The significance of data ethics in artificial intelligence lies in ensuring responsible and fair use of data while building AI systems. Ethical considerations help address biases that can arise in algorithmic decision-making, thus promoting transparency and accountability. Organizations must develop policies and frameworks that prioritize privacy, informed consent, and data security to mitigate potential harms. As AI-driven applications become more prevalent, understanding data ethics fosters trust among users and stakeholders, ultimately guiding sustainable AI development that benefits society as a whole.