Etsy Balances AI and Authenticity with New “Creativity Standards” for Sellers

Etsy introduces new “Creativity Standards” to address the rise of AI-generated products on its platform, aiming to maintain transparency and authenticity for buyers.

Key changes in Etsy’s seller policies: Etsy has revised its seller guidelines to require clear labeling of products based on the level of human involvement in their creation:

• The “Handmade” label applies to items physically made by the seller or with the help of tools like 3D printers.
• The new “Designed” label is for products created using AI or other digital tools, ensuring buyers know they may not be entirely handmade.

Balancing AI and handmade products: While Etsy has faced criticism over the influx of AI-generated items, the company is allowing AI use under certain conditions:

• Sellers can utilize AI tools for creation but must disclose this in the product description.
• The sale of AI prompts, such as “10,000 Midjourney Prompts,” is strictly prohibited, and such listings will be removed starting Tuesday.

Etsy’s commitment to authenticity: CEO Josh Silverman emphasized the company’s dedication to keeping “commerce human” during the first-quarter earnings call:

• Etsy removed four times more listings violating its Handmade policy compared to the previous year.
• The new guidelines aim to improve transparency and trust among buyers, enabling more informed purchasing decisions.

Broader implications for online marketplaces: As the debate around AI-generated art and products continues, Etsy’s approach could set a precedent for other platforms grappling with similar issues. The revised policies strike a balance between embracing AI technology and maintaining the integrity of handmade and unique items that have been central to Etsy’s identity. However, it remains to be seen how effectively these guidelines will be enforced and whether they will sufficiently address concerns raised by traditional artists and buyers.