This research-in-progress article explores how living labs (LLs) as a facilitator of digital transformation (DT) activities should be in line with responsible research and innovation (RRI) principles. This alignment gains special prominence when DT processes leverage AI-driven innovations and have a young citizen demographic asthe focus. In so doing, we propose the new concept called "Responsible Living Labs" (RLL) as an overarching framework for LL researchers and practitioners to ensure transparency, stakeholder engagement, ethical considerations, and sustainability in all stages of LL activities and actions. The research methodology involves conducting a systematic literature review and organizing a workshop at Open Living Lab Days 2023 conference within the context of Interreg Baltic Sea Region project UrbanTestbeds.JR (#S004). This will be done to explore the potential of AI in fostering RRI in LL activities, as well as ethical challenges and other RRI related concerns that LLs are facing when young citizen are engaged. The study will contribute to the body of knowledge by bridging the gap in research on how LL activities can be more responsible and ethical while benefiting from advanced technologies such as AI.