Artificial Intelligence and Circular Economy: A Systematic Literature Review
DOI:
https://doi.org/10.33152/jmphss-10.4.10Keywords:
Artificial intelligence, Circular economy, Systematic literature review, Reuse, Recycling, Remanufacturing, Waste reduction, Resource optimizationAbstract
Research on Artificial Intelligence (AI) for the circular economy remains fragmented across separate literatures on reuse, recycling, remanufacturing, waste reduction, and resource optimization. Following PRISMA 2020, this review synthesizes 53 studies published between 2019 and 2026, all identified through systematic searches of Scopus and Web of Science; a supplementary Google Scholar search yielded no additional eligible studies. Four AI capability clusters recur across the five strategies: predictive assessment, automated classification, process optimization, and system-level integration. Recycling is the most mature area (16 studies, 30.2%). In this area, computer vision and deep learning sorting systems have been validated in real operating settings, although contamination and inconsistent packaging still reduce accuracy. Waste reduction (11 studies) has a growing base of empirical and pilot evidence, with machine learning forecasting reducing overproduction and food waste, but almost entirely in food and retail supply chains. Resource optimization (7 studies) is concentrated in energy-intensive, data-rich manufacturing, where AI supports energy management and fills data gaps in life cycle assessment. Remanufacturing (6 studies) mainly relies on predictive maintenance and remaining-life estimation, while AI-assisted disassembly remains largely conceptual. Reuse (5 studies) is the least developed strategy: it focuses mainly on condition assessment and reverse logistics and pays little attention to organizational strategy. Across all strategies, adoption depends on data quality, organizational readiness and cost, and regulatory and market pressure. The review proposes a framework that positions AI as a shared, cross-cutting enabler of circular economy transformation. It also sets out a research agenda on field validation, cross-strategy capability transfer, and underexplored sectors and regions.
References
Abdullah, N., Shaikh, A. K., & Almusharraf, A. (2025). Towards a sustainable retail food chain: Artificial intelligence driven dynamic pricing and promotions for food waste reduction. Journal of Posthumanism, 5(6), 571–588. https://doi.org/10.63332/joph.v5i6.2073
Ali, G., Asiku, D., Mijwil, M. M., Adamopoulos, I., & Dudek, M. (2025). Fusion of Blockchain, IoT, artificial intelligence, and robotics for efficient waste management in smart cities. International Journal of Innovative Technology and Interdisciplinary Sciences, 8(3), 388–495. https://doi.org/10.15157/IJITIS.2025.8.3.388-495
Alimi, K., Jin, R., Nguyen, B. N., Nguyen, Q., Chen, W., & Hosking, L. (2025). Exploring artificial intelligence applications in construction and demolition waste management: A review of existing literature. Journal of Science and Transport Technology, 5(1), 104–136. https://doi.org/10.58845/jstt.utt.2025.en.5.1.104-136
Arroyabe, M. F., Arranz, C. F. A., Fernandez De Arroyabe, I., & Fernandez de Arroyabe, J. C. (2024). Analyzing AI adoption in European SMEs: A study of digital capabilities, innovation, and external environment. Technology in Society, 79, 102733. https://doi.org/10.1016/j.techsoc.2024.102733
Bitzenis, A., Koutsoupias, N., & Nosios, M. (2025). Artificial intelligence and machine learning in production efficiency enhancement and sustainable development: A comprehensive bibliometric review. Frontiers in Sustainability, 5, 1508647.
Carpitella, S., & Izquierdo, J. (2025). Trends in sustainable inventory management practices in industry 4.0. Processes, 13(4), 1131. https://doi.org/10.3390/pr13041131
Chen, X. (2022). Machine learning approach for a circular economy with waste recycling in smart cities. Energy Reports, 8, 3127–3140. https://doi.org/10.1016/j.egyr.2022.01.193
Chen, Z., & Huang, L. (2021). Digital twins for information-sharing in remanufacturing supply chain: A review. Energy, 220, 119712. https://doi.org/10.1016/j.energy.2020.119712
Commission, E. (2020). A new Circular Economy Action Plan: For a cleaner and more competitive Europe (COM(2020) 98 final) (tech. rep.). Brussels: European Commission.
