AI Usage at a Glance
Oct 4, 2022
RecommendationPractice documented: Etsy uses deep learning to rank search results and tailor the shopping experience to each buyer across its marketplace of 100+ million listings. The system learns from signals like clicks, purchases, and browsing history to decide which items each person sees first.
Practice DocumentedView practice →Nov 2, 2022
RecommendationPractice documented: Etsy allows shoppers to upload a photo — of a piece of furniture, a piece of clothing, or anything else — and find visually similar items from across its marketplace. The feature launched for iPhone users in November 2022 and uses computer vision to match the photo against approximately 100 million listing images.
Practice DocumentedView practice →Apr 20, 2023
ModerationPractice documented: Etsy uses machine learning to automatically scan listings for policy violations — including prohibited items, hate speech, and counterfeit goods — before a human reviewer ever sees them. As of 2021, roughly 95% of flagged listings were identified by automated systems rather than human reports.
Practice DocumentedView practice →May 26, 2023
RecommendationNew evidence: From Image Classification to Multitask Modeling: Building Etsy’s Search by Image Feature
Evidence AddedView practice →Jan 24, 2024
RecommendationPractice documented: Etsy's Gift Mode, launched in January 2024, helps shoppers find gifts by asking a few questions about who they're shopping for. The feature uses machine learning and OpenAI's GPT-4 to match the recipient to one of 200+ gift-buyer personas and surface tailored product suggestions from Etsy's catalog.
Practice DocumentedView practice →Jun 7, 2024
Data AnalysisPractice documented: Etsy uses large language models to automatically read seller listing titles, descriptions, and photos and pull out structured product details — like size, color, material, and style — that sellers did not explicitly fill in. This expanded complete attribute coverage in key categories from 31% of listings to 91%.
Practice DocumentedView practice →Jul 9, 2024
OtherPractice documented: Etsy introduced formal "Creativity Standards" in July 2024, requiring all sellers to label their listings by how much human involvement went into creating the item. Sellers who use AI tools to generate artwork or designs must disclose this in their listings. Items made entirely by AI prompts — with no additional human creative input — are also permitted under the "Designed by a seller" category, but AI prompt bundles (selling the prompts themselves) are banned.
Practice DocumentedView practice →Aug 6, 2024
ModerationNew evidence: Machine Learning in Content Moderation at Etsy
Evidence AddedView practice →Feb 19, 2025
RecommendationNew evidence: UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Evidence AddedView practice →Mar 10, 2025
RecommendationPractice documented: Launched in April 2025, Etsy's "algotorial curation" system combines human trend experts with machine learning to build browseable themed collections — like "Modern Farmhouse" or "Literary Girl." Human editors hand-pick roughly 50 seed items per collection, then machine learning expands each collection to around 1,000 items tailored to each shopper.
Practice DocumentedView practice →Apr 16, 2025
RecommendationNew evidence: The starting point for special: Etsy unveils new AI-powered discovery experience
Evidence AddedView practice →Apr 30, 2025
Customer SvcPractice documented: Etsy operates an AI chatbot that handles customer support questions as the first point of contact for about two-thirds of buyers in the United States and Canada seeking help from the company. The chatbot handles common questions about orders, refunds, payments, and accounts before routing complex issues to human agents.
Practice DocumentedView practice →May 28, 2025
ModerationNew evidence: Building a More Trusted and Transparent Marketplace, Together
Evidence AddedView practice →Sep 3, 2025
RecommendationNew evidence: Building Etsy Buyer Profiles with LLMs
Evidence AddedView practice →Sep 5, 2025
ProductivityPractice documented: Since September 2025, Etsy has offered sellers a growing set of optional AI tools to help manage their shops. These include an AI writing assistant that drafts replies to buyer messages, AI-generated suggestions for listing titles, automatic summaries of customer reviews, and smarter delivery time estimates — all designed to reduce the time sellers spend on routine tasks.
Practice DocumentedView practice →Sep 29, 2025
ProductivityNew evidence: How Etsy Uses AI to Support Sellers
Evidence AddedView practice →Sep 29, 2025
OtherPractice documented: Starting in September 2025, Etsy partnered with OpenAI, Google, and Microsoft to let shoppers discover and buy Etsy products directly inside AI chat tools like ChatGPT, Google's Gemini, and Microsoft Copilot — without leaving those apps. This type of integration, where an AI assistant completes a purchase on a user's behalf, is called agentic commerce.
Practice DocumentedView practice →Oct 13, 2025
Data AnalysisNew evidence: Understanding Etsy’s Vast Inventory with LLMs
Evidence AddedView practice →In 2023, Etsy formed a company-wide working group to oversee its use of AI across its marketplace and internal operations. In 2024, the company formally defined six values to guide responsible AI use: Respect, Fairness, Reliability, Transparency, Privacy, and Security.
