This study aims to explore and analyze the ethical and legal challenges posed by the use of artificial intelligence (AI) in digital businesses, highlighting the need for robust guidelines and frameworks to guide responsible AI implementation. Adopting a qualitative research approach, data were collected through semi-structured interviews with 20 experts from diverse fields related to digital businesses and AI. The content analysis method was employed to identify main themes, categories, and concepts within the ethical and legal realms of AI usage. Two main themes emerged: ethical challenges and legal challenges. Ethical challenges encompassed categories such as privacy violations, discriminatory practices, and AI accountability. Legal challenges included intellectual property rights, data regulations, and surveillance and control issues. The analysis revealed a complex landscape of ethical dilemmas and legal uncertainties that digital businesses face when implementing AI technologies. The study concludes that navigating the ethical and legal challenges of AI in digital businesses requires a multi-faceted approach, emphasizing the importance of developing comprehensive ethical guidelines and legal frameworks. These measures should ensure AI technologies are used in ways that respect human rights and promote fairness and transparency in the digital economy.