The circular economy is an economic model based on waste reduction and resource recycling. This model presents both sustainable economic solutions and social challenges. In this context, artificial intelligence demonstrates the potential to optimize waste management processes and reduce associated costs through tools such as machine learning, computer vision, and data analysis. Many challenges to implementing sustainable strategies remain unresolved. The advantages of a circular economy include reducing costs associated with waste management, improving resource efficiency, creating employment opportunities in recycling and reuse sectors, and mitigating adverse environmental impacts. These benefits align with the United Nations’ Sustainable Development Goals (SDGs). To adopt the circular economy as the economic model of the future, significant efforts are required to reform existing practices and formulate more comprehensive policies. As demonstrated by international experiences, economic instruments remain among the most effective means of environmental protection and resource conservation. The analysis concludes with a discussion of CE’s current state and policy recommendations for its future growth. Additionally, research and development investments at the corporate and university levels can enhance domestic technological innovation capacity.