Ethics and Generative AI in Startups: A Systematic Literature Review

The rapid advancement of Generative Artificial Intelligence (Generative AI) has transformed the startup ecosystem by driving innovation in business processes. While Generative AI offers significant opportunities for startups by enhancing product development, operational efficiency, and innovation, it simultaneously introduces complex ethical challenges, such as data privacy, transparency, and algorithmic bias. This paper explores the ethical and operational implications of adopting Generative AI within startups, organizations known for their dynamic nature and limited resources. Through a systematic literature review, this study aims to synthesize existing research, identify key themes, and highlight research gaps in the ethical adoption of Generative AI in startups. Framed within Stakeholder Theory, the paper offers a theoretical lens to interpret the findings, emphasizing the importance of balancing diverse stakeholder interests in technology-driven environments. The results are expected to contribute to both academic discourse on responsible AI and practical guidelines for ethical AI integration tailored to startups, fostering sustainable innovation and stakeholder trust.