Artificial Intelligence and the Circular Economy
The article examines the potential of artificial intelligence to address the environmental and social impacts of the current industrial economy by supporting a transition to a circular model. It notes that a circular economy, which prioritizes resource decoupling and waste reduction, could generate a net benefit of EUR 1.8 trillion in Europe by 2030, alongside environmental and social improvements.
AI is identified as a key technology for enabling this shift through three primary methods: designing circular products via machine learning, operating circular business models like product-as-a-service through predictive maintenance and inventory management, and optimizing reverse logistics and recycling infrastructure. The report highlights that these applications apply across various sectors, including agriculture and consumer electronics.
Specific estimates suggest that AI could unlock up to USD 127 billion annually in the food and agriculture sector and USD 90 billion annually in consumer electronics by 2030. The authors conclude that AI offers substantial potential to fundamentally reshape economic networks, though this requires open data sharing, collaboration among stakeholders, and inclusive oversight.