The rapid advancement of generative artificial intelligence (AI) capable of producing highly realistic images presents profound ethical challenges for journalism. This paper examines the multifaceted ethical landscape surrounding AI-generated imagery in news contexts, synthesizing current scholarship and expert perspectives. It analyzes the significant risks posed by synthetic media, focusing on four key themes: the potential for AI-generated visuals to propagate misinformation and erode public trust; the direct challenges to journalistic integrity and traditional ethical codes demanding truth and accuracy; the complex dynamics of audience perception, media literacy, and trust in an era where distinguishing authentic visuals from fakes is increasingly difficult; and the development of policy recommendations and best practices for navigating this terrain. The paper highlights the urgent need for rigorous verification, clear labeling and disclosure, restricted use in factual reporting, updated internal policies, leveraging authentication technologies, and a continued commitment to core journalistic values to maintain credibility and public trust amidst the transformative impact of AI on visual information.