Etsy bans AI-generated patterns and recipes, bot listings

Etsy (ETSY) will no longer allow sellers to list AI-generated functional guides, such as patterns and recipes, on its marketplace and set clearer rules around AI use on its platform.

Listings for functional guides must also show a real result made using the instructions, James Ossman, VP of customer operations at Etsy (ETSY), wrote in a blog post.

Sellers will also be required to include at least one unaltered photo of an item listed in the marketplace against a real background. Any additional AI-generated listing images must accurately represent the item.

Bot-generated listings without human involvement are not allowed on Etsy (ETSY), nor is AI use that misleads buyers or creates fraudulent inventory. Sellers are still required to disclose when AI is used to create an item.

"AI should support our sellers' creativity and craftsmanship, not replace them," Ossman wrote. "When shopping on Etsy, you should always be able to understand the role sellers play in every item."

He said Etsy (ETSY) decided on the new policies instead of a blanket ban on AI tools as the technology can "help sellers bring creative ideas to life or make the tedious tasks involved in running a business more efficient."

"We're leveraging technology to better identify misleading imagery and fraudulent listings," Ossman noted. "We're also making it easier for users to report listings they believe include misleading AI imagery."

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