The application of artificial intelligence (AI) in early childhood education (PAUD) holds significant potential to enhance learning but also presents substantial ethical challenges. This study focuses on four key issues: children's data privacy, algorithmic bias in AI, reliance on technology and its impact on social interactions, and the digital divide, which hinder the fair and effective implementation of AI. Using a literature review method, this research integrates analyses from scholarly journals, books, and relevant reports to explore these challenges. The findings reveal that protecting children's data requires stricter regulations; algorithmic bias can be addressed through inclusive design; technology reliance must be balanced with social interaction-based approaches; and the digital divide calls for equitable infrastructure interventions. This study underscores the importance of ethical and strategic approaches in transforming AI-based early childhood education to holistically support children's development.
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