The integration of digital technologies, in particular artificial intelligence (AI), into the circular economy (CE) is critical for promoting sustainable development. This paper aims to investigate the role of AI in CE through a systematic literature review, resulting in the development of a conceptual model. Key enablers, including multiple stakeholders such as policymakers, industry, researchers, technology providers and consumers, are identified and AI models used in CE are outlined. In addition, challenges such as the quality and availability of data, skills gaps, integration with existing systems and coordination between various stakeholders are addressed. The benefits of integrating AI are explored at micro, meso, and macro levels, demonstrating major improvements in environmental, economic, and social sustainability. This work highlights the key role that AI can play in increasing resource efficiency, improving waste management and driving innovative business models, thereby contributing to a better sustainable future.