The integration of artificial intelligence (AI) agents with the Internet of Things (IoT) has marked a transformative shift in environmental monitoring and management, enabling advanced data gathering, in-depth analysis, and more effective decision making. This comprehensive literature review explores the integration of AI and IoT technologies within environmental sciences, with a particular focus on applications related to water quality and climate data. The methodology involves a systematic search and selection of relevant studies, followed by thematic, meta-, and comparative analyses to synthesize current research trends, benefits, challenges, and gaps. The review highlights how AI enhances IoT’s data collection capabilities through advanced predictive modeling, real-time analytics, and automated decision making, thereby improving the accuracy, timeliness, and efficiency of environmental monitoring systems. Key benefits identified include enhanced data precision, cost efficiency, scalability, and the facilitation of proactive environmental management. Nevertheless, this integration encounters substantial obstacles, including issues related to data quality, interoperability, security, technical constraints, and ethical concerns. Future developments point toward enhancements in AI and IoT technologies, the incorporation of innovations like blockchain and edge computing, the potential formation of global environmental monitoring systems, and greater public involvement through citizen science initiatives. Overcoming these challenges and embracing new technological trends could enable AI and IoT to play a pivotal role in strengthening environmental sustainability and resilience.

The transition from fossil fuels to renewable energy (RE) sources is an essential step in mitigating climate change and ensuring environmental sustainability. However, large-scale deployment of renewables is accompanied by new challenges, including the growing demand for rare-earth elements, the need for recycling end-of-life equipment, and the rising energy footprint of digital tools—particularly artificial intelligence (AI) models. This systematic review, following the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) guidelines, explores how lightweight, distilled AI models can alleviate computational burdens while supporting critical applications in renewable energy systems. We examined empirical and conceptual studies published between 2010 and 2024 that address the deployment of AI in renewable energy, the circular economy paradigm, and model distillation and low-energy AI techniques. Our findings indicate that adopting distilled AI models can significantly reduce energy consumption in data processing, enhance grid optimization, and support sustainable resource management across the lifecycle of renewable energy infrastructures. This review concludes by highlighting the opportunities and challenges for policymakers, researchers, and industry stakeholders aiming to integrate circular economy principles into RE strategies, emphasizing the urgent need for collaborative solutions and incentivized policies that encourage low-footprint AI innovation.