Etsy has announced new rules to limit the use of AI on its platform, part of a growing campaign to set stronger rules regarding AI usage. In a blog post, Etsy said it was blocking the sale of 'functional guides' created with AI, including stitching styles, food reviews, and sewing instructions. Sellers must show a real and authentic item made using the instructions, not a simulated or symbolic one, 'so that purchases can be predicted,' Etsy said.

Etsy also said it was making changes to its store conditions to help strengthen its credibility. 'Many purchases have been saying they couldn’t distinguish between items created with AI and those that use AI in an untruthful way,' the company wrote. 'It has become one of the biggest limitations to our shopping practices on Etsy.' Etsy said it would no longer grant permits to sellers who create bot-generated listings without human intervention. At least one photo of the item sold by the purchase would be required. Etsy said it would still allow AI work on its platform, but only if the sellers 'clearly expose their role in what they create and are honest about the creation process.' It added: 'Sellers will still need to speak up when an item is created with AI and cannot be treated as a manually made or completely their own product.' Etsy was founded in 2005 and is known for its mix of artisans and art objects.

The company has moved towards this attitude toward the environment where it has taken the lead in products, resold, and competitors from Amazon and Walmart, alongside new startups like TikTok, Temu, and Shein. Products or images created with AI present a new challenge for Etsy and other online marketplaces. Etsy has previously launched a campaign against AI-generated sewing guides, but faced a different issue: Amazon asked sellers to indicate the photos or videos showing AI people, in response to recent laws requiring the identification of AI people.

Despite trying to control the use of AI in store listings, Etsy has also introduced AI technology on more of its website. The company used AI to create more detailed customer profiles and to expose the most relevant items in search results. Etsy has also collaborated with OpenAI to work on the platform.