The rapid expansion of Artificial Intelligence (AI) in digital platforms used by youth has created significant challenges related to privacy, autonomy, and data protection. While AI-driven personalization offers enhanced user experiences, it often operates without clear ethical boundaries, leaving young users vulnerable to data exploitation and algorithmic biases. This paper presents a call to action for ethical AI governance, advocating for a structured framework that ensures youth-centred privacy protections, transparent data practices, and regulatory oversight. We outline key areas requiring urgent intervention, including algorithmic transparency, privacy education, parental data-sharing ethics, and accountability measures. Through this approach, we seek to empower youth with greater control over their digital identities and propose actionable strategies for policymakers, AI developers, and educators to build a fairer and more accountable AI ecosystem.