The integration of artificial intelligence into creative industries represents far more than a technological upgrade. It signifies a fundamental transformation in the way we conceive and produce. Through in-depth phenomenological research with 22 creative professionals in Jakarta, this study reveals AI's as a collaborative partner and a disruptive force. While AI enhances creative possibilities, it also raises significant tensions over artistic autonomy, originality, and cultural authenticity. The research makes several crucial contributions to understanding human-AI collaboration. It introduces and elaborates on the concept of 'ethical labor', the deliberate, value-driven work creators perform to manage, correct, and culturally situate algorithmic outputs. This conceptual innovation reveals the often-invisible intellectual and emotional work required to bridge technological capability and human values. The study introduces the Multi-Level Adaptation Model for Ethical Human–AI Co-Creation. It identifies four key dimensions: individual adaptation through skill development, organizational adaptation via structural support, technological adaptation through tool customization, and ethical-strategic adaptation through value alignment. This model is a key theoretical contribution of the paper, derived from the empirical axio-phenomenological research. Rooted in Jakarta's cultural context and the principle of gotong royong (mutual assistance), this framework shows that successful AI adoption requires aligned progress across all levels.