The chapter examines the disruptive nature of Artificial Intelligence (AI) as a driver of the shift to a circular economy and its relevance in managing resources in a more optimistic and sustainable way. It looks into the ways in which AI can solve the problems that are inherent in the application of the principles of the circular economy to enhance the opportunities to collect and analyze data, predictive modelling and optimization, automation and better decision-making. The chapter is a broad overview of the major AI technologies, such as machine learning, computer vision, natural language processing, and robotics and their application to the circular economy. It offers AI-based models of sustainable design and production, recovery and recycling of resources, optimization of the supply chain in a circle, and collaborative consumption. Case studies in reality demonstrate how these models have been implemented in any industry and region such as electronics, automotive, fashion and food sectors together with programs in European Union and China. Lastly, the chapter addresses the obstacles, constraints, and ethical issues that come with implementing AI into the circular economy and outlines the future research agendas, which involve the development of more advanced AI models, the integration of AI with other emerging technologies, and the development of the applicable policy recommendations. The key finding is that AI provides strong solutions and methods to speed up the implementation of the circular practices of the economy and open the path to taking a more sustainable and resource-efficient future, though the challenges related to it should also be considered.