Artificial Intelligence of Things as an Accelerator of Circular Economy in International Business

Abstract

One of the key factors which influences the future of global economy is resource scarcity and the way businesses, policy makers, and environmental scientists respond to climate change by finding solutions for reducing the use of finite natural resources and eliminating waste. With resources becoming scarce, businesses need to rethink and redesign the processes of designing, manufacturing, and delivering products and services. Businesses are responsible for creating products with longer lifetime which use fewer natural resources and are designed for repairability and recyclability. A circular economy model which focuses on designing out waste and pollution, regenerating natural resources, and keeping the materials and products in use offers a means to address environmental problems. In this scenario, businesses redesign their business models according to the principles of the circular economy, which also influences how they conduct international business operations. How internationally operating businesses organize their operations is affected by not only its environmental conscience and need for ecological reconstruction but also technological advancements. With an increasing use of data and information in businesses worldwide, the opportunities digital technologies offer can increase businesses’ environmental sustainability development. Through the utilization of digital technologies, businesses can gain detailed insight into their environmental impacts by transferring, storing, and analyzing data related to circular economy indicators and setting goals to achieve greater circularity. This chapter aims to explore the complementary role of artificial intelligence (AI) and Internet of things (IoT) in improving circularity goals, and how developing artificial intelligence of things (AIoT) in organizations results in more efficient international business.