From Reports to Action: Leveraging Generative AI for Automated Document Analysis and Circular Economy Recommendation Generation

The transition to a circular economy is crucial for achieving global sustainability goals. However, organizations face significant challenges in finding and translating high-level circular principles into concrete, actionable strategies. This paper demonstrates how generative AI can bridge this gap by analyzing sustainability-related documents and uncovering specific circular economy strategies and actions. Following a Design Science Research approach, we developed a generative AI-based advisory tool that processes corporate sustainability documents, identifies circular economy strategies, and provides data-driven recommendations. The proposed system architecture enables organizations to enhance their circular initiatives by translating sustainability documents into actionable strategies. The findings illustrate the transformative potential of generative AI in addressing sustainability and circular economy challenges. By demonstrating how generative AI can empower organizations to navigate their circular transformation effectively, this paper contributes to both academia and practice.