Dawar, I., Srivastava, A., Singal, M., Dhyani, N., & Rastogi, S. (2025). A systematic literature review on municipal solid waste management using machine learning and deep learning. Artificial Intelligence Review, 58(6), 183. https://doi.org/10.1007/s10462-025-11196-9
Dong, H., Wang, D., & Bashar, S. (2025). E-commerce supply chain resilience and sustainability through AI-driven demand forecasting and waste reduction. Sustainability, 18(1), 360. https://doi.org/10.3390/su18010360
Dudkowiak, A., Grajewski, D., & Dostatni, E. (2025). A systematic literature review of artificial intelligence methods in remanufacturing. IEEE Access, 13, 215897–215910. https://doi.org/10.1109/access.2025.3646974
Dzreke, S. S. (2025). Systematic analysis of IoT, AI, active packaging, and blockchain for food waste reduction across the farm-to-fork supply chain. International Journal of Management Science and Application, 4(2), 95–122.
Farshadfar, Z., Khajavi, S. H., Mucha, T., & Tanskanen, K. (2025). Machine learning-based automated waste sorting in the construction industry: A comparative competitiveness case study. Waste Management, 194, 77–87. https://doi.org/10.1016/j.wasman.2025.01.008
Fuqaha, S., & Nursetiawan, N. (2025). Artificial intelligence and IoT for smart waste management: challenges, opportunities, and future directions. Journal of Future Artificial Intelligence and Technologies, 2(1), 24–46.
Grosse Erdmann, J., Ahmeti, E., Wolf, R., Koller, J., & Döpper, F. (2025). Forecasting return quantity, timing and condition in remanufacturing with machine learning: A mixed-methods approach. Sustainability, 17(14), 6367. https://doi.org/10.3390/su17146367
Habazin, J., Bajor, I., Bajec, P., & Rozic, T. (2025). A review of artificial intelligence applications in cold chain and reverse logistics. Promet - Traffic andTransportation, 37(6), 1409–1440. https://doi.org/10.7307/ptt.v37i6.1332
Handoyo, S., & Sueb, M. (2026). Integrating digital technologies into the circular economy: A systematic literature review of trends, challenges, and opportunities. Circular Economy and Sustainability, 6(2), 111. https://doi.org/10.1007/s43615-026-00876-5
Hernandez, D., Pasha, L., Arian Yusuf, D., Nurfaizi, R., & Julianingsih, D. (2024). The role of artificial intelligence in sustainable agriculture and waste management: Towards a green future. International Transactions on Artificial Intelligence, 2(2), 150–157. https://doi.org/10.33050/italic.v2i2.552
Hong, Q. N., Fàbregues, S., Bartlett, G., Boardman, F., Cargo, M., Dagenais, P., Gagnon, M.-P., Griffiths, F., Nicolau, B., O’Cathain, A., Rousseau, M.-C., Vedel, I., & Pluye, P. (2018). The Mixed Methods Appraisal Tool (MMAT) version 2018 for information professionals and researchers. Education for Information, 34(4), 285–291. https://doi.org/10.3233/efi-180221
Hossain, F., & Hoque, M. E. (2026). Machine learning and artificial intelligence in remanufacturing. In Smart additive remanufacturing (pp. 73–97). Elsevier. https://doi.org/10.1016/b978-0-443-36463-1.00012-x
Jayaprakash, S., Nagarajan, M. D., Prado, R. P. d., Subramanian, S., & Divakarachari, P. B. (2021). A systematic review of energy management strategies for resource allocation in the cloud: Clustering, optimization and machine learning. Energies, 14(17), 5322. https://doi.org/10.3390/en14175322
Jin, S., Yang, Z., Królczykg, G., Liu, X., Gardoni, P., & Li, Z. (2023). Garbage detection and classification using a new deep learning-based machine vision system as a tool for sustainable waste recycling. Waste Management, 162, 123–130. https://doi.org/10.1016/j.wasman.2023.02.014
Jogarao, M., Lakshmanna, B. C., & Naidu, S. T. (2024). AI-enabled circular economy management for sustainable smart cities: Integrating artificial intelligence in resource optimization and waste reduction. In Smart cities and circular economy (pp. 83–96). Emerald Publishing Limited. https://doi.org/10.1108/978-1-83797-957-820241008
Kebisek, M., Spendla, L., Tanuska, P., Hecko, D., Kajan, M., & Moder, M. (2026). Waste contamination detection proposal utilizing radar detection and artificial intelligence. In Focus on artificial intelligence in intelligent systems design (pp. 279–289). Springer Nature Switzerland. https://doi.org/10.1007/978-3-032-20746-3_26
