AI-ENABLED BUSINESS MODELS IN THE CIRCULAR ECONOMY: UKRAINIAN CONTEXT
DOI:
https://doi.org/10.31471/2409-0948-2025-1(31)-102-111Keywords:
digital transformation of business, artificial intelligence, sustainable development of enterprises, circular business models, regression modeling.Abstract
The article under discussion herein expounds upon the conceptual framework for integrating artificial intelligence (AI) technologies into business transformation processes in the context of achieving sustainable development goals through the implementation of circular business models. The primary focus is directed towards the potential of AI as a catalyst for transformative changes in conventional business practices, encompassing the enhancement of energy efficiency, the reduction of greenhouse gas emissions, and the optimization of resource utilization. The author undertakes a thorough analysis of three distinct categories of AI-oriented circular models: narrowing, slowing down, and closing resource flows. The use of intelligent technologies has been demonstrated to facilitate the identification of bottlenecks in business processes, the prediction of maintenance needs through predictive analytics, and the assurance of material reuse through AI-technologies.
The paper critically assesses the prerequisites for implementing such models in the Ukrainian context. The analysis identifies several key barriers to the adoption of these models in Ukraine. These include the low level of digital maturity of enterprises, limited access to modern digital solutions, outdated waste processing infrastructure, a shortage of specialists with relevant digital competencies, and a lack of incentive government policies. Concurrently, a range of opportunities for technological breakthroughs have been identified, including the flexibility of small and medium-sized businesses, the active development of national digital platforms (particularly Diia), and a substantial human capital base in the domains of IT and data analytics.
A conceptual analytical framework is proposed for further empirical research using machine learning methods and synthetic data to assess the impact of AI on sustainable development indicators. The paper goes on to offer a series of recommendations, including the integration of AI into the economy through the support of pilot projects, the development of public-private partnerships, the digitalization of material flows, and the formation of a circular innovation ecosystem. The article posits a theoretical foundation for prospective applied research and the formulation of strategic decisions within the domain of sustainable business. This framework is situated within the broader context of digital transformation and post-war economic recovery.
References
Holzinger A., Kieseburg P., Tjoa A. M. та ін. Digital Transformation for Sustainable Development Goals (SDGs) – A Security, Safety and Privacy Perspective on AI // Lecture Notes in Computer Science. 2021. DOI: 10.1007/978-3-030-84060-0_1.
Matoušková D. Digitalization and Its Impact on Business // Review of Business & Management. 2022. Vol. 18, No. 2. P. 51–67. DOI: 10.18096/TMP.2022.02.03.
Lu S., Serafeim G. How AI Will Accelerate the Circular Economy [Електронний ресурс] // Harvard Business Review. – 2023. – 12 червня. – Режим доступу: https://hbr.org/2023/06/how-ai-will-accelerate-the-circular-economy
Chauhan C., Parida V., Dhir A. Linking circular economy and digitalisation technologies: A systematic literature review of past achievements and future promises // Technological Forecasting and Social Change. 2022. Vol. 177. Article 121508. DOI: https://doi.org/10.1016/j.techfore.2022.121508.
Mboli J. S., Thakker D. K., Mishra J. L. An Internet of Things-enabled decision support system for circular economy business model // Software – Practice and Experience. 2020. DOI: 10.1002/spe.2825.
González-Sánchez Garcia-Muiña, Volpi Pini Ferrari, Settembre-Blundo. Identifying the equilibrium point between sustainability goals and circular economy practices in an industry 4.0 manufacturing context using eco-design // Social Sciences. 2019. Vol. 8, No. 8. Article 241. DOI: 10.3390/socsci8080241.
Varnalii Z., Kulyk P., Nikytenko D., Cheberyako O., Hurochkina V. Circular economy implementation as a strengthening factor in the economic security of Ukraine during the post-war period // IOP Conference Series: Earth and Environmental Science. 2023. Vol. 1126. Article 012006. DOI: https://doi.org/10.1088/1755-1315/1126/1/012006
Mikalef P., Gupta M. Artificial intelligence capability: Conceptualization, measurement calibration, and empirical study on its impact on organizational creativity and firm performance // Journal of Innovation & Knowledge. 2021. Vol. 6, No. 4. P. 217–233. DOI: https://doi.org/10.1016/j.im.2021.103434.
Parida V., Sjödin D., Reim W. Reviewing Literature on Digitalization, Business Model Innovation, and Sustainable Industry: Past Achievements and Future Promises // Sustainability. 2019. Vol. 11. Article 391. DOI: https://doi.org/10.3390/su11020391.
Sjödin D., Parida V., Kohtamäki M. Artificial intelligence enabling circular business model innovation in digital servitization: Conceptualizing dynamic capabilities, AI capacities, business models and effects // Technological Forecasting and Social Change. 2023. Vol. 197. Article 122903. DOI: https://doi.org/10.1016/j.techfore.2022.122903.
Madanaguli A., Sjödin D., Parida V., Mikalef P. Artificial intelligence capabilities for circular business models: Research synthesis and future agenda // Technological Forecasting and Social Change. 2024. Vol. 200. Article 123189. DOI: https://doi.org/10.1016/j.techfore.2023.123189.
Ahmed M. Shuaib, Kareem, Shaply Abdul та ін. Exploring Innovations in AI Shaping Transformative Sustainable Development Goals: An Overview of Challenges and Opportunities. February 2025 [Електронний ресурс]. – Режим доступу: https://www.researchgate.net/publication/388861779
Ellen MacArthur Foundation. Artificial Intelligence and the Circular Economy – AI as a Tool to Accelerate the Transition. Ellen MacArthur Foundation, 2019 [Електронний ресурс]. – Режим доступу: https://www.ellenmacarthurfoundation.org/publications
Downloads
Published
How to Cite
Issue
Section
License
Copyright and Licensing Terms
Copyright Statement
The authors who publish in the journal accept the following conditions:
- The authors retain the copyright and grant the journal the right of first publication, licensed with Creative CommonsCC BY-NC-SA , which permits other people to remix, transform, and build upon the material and use the material for non-commercial purposes, give appropriate credit and distribute the contributions under the same license as the original.
- The authors can conclude additional agreements on the non-exclusive distribution of the journal’s published version of the work (for example, publication of the work in electronic repositories) with an acknowledgment of its initial publication in this journal.
- The authors can upload the published articles on the Internet (for example, in electronic repositories or on web-sites), as it will stimulate fruitful scholarly discussions and increase the citation rates of the published articles.
1.png)
1.png){kind=logo}
