Rethinking Resource Usage in the Age of AI: Insights from Europe's Circular Transition

Abstract

The rising presence of artificial intelligence (AI) across European industries is gradually reshaping how societies manage resources, reduce waste, and pursue long-term sustainability. While researchers widely acknowledge the economic and social implications of AI, they have not yet sufficiently explored its contribution to advancing a circular economy. This study examines how varying levels of AI adoption across EU Member States relate to material footprint, resource productivity, waste generation, and recycling performance. The analysis draws on harmonized Eurostat data from 2023, the most recent year for which complete and comparable indicators are available, enabling a coherent cross-sectional perspective that reflects the period when AI began to exert a more visible influence on economic and environmental practices. By combining measures of AI uptake with key circular economy indicators and applying factor analysis, neural network modelling, and cluster analysis, the study identifies underlying patterns and country-specific profiles. The results suggest that higher AI adoption is often associated with greater resource productivity and more efficient material use. However, its effects on waste generation and recycling remain uneven across Member States. These findings indicate that AI can support circular economy objectives when embedded in coordinated national strategies and supported by robust institutional frameworks. Strengthening the alignment between digital innovation and sustainability goals may help build more resilient, resource-efficient economies across Europe.