Exploring the role of AI capabilities in developing circular intellectual capital: a multi-dimensional perspective

Purpose Due to the changing nature of global industrial digitalisation, the shift toward a circular economy (CE) has turned into a knowledge-based challenge. This paper examines the multi-dimensional relationship between artificial intelligence (AI) capabilities (technological, human, organisational, and data capabilities) and the creation of circular intellectual capital (CIC) (comprising the circular human, structural and relational capital). The study examines how AI contributes to the generation of regenerative value by positioning the concept of AI as a strategic mobiliser of intangible resources. Design/methodology/approach The study is based on a positivist paradigm, and a quantitative design was adopted. Survey data were collected from professionals actively engaged of AI integration operations. The data were analysed using multivariate analysis followed by structural equation modelling (SEM) to confirm the measurement model and test the hypothesised relationships between AI capabilities and CIC dimensions. Findings According to the empirical findings, AI technological capabilities influence all dimensions of CIC, but there is a technological-human gap in the other dimensions. In particular, organisational and data capabilities have a strong positive effect on circular structural and relational capital, but no direct impact on circular human capital. These results imply that, although AI is much more effective in institutionalising circular routines and enhancing external transparency, it does not necessarily translate into a sustainability-focused mindset without direct and skill-based interventions. Originality/value The present research expands the resource-based view to the sphere of circularity, placing AI within the context of valuable and rare resources. It goes beyond the generic concept of green intellectual capital to provide a granular framework for CIC. In practice, it provides guidance for managers in developing economies to coordinate AI infrastructures with cognitive upskilling, so that digital investments would result in environmental sustainability and competitiveness over the long run.