AI and the Dynamics of Creative Destruction in the Green Transition Case Study: Municipality of Nea Filadelfeia–Nea Chalkidona, Attica, Greece
Georgia Chronopoulou
ABSTRACT
Joseph Schumpeter’s concept of creative destruction offers a theoretical lens for analyzing processes of structural change through which outdated economic and governance systems are replaced by more innovative and efficient ones. While traditionally associated with industrial innovation, creative destruction has become increasingly relevant in the context of sustainable development and digital transformation. The transition from linear to circular economic models requires not only technological innovation but also the reconfiguration of local governance practices, policy instruments, and citizen participation mechanisms.
Within this framework, artificial intelligence (AI) emerges as a key enabler of circular economy transitions, supporting the optimization of resource flows, predictive management of urban services, and data-driven decision-making. AI-driven systems can enhance transparency, efficiency, and accountability in local governance, while facilitating more inclusive and participatory sustainability initiatives. This article examines how municipalities can leverage AI to implement circular economy principles and promote sustainable green growth, in alignment with the objectives of the European Green Deal.
Using the Municipality of Nea Filadelfeia–Nea Chalkidona as a case study, the article explores AI-supported applications in waste management, bio-waste collection, and citizen engagement. Empirical evidence from existing studies suggests that AI-based waste management systems can increase recycling rates by approximately 20–30% and reduce operational costs by 10–15%, while real-time analytics improve route optimization and service efficiency. At the same time, digital platforms can strengthen citizen participation and social inclusion, contributing to broader environmental and governance goals.
The findings indicate that the convergence of AI technologies, circular economy practices, and participatory local governance can operationalize creative destruction as a catalyst for smart and green urban transitions. While significant opportunities exist, the study also highlights challenges related to institutional capacity, data governance, and equitable implementation. Overall, the article provides insights for policymakers, practitioners, and researchers seeking to align technological innovation with sustainable development objectives under the European Green Deal.