The cross-functional responsible AI working group reports to Etsy's Chief Technology Officer and oversees AI use across Etsy's marketplace platforms, internal operations, and third-party partnerships. Etsy's FY2023 annual report was the first to formally disclose the working group's formation. The FY2024 annual report expanded disclosure to include the six guiding values. Etsy's SEC filings from FY2023 onward also identify AI as a material risk factor, noting that AI systems "are complex, subject to increasing litigation and regulatory scrutiny, and may have errors or inadequacies that are not easily detectable." Etsy's FY2024 10-K also cites compliance with evolving AI regulations globally as an ongoing risk.
Etsy allows shoppers to upload a photo — of a piece of furniture, a piece of clothing, or anything else — and find visually similar items from across its marketplace. The feature launched for iPhone users in November 2022 and uses computer vision to match the photo against approximately 100 million listing images.
Launched in April 2025, Etsy's "algotorial curation" system combines human trend experts with machine learning to build browseable themed collections — like "Modern Farmhouse" or "Literary Girl." Human editors hand-pick roughly 50 seed items per collection, then machine learning expands each collection to around 1,000 items tailored to each shopper.
Etsy's Gift Mode, launched in January 2024, helps shoppers find gifts by asking a few questions about who they're shopping for. The feature uses machine learning and OpenAI's GPT-4 to match the recipient to one of 200+ gift-buyer personas and surface tailored product suggestions from Etsy's catalog.
Etsy uses deep learning to rank search results and tailor the shopping experience to each buyer across its marketplace of 100+ million listings. The system learns from signals like clicks, purchases, and browsing history to decide which items each person sees first.
In 2023, Etsy formed a company-wide working group to oversee its use of AI across its marketplace and internal operations. In 2024, the company formally defined six values to guide responsible AI use: Respect, Fairness, Reliability, Transparency, Privacy, and Security.
Etsy introduced formal "Creativity Standards" in July 2024, requiring all sellers to label their listings by how much human involvement went into creating the item. Sellers who use AI tools to generate artwork or designs must disclose this in their listings. Items made entirely by AI prompts — with no additional human creative input — are also permitted under the "Designed by a seller" category, but AI prompt bundles (selling the prompts themselves) are banned.
Starting in September 2025, Etsy partnered with OpenAI, Google, and Microsoft to let shoppers discover and buy Etsy products directly inside AI chat tools like ChatGPT, Google's Gemini, and Microsoft Copilot — without leaving those apps. This type of integration, where an AI assistant completes a purchase on a user's behalf, is called agentic commerce.
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Etsy introduced formal "Creativity Standards" in July 2024, requiring all sellers to label their listings by how much human involvement went into creating the item. Sellers who use AI tools to generate artwork or designs must disclose this in their listings. Items made entirely by AI prompts — with no additional human creative input — are also permitted under the "Designed by a seller" category, but AI prompt bundles (selling the prompts themselves) are banned.
Etsy's policy establishes four item categories: "Made by a seller" (fully handmade or designed from scratch), "Designed by a seller" (covers AI-generated art created using the seller's original prompts), "Sourced by a seller," and "Handpicked by a seller." A June 2025 update tightened the "Made by" standard to require items be produced using the seller's own original design, not third-party templates. In 2024, Etsy removed 22% more listings under these Creativity Standards and suspended 1.5x more sellers than in the prior year, while simultaneously improving automated detection precision by 70% — reducing false positives. Etsy states it is monitoring evolving debates around AI training on copyrighted works and will periodically reevaluate its policies. The policy has generated ongoing debate within Etsy's seller community, with some human makers arguing that AI-generated listings undermine the handmade marketplace's core identity.
Starting in September 2025, Etsy partnered with OpenAI, Google, and Microsoft to let shoppers discover and buy Etsy products directly inside AI chat tools like ChatGPT, Google's Gemini, and Microsoft Copilot — without leaving those apps. This type of integration, where an AI assistant completes a purchase on a user's behalf, is called agentic commerce.
In September 2025, Etsy became one of the first partners for OpenAI's ChatGPT Instant Checkout, powered by the Agentic Commerce Protocol built with Stripe, allowing U.S. ChatGPT users to purchase items from U.S. Etsy sellers directly in chat. Etsy's stock rose 16% on the announcement. In January 2026, Google's AI Mode and Gemini were added as purchase channels using Google's Universal Commerce Protocol. In February 2026, Microsoft Copilot Checkout launched with Etsy among the initial partners. By Q4 2025, traffic to Etsy from agentic channels had grown approximately 15x year-over-year, though it remained under 1% of total visits. Listings included in these integrations are from sellers enrolled in Etsy's Offsite Ads program. As of March 2026, OpenAI was reportedly reconsidering the scope of its in-app checkout rollout.
