Acharya Bangalore B School (ABBS) researcher, Dr. Sengottuvelu C, Professor in Operations & SCM Area at ABBS has highlighted the growing impact of Artificial Intelligence in enabling the shift from traditional linear supply chain to sustainable circular supply chain models, in a recent research paper named, Artificial Intelligence (AI) models for circular supply chains published in Materials Management Review, ISSN: 2320-0758, web link: www.iimm.org/pdf/MMR/2025/MMR-2025-01.pdf . 

The study explores how circular supply chains focused on reducing waste, reusing materials, and extending product life cycles are becoming essential for businesses aiming to strengthen sustainability and improve environmental outcomes. It emphasizes that the integration of AI is playing a pivotal role in accelerating this transition.

According to the research, AI models such as Neural Networks, Decision Trees, Random Forest, Support Vector Machines (SVM), and K-Nearest Neighbours (KNN) are being widely used to enhance demand forecasting, optimize logistics, and improve operational efficiency. These models enable organizations to analyze large volumes of data, identify patterns, and make accurate, real-time decisions across supply chain networks.

The study also highlights the role of emerging digital technologies in strengthening circular supply chains. Blockchain is enabling greater transparency and traceability, while the Internet of Things (IoT) is enhancing visibility and operational control. Together, these technologies are helping organizations build more resilient and efficient supply chain ecosystems.

Companies such as HP, Walmart, and Philips have successfully implemented circular supply chain practices, including recycling, refurbishment, and sustainable sourcing. Global fashion brand Zara has also leveraged AI and real-time data to create an agile and responsive supply chain model.

“This study highlights how AI is not just optimizing supply chains, but redefining them into sustainable, circular ecosystems for the future. By integrating AI with circular supply chain practices, businesses can unlock both economic efficiency and long-term environmental sustainability.”, Dr. Sengottuvelu C, Professor and Head – Research at Acharya Bangalore B School, ABBS.

The research identifies the future role of Explainable AI (XAI) in improving transparency and reducing forecasting errors, thereby strengthening supply chain resilience. As businesses increasingly focus on environmental, social, and governance (ESG) goals, the adoption of AI-driven circular supply chain is expected to grow significantly. The findings reinforce that the convergence of AI and circular economy principles is not just an innovation trend, but a strategic necessity for organizations seeking long-term sustainability and competitive advantage.