The global economy still functions in a linear manner and is characterized by the extraction, production, consumption, and disposal of materials. This is a problem given that we live on a planet with finite resources. Yet the shift to a circular economy, in which businesses recover or recycle resources used in their value chain, has remained elusive, despite offering trillions of dollars in value creation. Barriers include the low residual value of used products, an inability to collect materials, prohibitive costs of separating and processing materials, and lack of traceability of products and materials that are being recycled.
How AI Will Accelerate the Circular Economy
Digital technology will help companies extend the life of products, use fewer materials in production, and use more recycled materials
June 12, 2023
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Summary.
Despite living on a planet with finite resources, our economy remains largely linear and full of single-use products. The shift toward a circular economy, where companies recover or recycle resources, has hit roadblocks, including low value of used products and high recycling costs. Harvard’s D^3 Institute recently highlighted how digital tools and AI can help overcome these hurdles. They discussed three key strategies: extending the life of products, using fewer materials in production, and using more recycled materials. These tech-enabled strategies promise significant financial returns, but unlocking their full potential will need serious investment. Simply put, it’s high time businesses recognized the potential of turning waste into wealth.