Etsy announced on Thursday that it will prohibit the sale of AI-generated recipes and patterns on its marketplace, citing the need to establish clearer rules regarding artificial intelligence usage. The company stated that these 'functional guides,' often sold as digital downloads, have led to confusion among buyers who struggle to identify AI-generated content.
In response to seller feedback, Etsy emphasized the importance of transparency, requiring sellers to provide actual items made from the instructions rather than AI-generated representations. Additionally, sellers must include at least one unedited photo of the actual product.
While Etsy will continue to permit AI-generated art, it mandates that sellers disclose the use of AI and cannot misrepresent such work as handmade. This policy shift comes as Etsy faces increasing competition from platforms like Amazon and TikTok, as well as the challenge of misleading AI-generated products.
The company has also been integrating AI into its operations, using it to enhance shopper profiles and improve product search results