Privacy Ethics Alignment in AI: A Stakeholder-Centric Framework for Ethical AI

The increasing integration of artificial intelligence (AI) in digital ecosystems has reshaped privacy dynamics, particularly for young digital citizens navigating data-driven environments. This study explores evolving privacy concerns across three key stakeholder groups-young digital citizens, parents/educators, and AI professionals-and assesses differences in data ownership, trust, transparency, parental mediation, education, and risk-benefit perceptions. Employing a grounded theory methodology, this research synthesizes insights from key participants through structured surveys, qualitative interviews, and focus groups to identify distinct privacy expectations. Young digital citizens emphasized autonomy and digital agency, while parents and educators prioritized oversight and AI literacy. AI professionals focused on balancing ethical design with system performance. The analysis revealed significant gaps in transparency and digital literacy, underscoring the need for inclusive, stakeholder-driven privacy frameworks. Drawing on comparative thematic analysis, this study introduces the Privacy-Ethics Alignment in AI (PEA-AI) model, which conceptualizes privacy decision-making as a dynamic negotiation among stakeholders. By aligning empirical findings with governance implications, this research provides a scalable foundation for adaptive, youth-centered AI privacy governance.