Final answer:
The ethical dilemma posed by learning algorithms centers on their requirement for large datasets, involving private user information, which raises considerable privacy concerns and risks of misuse.
Step-by-step explanation:
The side effect of learning algorithms that creates an ethical dilemma for its users is C: Learning algorithms require large datasets, which means storing identifying information about users. This collection of massive amounts of personal data poses significant privacy concerns, and the potential misuse of this data can lead to ethical issues such as infringement on individual privacy and the potential for cybercrime. Additionally, the inevitability of bias in algorithms and its effects, such as the creation of "filter bubbles", further contributes to the ethical complexities surrounding artificial intelligence (AI) and machine learning.
Legal transparency in the use of AI and the struggle between the benefits to society and potential harms are actively debated. The slow pace at which legal frameworks are developing as compared to the rapid advancement of technology creates a disconnect, making oversight of AI a challenging yet critical endeavor.