{"id":11812,"date":"2023-01-30T18:11:09","date_gmt":"2023-01-30T16:11:09","guid":{"rendered":"https:\/\/blogit.lab.fi\/labfocus\/?p=11812"},"modified":"2023-09-28T09:25:03","modified_gmt":"2023-09-28T06:25:03","slug":"how-artificial-intelligence-enables-circular-economy","status":"publish","type":"post","link":"https:\/\/blogit.lab.fi\/labfocus\/en\/how-artificial-intelligence-enables-circular-economy\/","title":{"rendered":"How artificial intelligence enables circular economy?"},"content":{"rendered":"\n

Artificial intelligence (AI) is the subset of technologies known as \u201cFourth Industrial Revolution\u201d. AI technologies are used in systems related to human intelligence, for example reasoning and learning functions. AI is considered as a complement for human skills and deals with complexity. AI technologies enable massive data collection which enables pattern recognition, prediction and optimization as well as further recommendation. Through analysis of such data, utilization of AI enables remote monitoring and remote maintenance services. Algorithm development for AI follows three processes, where efficient data collection and data engineering with development and refinement of algorithm leads to better decision making for a specific problem.  In this way, they can enable circular economy in different cycles such as product design phase, use, reuse, remanufacturing, repair, and refurbishing phase, as well as reverse logistics. (Ellen MacArthur 2019.)<\/p>\n\n\n\n

Results of three case studies in Finland<\/h2>\n\n\n\n

In the case study research conducted by Ghoreishi and Happonen (2020) in Finland, they distinguished different roles of AI in circularity as illustrated in the table below (Image 1). Each case company belonged to a different industry, bakery and food services, telecommunication and customer electronics, and lifting businesses. (Ghoreishi & Happonen 2020.)<\/p>\n\n\n\n

\"\"
Image 1. Different roles of Artificial Intelligence in Circular Economy. (Ghoreishi & Happonen 2020)<\/figcaption><\/figure>\n\n\n\n

Although deploying AI technologies brings several opportunities for circular solutions, it requires companies to change their business models and the way they create value in systematic way. Since AI technologies require human for programming and developing algorithms, there should be some precise guidelines on screening and analyzing the data collected by AI to prevent any misguiding information and misuse of data. Unreliable data leads to uncertainty and decreases the level of trust between different partners, stakeholders and consumers that a company collaborates with. For this reason, it is vital to identify the Regulations and policies, Guidelines for sustainable productions, Close collaboration with customers, Stakeholder\u2019s understanding of the solutions and use of AI, and Cost structures of AI technologies. (Ghoreishi and Happonen 2020.)<\/p>\n\n\n\n

Case of Cycled<\/h2>\n\n\n\n
\n