This study explores how Artificial Intelligence (AI) supports the transition to a sustainable circular economy. A circular economy focuses on reducing waste, reusing resources, and promoting long-term environmental health. The research reviews ten academic papers to understand how AI technologies—like machine learning, smart sensors, and predictive tools— are being used in industries to minimize waste, improve resource use, and enhance supply chain efficiency. Findings show that AI is already being applied successfully in areas like urban waste management, electric vehicle production, and manufacturing. For example, intelligent sorting systems and real-time data analysis help in recycling and reducing environmental impact. The study also highlights how collaborations between governments and industries, such as in Ireland, have led to positive outcomes in sustainability through AI-based solutions. Despite its benefits, the review points out several challenges. These include high costs, data privacy issues, and uneven readiness for adopting AI technologies. Moreover, most current research focuses more on theory than on practical, real-world applications. There is also a lack of studies that connect AI with social, economic, and policy factors in a meaningful way. The paper concludes that AI has great potential to drive sustainability and support circular economy goals. However, for it to be fully effective, more practical research, better policies, and strong cross-sector partnerships are needed. With the right efforts, AI can become a key force in building a greener, more resilient global economy.