The Etsy Inc. headquarters in the Brooklyn borough of New York on June 25, 2024.
Victor J. Blue | Bloomberg | Getty Images
Etsy said Thursday it will no longer allow merchants to sell AI-generated recipes and patterns on its online marketplace, as part of a wider push to set firmer rules around the use of artificial intelligence on its platform.
In a blog post, Etsy said it's banning the sale of "functional guides" that are created using AI, including patterns, cooking recipes and instructions. The products are usually marketed as digital downloads, such as crochet or sewing patterns. Users then "put in effort to achieve a finished product," the company said.
Sellers will also be required to show an actual item made using the instructions, not an AI-generated or simulated result, "so buyers know what to expect," Etsy said.
Etsy said in a separate notice to sellers that it was making the changes as AI threatens to erode buyers' and sellers' trust in the platform.
"Today, many active buyers say they can't tell which items involve AI-generated content," the company wrote. "It's become a top-three barrier to shopping more often on Etsy. And you, our seller community, have told us you're concerned about your work appearing alongside items that use AI in misleading ways, and that it's becoming harder for buyers to recognize your role in creating your items."
As part of the move, Etsy said it's barring sellers from creating bot-generated listings without any human involvement. Sellers will also be required to include at least one unedited photo of the actual item they're selling.
Etsy told sellers it will continue to allow AI-generated art on its platform as long as merchants "play a clear role in what they create and are transparent about the process."
"Sellers must still disclose when an item is created using AI and cannot misrepresent AI-generated work as handmade or entirely their own creation," the company added.
Founded in 2005, Etsy is known for its mix of craft makers and artisan goods. The company has been leaning more into that reputation as it has battled an influx of generic, mass-produced items from resellers and increasing competition from Amazon and Walmart, as well as newer e-commerce upstarts like TikTok, Temu and Shein.
Misleading, AI-generated products or images present a new challenge for Etsy and other online marketplaces. Etsy has in recent years struggled to curb the proliferation of AI-made crochet patterns and other AI "slop." Amazon recently required sellers to label photos or videos that feature AI-generated people in response to recent legislation mandating the disclosure.
While Etsy has cracked down on the use of AI in listings, it's been infusing the technology throughout more of its website. The company has used AI to build more detailed profiles of shoppers and surface relevant products in search results.
Etsy has also partnered with OpenAI on shopping features, including launching a ChatGPT app for product discovery.