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It's no longer a secret that a hassle-free life and better human development index are only possible in smart cities with appropriate and efficient deployment of artificial intelligence (AI)-based technologies where the best results of data analysis are being used. Technology is becoming more productive using circular economy while employing all the dimensions of AI where integration of results is being incorporated as an outcome of data analysis received from different segments i.e., Traffic Management, Public Safety, and Movement, Security and surveillance, Waste Management Systems, or the Energy Management, etc. This chapter specifically talks about areas where AI is facing challenges in the implementation and administration of smart cities while covering the intrinsic challenges faced in specialized domains such as Public Sanitation, Virtual Parking Management, Traffic Congestion, Security Surveillance, and many more discussed as case study relating to the functioning of the circular economy. In the last, we have summarized the impact of AI on the CE and its future scope where AI can play a better role in increased productivity, increased efficiency, robust safety and finally economic benefit for long-term stable economic stability, development and inclusive growth.

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