This chapter discusses the critical aspects of AI safety and ethical considerations in manufacturing. As AI continues to enhance efficiency and drive innovation, ethical deployment has become indispensable for ensuring equitable benefits, fairness, and trust. Industrial manufacturers are leading with 89% reporting the adoption of AI ethicsAI ethics policies as of 2021. This chapter examines key ethical challenges, including algorithmic biases, cybersecurityCybersecurity threats, job displacement, and compliance with global regulations. The chapter outlines strategies for ethical AIEthical AI implementation, by ensuring transparency, interpretability, human oversight, and continuous monitoring. Real-world case studies demonstrate the complexities of ethical dilemmas and their resolutions. Furthermore, the chapter explores the governance framework needed for responsible AIResponsible AI, built on the pillars of people, processes, and technology. Regulatory variations across regions, such as the EU’s AI Act and China’s stringent compliance requirements, underscore the necessity of aligning AI systems with diverse legal landscapes. By prioritizing ethical practices, organizations can safeguard stakeholder trust, address potential risks, and ensure sustainable AI-driven transformations. The chapter concludes with actionable insights for fostering responsible AI use, from designing fairness-aware algorithms to aligning corporate policies with international standards, ensuring that technological advancements contribute positively to society.