The utilization of artificial intelligence (AI) in marketing holds considerable potential for enhancing efficiency, particularly through the real-time optimization of campaigns, hyper-personalization, and predictive consumer analyses. However, these advancements also introduce significant ethical and regulatory challenges. These concerns often manifest as “ethical costs”, which consumers—whether consciously or unconsciously—bear due to AI-driven marketing practices. As AI-powered profiling enables companies to gain advanced, more nuanced consumer insights, concerns regarding the violation of customer privacy arise. These ethical costs are not always easy to ascertain and thus, there is a considerable need for increased awareness of their implications and impact to foster ethically responsible marketing practices. Against this background, this article examines AI in marketing as a double-edged sword by illuminating its unparalleled efficiency which tends to be inherently accompanied by ethical issues. Thus, this work creates a cornerstone in developing a framework enabling marketers to evaluate and navigate the ethical challenges associated with AI-driven efficiency gains. Thereby, it outlines the roles and function of regulatory agencies and corporate responsibility in the context of ethical AI implementation practices. As a preliminary result, this work identifies key risks and mitigation strategies regarding AI driven marketing processes. Moreover, it is suggested that while AI-driven marketing holds transformative potential, companies must balance efficiency with transparency, fairness, and consumer trust. The paper concludes with avenues for future research, emphasizing the need for greater transparency in algorithmic decision-making and the ethical application of AI in digital marketing.