Digital Technologies and Circular Economy: The Role of IoT and AI in Sustainable Resource Management
Keywords:
Circular economy, IoT, Artificial Intelligence, Resource optimization, Sustainable production, Smart manufacturing, Predictive analytics.Abstract
The circular economy (CE) is gaining global attention as a sustainable alternative to linear production models, emphasizing resource efficiency, waste reduction, and closed-loop systems. Digital technologies, particularly the Internet of Things (IoT) and Artificial Intelligence (AI), are revolutionizing how organizations monitor, analyze, and optimize resource usage. This study explores the integration of IoT and AI into circular economy strategies within the manufacturing and service sectors. Using a mixed-methods approach, including surveys of 60 companies and interviews with 20 industry leaders, the research identifies key applications, benefits, and challenges of these digital tools in promoting sustainable resource management. Findings indicate that IoT-enabled real-time monitoring and AI-driven predictive analytics significantly enhance material efficiency, reduce waste, and enable smarter decision-making in circular supply chains.