Khang, A., Singh, K., Yadav, M., & Yadav, R. K. (2024). Minimizing the waste management effort by using machine learning applications. In Revolutionizing automated waste treatment systems (pp. 42–59). IGI Global. https://doi.org/10.4018/979-8-3693-6016-3.ch004
Khulbe, M. (2025). AI’s role in the implementation of circular economy practices: Optimising product life cycles, promoting recycling and facilitating the reuse of materials. Industry 5.0: Sustainable Business Practices for a Bright Future, 33(2), 155–173. https://doi.org/10.2478/mspe-2025-0020
Kim, Y. H., Ye, W., Kumar, R., Bail, F., Dvorak, J., Tan, Y., May, M. C., Chang, Q., Athinarayanan, R., Lanza, G., Sutherland, J. W., Li, X., & Nath, C. (2024). Unlocking the potential of remanufacturing through machine learning and data-driven models—A survey. Algorithms, 17(12), 562. https://doi.org/10.3390/a17120562
Li, M., Dai, L., & Hu, Y. (2022). Machine learning for harnessing thermal energy: From materials discovery to system optimization. ACS Energy Letters, 7(10), 3204–3226. https://doi.org/10.1021/acsenergylett.2c01836
Linnenluecke, M. K., Marrone, M., & Singh, A. K. (2019). Conducting systematic literature reviews and bibliometric analyses. Australian Journal of Management, 45(2), 175–194. https://doi.org/10.1177/0312896219877678
Lopes, D., Pires, E. J. S., Filipe, V., Silva, M. F., & Rocha, L. F. (2026). Intelligent and automated technologies for textile recycling pre-processing: A systematic literature review. Technologies, 14(4), 200. https://doi.org/10.3390/technologies14040200
MacArthur, E., & Cowes, U. (2019). Artificial intelligence and the circular economy (tech. rep.). https://tinyurl.com/35hsjbuv
Mailani, D., Hulu, M. Z. T., Simamora, M. R., & Kesuma, S. A. (2024). Resource-based view theory to achieve a sustainable competitive advantage of the firm: Systematic literature review. International Journal of Entrepreneurship and Sustainability Studies, 4(1), 1–15. https://doi.org/10.31098/ijeass.v4i1.2002
Mohammed, M. A., Abdulhasan, M. J., Kumar, N. M., Abdulkareem, K. H., Mostafa, S. A., Maashi, M. S., Khalid, L. S., Abdulaali, H. S., & Chopra, S. S. (2023). Automated waste-sorting and recycling classification using artificial neural network and features fusion: A digital-enabled circular economy vision for smart cities. Multimedia Tools and Applications, 82(25), 39617–39632. https://doi.org/10.1007/s11042-021-11537-0
Neri, A., Cagno, E., Susur, E., Urueña, A., Nuur, C., Kumar, V., Franchi, S., & Sorrentino, C. (2024). The relationship between digital technologies and the circular economy: A systematic literature review and a research agenda. R and D Management, 55(3), 617–713. https://doi.org/10.1111/radm.12715
Nguyen, T. H., Le, X. C., & Vu, T. H. L. (2022). An extended Technology-Organization-Environment (TOE) framework for online retailing utilization in digital transformation: Empirical evidence from Vietnam. Journal of Open Innovation: Technology, Market, and Complexity, 8(4), 200. https://doi.org/10.3390/joitmc8040200
Olawade, D. B., Yadav, R. N., Ijiwade, J. O., & Wada, O. Z. (2026). AI driven circular economy optimization in waste management: A review of current evidence. Environmental Progress and Sustainable Energy, 45(3), e70322. https://doi.org/10.1002/ep.70322
Özsoy, T. (2023). The role of artificial intelligence in facilitating the transition to a circular economy. Nişantaşı Üniversitesi Sosyal Bilimler Dergisi, 11(2), 369–389. https://doi.org/10.52122/nisantasisbd.1345828
Page, M. J., McKenzie, J. E., Bossuyt, P. M., Boutron, I., Hoffmann, T. C., Mulrow, C. D., Shamseer, L., Tetzlaff, J. M., & Moher, D. (2021). Updating guidance for reporting systematic reviews: Development of the PRISMA 2020 statement. Journal of Clinical Epidemiology, 134, 103–112. https://doi.org/10.1016/j.jclinepi.2021.02.003
Palakurti, N. R. (2025). Leveraging AI-driven predictive analytics for demand forecasting, route optimization, and minimizing food waste in the supply chain. In Cutting-edge solutions for advancing sustainable development: Exploring technological horizons for sustainability - part 2 (pp. 157–172). Bentham Science Publishers. https://doi.org/10.2174/9789815322408125010011
