Artificial Intelligence (AI) is revolutionizing the way we recycle and manage plastic waste. By harnessing machine learning, computer vision, and predictive analytics, we’re addressing key challenges like improving waste identification and sorting accuracy and efficiency through advanced sensor fusion and robotic automation. This chapter explores how AI is a vital enabler for waste management and a circular economy. It examines how AI can optimize downstream operations, including predictive maintenance, process control in thermochemical recycling, and using digital twins for system-wide simulation and optimization. The chapter also discusses integrating AI with the Internet of Things (IoT), blockchain, and big data analytics to create intelligent, transparent, and interconnected waste management systems. It critically evaluates the economic, environmental, and socio-ethical challenges that hinder scaling, such as data scarcity and high infrastructure costs. These obstacles can be overcome through collaborative research, standardized data protocols, and inclusive governance. The chapter concludes that AI is not just an incremental upgrade, but a foundational technology that can enable autonomous recycling systems and sustainable material design, fostering a resilient and circular plastics economy.