The growth of industry and economy – in current times have been aided mostly by AI to a very great extent.AI goes to shape circular economy and the way we work across sectors and in organisations as well as our everyday lives. The circular economy which is technology dependent, leans heavily on AI for development of new tools, products and applications and enable us to realise greater value addition for the outlay incurred. The Circular economy and industry 4.0 are closely dependent on AI and enables us to go one step to sustainable development. AI here again helps us to tackle these challenges we face on the way. So it is not far off to state the scope of AI in circular economy is crucial in maintaining our growth, and to ensure its sustainability in future. AI in the Context of Circular Economy is more relevant now than earlier for economic development is thus going to be a key factor that can perhaps make our future more sustainable, economically viable protecting our resources with growth aspects. The current pandemic induced behaviour has further accentuated the need for moving the value chain of products and services into the digital mode and again it is AI which is expected to play a key role in the process. The authors have reviewed the existing body of literature in this regard and shares their perspectives on what could possibly be the way AI in circular economy would take in our journey to make the economic development more sustainable and beneficial to various sectors of industry and also for maintaining sustainable living possible. Developments in AI technologies, disruptive innovations are more likely to be arising in our Indian economy, and more particularly in the context of economic development, will act as a growth catalyst. The author also takes a look at the sectors where it is likely that products and services are going more into Circular economy, its implications for the consumers and society at large.