As artificial intelligence (AI) deployment is growing exponentially, questions have been raised whether the developed AI ethics discourse is apt to address the currently pressing questions in the field. Building on critical theory, this article aims to expand the scope of AI ethics by arguing that in addition to ethical principles and design, the organizational dimension (i.e. the background assumptions and values influencing design processes) plays a pivotal role in the operationalization of ethics in AI development and deployment contexts. Through (...) the prism of critical theory, and the notions of underdetermination and technical code as developed by Feenberg in particular, the organizational dimension is related to two general challenges in operationalizing ethical principles in AI: (a) the challenge of ethical principles placing conflicting demands on an AI design that cannot be satisfied simultaneously, for which the term ‘inter-principle tension’ is coined, and (b) the challenge of translating an ethical principle to a technological form, constraint or demand, for which the term ‘intra-principle tension’ is coined. Rather than discussing principles, methods or metrics, the notion of technical code precipitates a discussion on the subsequent questions of value decisions, governance and procedural checks and balances. It is held that including and interrogating the organizational context in AI ethics approaches allows for a more in depth understanding of the current challenges concerning the formalization and implementation of ethical principles as well as of the ways in which these challenges could be met. (shrink)