective journalism delivery in any environment as a complimentary instrument and never a replacement to human being in an industry charged with the responsibility to elicit and disseminate truth guided by ethical professionalism while its use is limited to some peculiar aspect in the chain of production and not all.