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How Artificial Intelligence (AI) is revolutionising the Circular Economy

The circular economy has been fundamentally transformed through the inclusion of artificial intelligence (AI) and thus creating sustainability innovations that changed the game in different fields.

The circular economy, which is a model that requires limiting waste and using resources in the most efficient way possible, massively benefits from AI's capability to do processes and analyse huge databases including future trends prediction. The collaboration of AI and the circular economy is the main driver for new sustainable ways of doing business and the most eco-friendly solutions.




Let's take a look at some of the major positive effects of AI on the circular economy.


  • The sector of waste management and recycling is one area in which innovations are evident.

Smart AI programs empower the sorting and processing of recyclable materials entirely. They make machine learning algorithms capable of pulling off more accurate data analysis than the traditional ones in the sphere of waste sorting and detection. These systems use computer vision to identify accurately and separate the plastics, metals, and other materials, which leads to the remarkable improvement in the recycled products' quality.


  • AI is a key factor in the lifecycle management of the product.

AI predictive analysis helps find possible product malfunctions and also maintenance needs of the product. Using predictive analysis, the life cycle of the product can be extended and it will not be necessary to use new resources. This Maintenance-prediction is a great tool for the manufacturing and electronic sectors in particular, where the longevity of equipment is a key element in the reduction of waste. On top of that, AI helps companies to create the product in a way that it will have a smooth transition at the end of life, hence, recycling and easy disassembly will be possible.


  • The fashion industry is another sector where AI is making a significant impact on the circular economy.

AI powered systems examine consumer habits and likings which helps brands to optimise stock levels and avoid overproduction. This method not only diminishes the waste but also enhances the use of environmentally friendly materials. Moreover, AI systems are applied to develop a virtual dressing room, and so, cutting down on returns which are the frequent cause of waste disposal.  Additionally, AI enables companies to design products with end-of-life considerations in mind, facilitating easier disassembly and recycling.


  • In agriculture, AI's role in the circular economy is evident through the optimization of resource use.

AI powered precision agriculture provides automated systems that utilise minimal amounts of water, fertilisers, and pesticides. Thus, such systems help the environment and create less waste. AI instruments can likewise predict crop yields, facilitating farmers to picture and subsequently reduce food wastage.


The challenges accompanying the incorporation of AI in the circular economy are numerous. Issues relating to data privacy, algorithms' transparency, as well as AI technologies' environmental impact, need to be addressed. Yet, the advantages that may come from this are definitely the dominant factor.


An article written for the project Include-Circular Economy.


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