Moderating Role of Artificial Intelligence Tools to Foster Circularity in Businesses

Abstract

This paper examines how an array of disruptive digital technologies can be used in various stages of a business circular supply chain. With increased awareness of the circular economy in various sectors, challenges have arisen that need to be addressed with innovative means. The purpose of this study is to provide a deep knowledge of which digital technologies can foster a seismic shift from linear business models to circular models by closing product and material loops. Big Data, Artificial Intelligence Predictive analysis and material passports are among technologies touted as beneficial to optimize resources and reduce damage to the environment. The study is based on a qualitative methodology with two stages. The first phase examines literature regarding green production, consumption, and recycling methods in accordance with circular economy principles, with special focus placed upon robotic manufacturing and big data for more efficient production and decision-making. The second phase investigates essential enablers as well as barriers in introducing circular economy, with special focus upon those digital technologies which are likely to facilitate the circular value chain. The research concludes that AI technologies positively impact enabling circular business models.