Abstract:
As artificial intelligence (AI) becomes increasingly embedded in enterprise
operations, organisations face not only opportunities for innovation but also a
growing range of ethical challenges. This study explores how core ethical principles,
privacy, security, transparency, fairness, and bias affect day-to-day operational
activities at IFS Software Company in Colombo. While AI adoption promises
enhanced efficiency and decision-making, the absence of clear ethical guidelines in
many Sri Lankan firms raises concerns around accountability and trust. The study
addresses this gap by investigating how AI ethics influence enterprise-level practices
in a local context. A quantitative research approach was employed, using a structured
questionnaire distributed to 132 operational-level employees. Convenience sampling
was used to target individuals most directly involved in AI-supported processes. Data
were analysed using SPSS software, applying descriptive statistics, correlation, and
regression analysis to test five key hypotheses. Findings revealed strong awareness
of privacy and transparency among employees, both of which showed statistically
significant positive relationships with operational effectiveness. However, ethical
dimensions such as security and bias received relatively less emphasis. The study also
noted a general inconsistency in ethical understanding across operational roles,
highlighting the lack of structured ethics training and standardised guidelines. The
research emphasises the need for a comprehensive AI ethics framework within the
organisation. Recommendations include the implementation of formal data protection
policies, regular algorithmic fairness audits, and mandatory training programs for
operational staff. By embedding ethical considerations into daily workflows, IFS
Software Company can not only strengthen internal governance but also align its
technological practices with broader societal values. This study contributes to the
limited literature on AI ethics in Sri Lankan enterprise settings.
