The EPA defines recycling as “the process of collecting and processing materials that would otherwise be thrown away as trash and turning them into new products”. As we can see in the above image, the circular economy includes recycling as a key point, but adds optimized design, efficient manufacturing processes, etc. to bring down lifecycle emissions and waste generation.

Of course, not all waste can be recycled, as the recycling process is physically impossible or too dangerous in some cases. In other cases, waste could be recycled, but the process would be way too costly, which is why some types of waste aren’t recycled.

While the ratio of waste being recycled is growing around the world, the majority of waste is not being recycled yet in many countries, including the United States:

(source: GoodFirms)

That means there’s significant potential to improve recycling rates in the US and on a global scale, in order to drive the circular economy while bringing down emissions and creating jobs and valuable resources that can be reused at the same time. Luckily, artificial intelligence (AI) can help us with recycling in the future.

The Connection Between Recycling And AI

When we think about recycling, many of us will have a picture in mind that isn’t especially “high-tech”. Yet AI, one of the most modern and advanced technologies, will help improve recycling rates in the future.

Oftentimes, recycling is labor intensive, since most of it is done manually, as materials need to be sorted through to find the right materials. This labor of course is costly, so automating this process would allow for much higher recycling volumes and would bring down expenses for the recycling process. With lower cost, it would become economical to recycle additional materials and types of wastes that are currently uneconomical to recycle.

A key hindrance in automating the sorting process in recycling is the fact that humans were needed for their vision. Categorizing different materials, which can be dirty, muddled together, and so on, is very different for machines.

Thanks to AI, massive progress is being made when it comes to computer vision. AI-based algorithms can better identify and sort items compared to older technologies, which means labor intensity declines and processes become quicker and more efficient. As recycling plants upgrade their equipment over the coming years, we can expect substantial progress in both recycling volumes and lower costs.

How To Benefit from the Recycling MegaTrend

Investors can choose among some of our Artificial Intelligence picks to benefit from the broad AI MegaTrend, which also includes the advantages that this technology brings in waste management, recycling, and the burgeoning circular economy.

NVIDIA (NASDAQ: NVDA), of course, is the king in the AI space. Wherever companies or governments utilize advanced AI-based algorithms to solve problems, there’s a high likelihood that NVIDIA’s chips are providing the necessary computing power to train these algorithms.

NVIDIA will benefit from increased usage of AI-based algorithms in recycling, like in all other areas where its chips are needed to power vast data centers. To a lesser degree, other chip companies with AI exposure, such as Qualcomm (NASDAQ: QCOM) and Arm Holdings (NASDAQ: ARM), with their sensors and connectivity solutions, will benefit as well.