AI is a transformative technology that emulates human cognitive abilities and processes large volumes of data to offer efficient solutions across various sectors of life. Although AI significantly enhances efficiency in many areas, it also presents substantial challenges, particularly regarding ethics and user privacy. These challenges are exacerbated by the inadequacy of global regulations, which may lead to potential abuse and privacy violations. This study provides an in-depth review of current AI applications, identifies future needs, and addresses emerging ethical and privacy issues. The research explores the important roles of AI technologies, including multimodal AI, natural language processing, generative AI, and deepfakes. While these technologies have the potential to revolutionize industries such as content creation and digital interactions, they also face significant privacy and ethical challenges, including the risks of deepfake abuse and the need for improved data protection through platforms like PrivAI. The study emphasizes the necessity for stricter regulations and global efforts to ensure ethical AI use and effective privacy protection. By conducting a comprehensive literature review, this research aims to provide a clear perspective on the future direction of AI and propose strategies to overcome barriers in ethical and privacy practices.