American Journal of Advanced Multidisciplinary Research and Innovation
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Volume 8 Issue 5
September-October 2026
Indexing Partners
Circular Economy and Digital Technologies: Leveraging AI, IoT and Data Analytics for Sustainable Resource Management
| Author(s) | Susan Athey |
|---|---|
| Country | United States |
| Abstract | The transition from a linear economic model based on extraction, production, consumption, and disposal towards a circular economy has become increasingly important for addressing resource scarcity, environmental degradation, climate change, and growing waste generation. Digital technologies, particularly Artificial Intelligence (AI), the Internet of Things (IoT), and advanced data analytics, provide important opportunities to accelerate this transition by improving resource visibility, predictive decision-making, product-life extension, waste management, reverse logistics, and industrial efficiency. This study examines how digital technologies can support circular-economy principles and sustainable resource management through a qualitative and conceptual analysis of relevant literature and technological applications. Particular attention is given to AI-enabled predictive maintenance, IoT-based product tracking, intelligent waste classification, digital product passports, resource optimisation, sharing platforms, and data-driven supply-chain management. The analysis demonstrates that digital technologies can improve the identification, monitoring, utilisation, recovery, and reuse of resources across product life cycles. However, implementation is constrained by high investment costs, data fragmentation, interoperability problems, cybersecurity risks, privacy concerns, digital inequality, technological dependence, and the environmental footprint of digital infrastructure itself. The study argues that technology alone cannot create circularity; successful implementation requires integration of digital innovation with circular business models, organisational capabilities, regulatory frameworks, consumer participation, and sustainability-oriented governance. The study concludes that AI, IoT, and data analytics can become critical enablers of circular production and consumption when deployed within a broader framework of responsible and resource-efficient digital transformation. |
| Keywords | Circular Economy, Artificial Intelligence, Internet of Things, Data Analytics, Sustainable Resource Management, Digital Transformation, Resource Efficiency, Waste Management, Digital Product Passport, Predictive Maintenance. |
| Field | Engineering |
| Published In | Volume 5, Issue 2, March-April 2023 |
| Published On | 2023-03-12 |
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E-ISSN XXXX-XXXXCrossRef DOI prefix of AJAMRI is 10.00000/AJAMRI
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