Taking its starting point in a discussion of the concept of intelligence, the chapter develops a philosophical understanding of ethical rationality and discusses its role and implications for two ethical problems within AI: Firstly, the so-called “black box problem” which is widely discussed in the AI community, and secondly, another more complex one which will be addressed as the “Tin Man problem.” The first problem has to do with opacity, bias, and explainability in the design and development of advanced machine learning systems, such as artificial neural networks, whereas the second problem is more directly associated with the prospect for humans and AI of becoming full ethical agents. Based on Aristotelian virtue ethics, it will be argued that intelligence in human and artificial forms should approximate ethical rationality which entails a well-balanced synthesis of reason and emotion.