I'm sure it's already used to some extent, but the possibilities are just about limitless
Right now recycling is a complete joke. Barely anything actually gets recycled, because sorting is extremely costly.
Run the stuff through a few layers of sorting machines, applying (and teaching) models using various inputs (the most basic example is a simple camera, but you can also do stuff with lasers, weight, probably some type of sonar?).
For stuff that isn't easily sortable, have it go through some machine that alters it in some way to increase the sortability (cut it into pieces for example)