Percuoco, M., Ricciardi, I., Muto, V., & Prisco, A. (2026). The intersection of circular economy and artificial intelligence: A bibliometric review. SN Business and Economics, 6(5), 144. https://doi.org/10.1007/s43546-026-01140-6
Popowicz, M., Katzer, N. J., Kettele, M., Schoeggl, J.-P., & Baumgartner, R. J. (2025). Digital technologies for life cycle assessment: A review and integrated combination framework. The International Journal of Life Cycle Assessment, 30(3), 405–428. https://doi.org/10.1007/s11367-024-02409-4
Psarommatis, F., May, G., & Azamfirei, V. (2025). Product reuse and repurpose in circular manufacturing: A critical review of key challenges, shortcomings and future directions. Journal of Remanufacturing, 15(2-3), 273–310. https://doi.org/10.1007/s13243-025-00153-y
Rahman, M. A., Supti, A. M., Bellal, R. B., Bhuiyan, M., Haque, E. A., Bin Shafi, S., Tabassum, S., Hoque, A., & Hossain, M. S. (2025). Machine learning for circular economy: Predicting product lifecycle and optimizing waste management. 2025 International Conference on Advances in Machine Intelligence, and Cybersecurity Technologies, 209–214. https://doi.org/10.1109/amict65811.2025.11402716
Sajadieh, S. M. M., & Noh, S. D. (2025). A review of digital twin integration in circular manufacturing for sustainable industry transition. Sustainability, 17(16), 7316. https://doi.org/10.3390/su17167316
Sauer, P. C., & Seuring, S. (2023). How to conduct systematic literature reviews in management research: A guide in 6 steps and 14 decisions. Review of Managerial Science, 17(5), 1899–1933. https://doi.org/10.1007/s11846-023-00668-3
Shahzad, F., & Ferreira, J. J. M. (2026). Artificial intelligence driven dynamic capabilities: unpacking micro-foundational mechanisms (Head-of-print). Management Decision, 1–22. https://doi.org/10.1108/md-07-2025-2141
Sharma, A., Singh, P. V., & Musunur, L. P. (2020). Artificial intelligence and robotics for reducing waste in the food supply Chain: Systematic literature review, theoretical framework, and research agenda (Head-of-print). OSF Preprints, h3jgb. https://doi.org/10.31219/osf.io/h3jgb
Singh, A. R., Sujatha, M. S., Kadu, A. D., Bajaj, M., Addis, H. K., & Sarada, K. (2025). A deep learning and IoT-driven framework for real-time adaptive resource allocation and grid optimization in smart energy systems. Scientific Reports, 15(1), 19309. https://doi.org/10.1038/s41598-025-02649-w
Singh, J., El-Sappagh, S., Ali, F., Goyal, S. B., & Kumar, M. (2025). Smart waste management: A systematic review and scientometric analysis of artificial intelligence applications. Environment, Development and Sustainability, 1–31. https://doi.org/10.1007/s10668-025-05975-1
Turkolmez, G. B., El Hathat, Z., Subramanian, N., Kuppusamy, S., & Sreedharan, V. R. (2024). Machine learning algorithms for pricing end-of-life remanufactured laptops. Information Systems Frontiers, 1–19. https://doi.org/10.1007/s10796-024-10515-9
Tutore, I., Parmentola, A., di Fiore, M. C., & Calza, F. (2024). A conceptual model of artificial intelligence effects on circular economy actions. Corporate Social Responsibility and Environmental Management, 31(5), 4772–4782. https://doi.org/10.1002/csr.2827
Waltersmann, L., Kiemel, S., Stuhlsatz, J., Sauer, A., & Miehe, R. (2021). Artificial intelligence applications for increasing resource efficiency in manufacturing companies—A comprehensive review. Sustainability, 13(12), 6689. https://doi.org/10.3390/su13126689
Xiao, J., & Huang, K. (2024). A comprehensive review on human–robot collaboration remanufacturing towards uncertain and dynamic disassembly. Manufacturing Review, 11, 17.
Xiong, C., Massonnet, G., & Thevenin, S. (2024). Reinforcement learning methods for preventive maintenance and machine replacement problem with second-hand equipment. 2024 IEEE 20th International Conference on Automation Science and Engineering, 1377–1382. https://doi.org/10.1109/case59546.2024.10711460
Published
Issue
Section
License
Copyright (c) 2026 Asia Bano, Dr. Farooq Ahmed Jam, Naeem Anwar, Dr. Ployrampai Kaewsaeng-on, Hasan Ali

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

