The study presents a systematic review that focuses on the involvement of artificial intelligence in revolutionising the clothing sector into a circular economy, where the majority of industries’ transition has benefited from environmental and economic benefits. The study included the PRISMA framework that was used to analyse 10 recent studies from 2021 to 2025 to find AI-driven applications, benefits and barriers to identify the contribution. Results from the survey indicated that AI enhances circular economy involvement through smart textile sorting, predictive design, waste management, and sustainable supply chain management. However, the results also identified prevalent issues such as minimal data availability, high implementation cost with uncertainty and scalability issues. Thus, the study also identified the gaps associated with the post-implementation stage (such as material reuse rate, consumer behavior modeling, closed-loop logistics) as well, while recommending it under areas for future research.
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