In this chapter, we address the paradox of using AI in corporate ethics and compliance (E&C): while AI effectively enhances E&C functions, it simultaneously introduces ethical risks. We analyze the ethical implications of AI in E&C across five key areas: autonomy, fairness and nondiscrimination, transparency and explainability, security, and well-being. Our analysis reveals how AI systems used for monitoring, prediction, and decision-making can potentially infringe upon employee rights of self-determination, introduce biases, lack an understandable explanation of their operations, compromise personal, informational, and AI system security, and negatively impact workplace well-being. To address these challenges, we provide E&C practitioners with a practical checklist for ethically assessing AI systems before implementation. This tool enables organizations to leverage AI’s benefits in E&C while mitigating its ethical risks, ultimately helping to resolve the paradox of using AI to reduce organizational ethical risks while potentially creating new ones.