In the rapidly expanding field of artificial intelligence (AI), unprecedented ethical and legal challenges are posed that require urgent attention. Due to the increasing autonomy, complexity, and integration of AI systems into critical decision-making processes, issues related to accountability, transparency, fairness, privacy, and potential societal impacts are becoming increasingly prominent. Throughout this chapter, we explore the intricate landscape of the ethical and legal considerations surrounding AI. Through a comprehensive discussion of the complex dilemmas it poses, this work offers a comprehensive analysis of its development and deployment. Prior to tackling the core challenges, we examine algorithmic bias, data privacy infringements, attribution of responsibility for AI-associated risks, and the broader societal implications concerning employment and human freedom. Following this, the chapter discusses various ethical frameworks and regulatory approaches that are intended to mitigate these risks. The approaches range from principles-based guidelines and soft-law recommendations to nascent legislative initiatives. Lastly, we discuss important future directions for fostering responsible AI innovation.