Ethical AI in Energy: Addressing Data Privacy and Algorithmic Transparency in Smart Systems

This paper explores the integration of ethical AI in smart energy systems to ensure that data privacy and algorithmic transparency are evaluated. Leveraging advances in AI-driven energy management, including predictive analytics and grid optimization, the study addresses critical ethical challenges in data handling and decision-making processes. A mixed methodology combines qualitative reviews of 2022-2025 literature with quantitative assessments of privacy breaches and transparency metrics across 50 smart grid pilots. Results indicate a 12% reduction in privacy incidents with enhanced encryption and a 15% improvement in trust scores through transparent algorithms, validated by real-time X posts and web data. The discussion highlights the need for regulatory frameworks and user consent mechanisms, proposing a blueprint for ethical AI deployment. This work contributes to sustainable energy transitions by balancing innovation with ethical considerations, targeting net-zero goals by 2050.