AI-Driven Circular Economy: Optimizing Resource Utilization for Sustainable Growth

Abstract

The transition to a circular economy is crucial for reducing waste and maximizing resource efficiency. This paper explores the role of AI in enabling circular economy principles by optimizing supply chains, enhancing recycling processes, and promoting sustainable product lifecycle management. It examines AI-powered innovations such as material recognition, automated sorting, and predictive maintenance, which contribute to reducing environmental impact. Case studies highlight successful AI-driven circular economy initiatives across industries, addressing challenges related to data transparency, scalability, and regulatory compliance. The paper concludes with recommendations for integrating AI into circular economy strategies to promote long-term sustainability.