A conceptual model of artificial intelligence effects on circular economy actions

The circular economy (CE) presents a contemporary approach to integrating economicactivity and environmental well-being sustainably, opposing the linear open-ended sys-tem. However, implementing this paradigm poses challenges, needing a fundamental shiftin companies' strategies and business models. Emerging technology can support compa-nies in transition toward CE and in particular artificial intelligence (AI) can play a crucialrole in facilitating this transition by supporting companies not only in specific CE activitiesbut also in strategically redefining their entire business models. Recognizing the increasingimportance of both AI and CE in management literature, our paper seeks to integratethese two distinct streams of literature. Starting from existing studies, it tries to provide aframework able to understand the role of AI technology into enhancing CE. Through asystematic literature review using the Preferred Reporting Items for Systematic Reviewand Meta-Analysis protocol, using keywords research on three databases, we identified63 articles that concurrently address both CE and AI topics. Subsequent co-occurrenceand content analyses revealed how AI is utilized to bolster CE efforts leveraging theReSOLVE framework (from the acronymous of Regenerate, Share, Optimise, Loop, Vir-tualise, and Exchange)—an operational tool for CE. The last step consists into the develop-ment of a conceptual framework outlining four stages of AI's engagement with the CE:namely System optimization, System redesign, Business Model redesign, and Ecosysteminnovation. From our study emerges that while AI is already recognized for enhancingspecific activities within CE, its potential as a strategic planning tool for business modelredesign and ecosystem innovation remains largely unexplored