Circular supply chain management (CSCM) integrates the concept of the circular economy into supply chain management, which offers greater potential and clearer pathways for supply chain resilience, security, and sustainable development. The rapid rise and widespread penetration of artificial intelligence (AI) technology provide new opportunities for building circular supply chains. Using a sample of Chinese listed companies from 2012 to 2023, this paper responds to the call for empirical research that places the circular economy within the context of supply chain management. It enriches the understanding of AI technology’s effects and contextual mechanisms on CSCM. The findings are as follows: First, AI technology facilitates the development of CSCM. Additionally, the top management team’s environmental management experience and supply chain management experience, as well as mimetic pressures, moderate the relationship between AI technology and CSCM positively. Coercive pressure negatively moderate this relationship. Last but not least, customer AI technology enhances suppliers CSCM, which is limited by distance. To sum up, this study significantly contributes to the literature on AI technology and circular supply chains. It provides practical insights to promote the sustainable development of supply chains.