The role of Artificial Intelligence, Big Data and the Internet of Things in the acceleration of circular economy

Abstract

Circular economy is the alternative to the current linear (make, use, dispose) model. In business model literature, circular economy has emerged recently, affirming more practical methods to solving business challenges and developing innovative solutions for business processes, directly concerning the climate crisis. Circular business models propose to change the product-oriented business models in which the main objective of firms is maximizing profits by the number of products sold, to a service-based business model in which firms make profits by the services they offer. In this context, business models like Product-Service Systems have been identified as enablers of Circular Economy in companies. As a result of this, data and digital technologies presented by Industry 4.0 or the 4th Industrial Revolution, have proven to be tremendous catalysts of circular economy for industries. But despite this knowledge there is very limited implementation of circular economy processes and of Industry 4.0 tools for its acceleration. Academic literature highlighting the specific co-relation of digital technologies to Circular Economy is also limited. There is still a lot of scope to explore the nexus of these topics, by academicians and industry alike. In an attempt to bridge this gap, this study aims to provide an analysis in the role played by Industry 4.0 tools, especially Artificial Intelligence, Big Data and the Internet of Things, in the implementation and acceleration of Circular Economy. Based on the findings of the empirical research, the role of the selected Industry 4.0 tools is examined and discussed.