With unorganized, unplanned and improper use of limited raw materials, an abundant amount of waste is being produced, which is harmful to our environment and ecosystem. While traditional linear production lines fail to address far-reaching issues like waste production and a shorter product life cycle, a prospective concept, namely circular economy (CE), has shown promising prospects to be adopted at industrial and governmental levels. CE aims to complete the product life cycle loop by bringing out the highest values from raw materials in the design phase and later on by reusing, recycling, and remanufacturing. Innovative technologies like artificial intelligence (AI) and machine learning(ML) provide vital assistance in effectively adopting and implementing CE in real-world practices. This study explores the adoption and integration of applied AI techniques in CE. First, we conducted bibliometric analysis on a collection of 104 SCOPUS indexed documents exploring the critical research criteria in AI and CE. Forty papers were picked to conduct a systematic literature review from these documents. The selected documents were further divided into six categories: sustainable development, reverse logistics, waste management, supply chain management, recycle & reuse, and manufacturing development. Comprehensive research insights and trends have been extracted and delineated. Finally, the research gap needing further attention has been identified and the future research directions have also been discussed.