The current paper presents a comprehensive intelligent system designed to optimize the performance of a barrier eddy current separator (BECS), comprising a conveyor belt, a vibration feeder, and a magnetic drum. This system was trained and validated on real-world industrial data gathered directly from the working separator under 81 different operational scenarios. The intelligent models were used to recommend optimal settings for drum speed, belt speed, vibration intensity, and drum angle, thereby maximizing separation quality and minimizing energy consumption. the smart separation module utilizes YOLOv11n-seg and achieves a mean average precision (mAP) of 0.838 across 7163 industrial instances from aluminum, copper, and plastic materials. For shape classification (sharp vs. smooth), the model reached 91.8% accuracy across 1105 annotated samples. Furthermore, the thermal monitoring unit can detect iron contamination by analyzing temperature anomalies. Scenarios with iron showed a maximum temperature increase of over 20 °C compared to clean materials, with a detection response time of under 2.5 s. The architecture integrates a Digital Twin using Azure Digital Twins to virtually mirror the system, enabling real-time tracking, behavior simulation, and remote updates. A full connection with the PLC has been implemented, allowing the AI-driven system to adjust physical parameters autonomously. This combination of AI, IoT, and digital twin technologies delivers a reliable and scalable solution for enhanced separation quality, improved operational safety, and predictive maintenance in industrial recycling environments.