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Why circularity increasingly starts with AI

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Originally published by ONHN, article written by Willemien Vijvers

Circularity is often seen as something primarily good for the environment, a necessary step to comply with laws and regulations, or a moral choice based on sustainable entrepreneurship. But according to Sönke Petersen from OpenEyz, that image is incomplete. “Circularity is not a cost center,” he states. “It’s actually a way to save costs, increase security of supply, and develop new revenue models.” Especially when entrepreneurs are supported by artificial intelligence.

The Berlin-based expert, who operates at the intersection of the circular economy and AI, shared his vision with a select group of entrepreneurs in December. He did this as part of the new ONHN program “Circular Entrepreneurship: From Idea to Circular Revenue Model.” His message was clear: companies that approach circularity smartly not only strengthen their sustainability profile but also their competitive position.

Sustainability is the new growth model

Petersen begins his presentation with important news. Behind the scenes, “green tech” is growing rapidly. “It’s now the second-fastest-growing industry worldwide,” he says (*Source: World Economic Forum). That growth is partly fueled by artificial intelligence. Estimates suggest that the combination of AI and the circular economy could generate a net profit of €1.8 trillion for Europe by 2030. “The question is no longer whether companies should start doing this,” says Petersen. “The question is how quickly they can get started.”

Petersen knows what he’s talking about. He worked for eighteen years at major car manufacturers like Mercedes and Volkswagen, where he focused on R&D and digital transformation. “I developed digital products and services in and around the car,” he says. “Not to create something ‘fun’ or ‘hip,’ but to solve real customer problems.” This meant working on connected services, shared mobility, and digital solutions for electric driving, among other things. “That’s where I started working with AI. Always with the same approach: talking to people, understanding their pain points, and applying technology to address them.” He’s now applying that approach to the circular economy. “Circular business models are complex,” he says. “That’s precisely why I find them interesting. There’s enormous potential, but it’s not easy to set them up properly. And AI can be an important tool in that regard.”

Circularity isn’t one size fits all

Circularity isn’t automatically suitable for every company, Petersen warns. “The first step for entrepreneurs should always be to investigate what circularity can mean for their own business.” He believes manufacturing companies, in particular, have much to gain. Think of material recovery, reuse of components, or extending the lifespan of products. “If you discover that circularity can help reduce costs or dependence on raw materials, then it’s worthwhile to invest further.”

What Petersen believes is often underestimated is that circularity also generates business benefits. “It’s not just about sustainability,” he says. “It’s also about cost savings, security of supply, and staying relevant in your market.” A good example is the circular product-as-a-service business model. Instead of selling a product and parting ways with the customer, the company remains responsible for maintenance and performance. “For example, you no longer sell a machine, but uptime or capacity,” explains Petersen. “That ensures stable, recurring revenue and a much closer relationship with your customer.” This close collaboration also generates valuable data. How is a product used? Where does it wear out? Which parts fail first? “With AI, you can recognize these patterns and use them to improve your product,” says Petersen. “That makes products more sustainable, easier to repair, and ultimately more recyclable.” Sometimes AI even discovers new revenue opportunities in places entrepreneurs don’t even think of. “Unused assets, residual flows, service loops—AI sees connections we overlook,” he says. “That can yield surprising insights.”

AI as an accelerator, not a goal

According to Petersen, AI should primarily be seen as a tool, not an end in itself. “When companies explore what circularity means for them, they will sooner or later encounter obstacles.” The process becomes too expensive, too labor-intensive, or too complex. That’s where AI can help. A concrete example is the return process for used products. “If that’s done manually, it’s very time-consuming and expensive,” he explains. “With AI, you can automatically assess the condition of a product, determine which parts are reusable, and link that information directly to your IT systems.”

The data required for this depends heavily on the application. Petersen distinguishes roughly two scenarios. The first is a classic machine learning scenario, for example for production lines. “Then you need large amounts of raw data, often from sensors,” he explains. “You have to label and train that data. That’s impactful, but also time-consuming and expensive.” The second scenario revolves around large language models, such as the technology behind ChatGPT. “These are more accessible,” says Petersen. “For tasks like analyzing documents, service reports, or recycling guidelines, they often work immediately. By enriching such models with company or supply chain information, you create a digital assistant with specialized knowledge. That could be a chatbot that knows everything about recycling, maintenance, or legislation. You can get started almost immediately, especially if you already have documentation.”

How to get started

What Petersen often sees in practice is that companies get stuck due to choice overload. “There are so many options that they end up doing nothing,” he says. “Or they get stuck in small experiments without real impact.” His advice: start small. “Start with your customer and your value proposition. What problem are you solving, and how can circularity help? Next, find those areas where AI can truly support you. Organize a session to map out the knowledge and tools already present within the company. Where are the uncertainties or obstacles? And where can AI help take work off your hands? Then choose “quick wins” and improve step by step. Micro-successes keep you focused. You learn more from them than from large, complex plans.” He also applies this approach within the ONHN program. During the workshops, for example, he had participants use ChatGPT to talk to an imaginary customer. “They could interview that customer, just like suppliers or buyers,” he says. “That helps enormously in refining ideas and discovering blind spots.”

Use AI to improve yourself

Finally, Petersen has a personal lesson he wants to share with every entrepreneur. “Don’t use ChatGPT to write texts,” he says. “Use it to improve yourself. By using AI as a sparring partner, entrepreneurs can test their ideas, get feedback, and discover gaps. That has incredible potential.” And for companies, the following applies: use AI to examine your entire process, identify bottlenecks, and improve the system as a whole.

Circularity, Petersen makes clear, is not an abstract ideal. “With the right use of AI, it becomes a concrete and profitable business model. For entrepreneurs who dare to start – small, practical, and focused – a world of opportunities awaits.”

From Idea to Circular Revenue Model

Circular Entrepreneurship: From Idea to Circular Revenue Model is ONHN’s new program for entrepreneurs who want to work more sustainably and circularly, but are looking for direction. Questions such as where lies the market demand, is my idea technically feasible, and how do I make it commercially viable are central. The program offers practical tools, guidance, and a strong network to transform ideas into concrete circular propositions.

The program lasts 100 days and is intensive and practice-oriented. Participants learn together during four afternoons and one evening on-site. These sessions are supplemented with interim contact moments and digital support. The meetings are closely linked to the daily practices of entrepreneurs. Topics range from solving operational challenges with AI, for example, to developing a long-term vision and learning to experiment with circular revenue models on a small scale. They also cover how to respond to major transitions and learn to work with the language of customers, technology, and subsidies.

The first round kicked off in December at IDEA NH in Alkmaar, NL and was enthusiastically received. Registration for the next round is open. Those who would like to learn more and hear from current participants are welcome to attend their closing dinner on Wednesday, March 18, 2026, during Circular Economy Week.


OpenEyz Founder Sönke Petersen

I find strong AI use cases in every sustainability business that significantly reduce effort, enable circular innovation, and increase revenue.

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