This paper examines the relationship between artificial intelligence (AI) automation, resource efficiency, and circular economy practices in small and medium-sized enterprises (SMEs) operating in the European Union and Serbia. Data were collected through a structured online questionnaire targeting owners and senior managers of SMEs and analyzed using descriptive statistics, correlation analysis, multiple linear regression, and non-parametric group comparisons. The results indicate a strong positive relationship between sustainability-related indicators and circular economy implementation, while AI automation shows a moderate but statistically significant association with circular practices. Regression findings demonstrate that organizational resilience and the regulatory environment significantly enhance the explanatory power of models beyond AI adoption alone. Comparative analysis reveals notable differences in regulatory perceptions between EU and Serbian SMEs, whereas levels of digitalization and sustainability practices remain comparable. The findings confirm that AI-driven digital transformation supports circular economy adoption primarily when embedded within supportive organizational and institutional contexts. Keywords: artificial intelligence; digital transformation; resource efficiency; circular economy; SMEs
Gračanac et al. (Thu,) studied this question.