Ethical Considerations in Artificial Intelligence (AI) Applications in Smart Grid

The rapid development of artificial intelligence (AI) tools, particularly advanced systems like large language models and creative AI programs, has raised urgent questions about how we should ethically develop and manage these technologies. As the global adoption of smart grid and digital power infrastructure accelerates, the role of AI becomes increasingly significant in optimizing operations like forecasting, maintenance, and energy distribution. Despite several works in the literature relating to ethical AI in domains like medicine and agriculture, a framework and recommendation are missing from the power grid lens. This study introduces a framework of ethical principles tailored to the smart grid context. Through this framework, we identify key methods and strategies, present case studies, and discuss challenges associated with ethical AI implementation in smart grids. Our research reveals a constant tug-of-war: while AI can revolutionize how grids operate; we can't ignore the risks of prioritizing efficiency over fairness. We also discuss significant challenges and outline future research directions for ethical AI use in power grid systems.