The study focuses on understanding how the use of generative Artificial Intelligence (AI) can beneficially result in circular supply chain transformation while embedding design intelligence, ethical intelligence, and predictive intelligence within socio-technical systems. This study proposes and validates a model that integrates generative eco-design intelligence, predictive circular supply chain planning, and ethical generative AI awareness, which collectively affect circular supply chain resilience and socio-environmental value realization, mediated by Sustainable process reconfiguration capability and AI-enabled stakeholder co-creation. To test the hypothesis, data were collected from 264 professionals in supply chain and technology-related industries in the USA. As the findings suggest, generative eco-design intelligence, predictive circular supply chain planning, and ethical generative AI awareness significantly enhance sustainable process reconfiguration capability, which drives AI-enabled stakeholder co-creation. A serial mediation model indicates that Generative AI capabilities affect circular supply chain resilience and socio-environmental value realization via sustainable process reconfiguration capability and AI-enabled stakeholder co-creation. To our surprise, the regenerative policy ambidexterity negatively moderates the relationship between AI-enabled stakeholder co-creation and the realization of socio-environmental value. The results provide actionable advice for managers implementing generative AI in sustainable supply chains. Instead of focusing solely on algorithmic efficiency, if an organization can develop reconfiguration capability and engage stakeholders, it would generate systemic sustainability benefits.