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Etsy bans AI-generated recipes and patterns from its marketplace

Etsy will bar sellers from listing AI-made patterns, recipes and instructions, and require photos of real finished items, saying buyers cannot tell what is AI-generated.

Etsy bans AI-generated recipes and patterns from its marketplace
Image: CNBC Top News

At a glance

  • Etsy is banning the sale of AI-generated patterns, cooking recipes and other "functional guides" from its marketplace.
  • Sellers must include at least one unedited photo of the real item and cannot post bot-generated listings with no human involvement.
  • AI-generated art is still allowed if sellers disclose it and play a clear role in the creation process.

Etsy said Thursday it will no longer allow merchants to sell AI-generated recipes and patterns on its online marketplace, part of a wider push to set firmer rules on how artificial intelligence is used on the platform.

In a blog post, the company said it is banning the sale of "functional guides" created with AI. That covers patterns, cooking recipes and instructions — goods typically sold as digital downloads, such as crochet or sewing patterns, which buyers use to make a finished product themselves.

Sellers must now show an actual item made using the instructions rather than an AI-generated or simulated result, "so buyers know what to expect," Etsy said. The company also said sellers must include at least one unedited photo of the real item they are selling, and cannot publish bot-generated listings with no human involvement.

In a separate notice to sellers, Etsy said trust was the reason for the change. "Today, many active buyers say they can't tell which items involve AI-generated content," the company wrote, describing this as a top-three barrier to shopping more often on Etsy. Etsy added that sellers had told the company they are worried about their work appearing alongside items that use AI in misleading ways.

AI-generated art still allowed

Etsy said it will continue to permit AI-generated art, provided merchants "play a clear role in what they create and are transparent about the process." Sellers must still disclose when an item is made using AI and cannot present AI-generated work as handmade or entirely their own creation.

Founded in 2005, Etsy built its reputation on craft makers and artisan goods, a positioning it has leaned into while battling an influx of generic, mass-produced listings from resellers and competition from Amazon, Walmart, TikTok, Temu and Shein.

Misleading AI-generated products and images are a newer challenge for Etsy and other online marketplaces. Amazon recently began requiring sellers to label photos or videos that feature AI-generated people, in response to legislation mandating disclosure.

Even as it restricts AI in listings, Etsy has been spreading the technology across its own site. It has used AI to build more detailed profiles of shoppers and to surface relevant products in search results, and it has partnered with OpenAI on shopping features, including a ChatGPT app for product discovery.

Source: CNBC.

Questions and answers

What is Etsy banning from its marketplace?
Etsy is banning AI-generated "functional guides" such as patterns, cooking recipes and instructions, which are usually sold as digital downloads. Bot-generated listings with no human involvement are also barred.
Can sellers still sell AI-generated art on Etsy?
Yes. Etsy says AI-generated art remains allowed as long as sellers play a clear role in what they create, disclose the use of AI and do not present the work as handmade or entirely their own.
Why is Etsy making these changes?
Etsy says many buyers cannot tell which items involve AI-generated content, calling it a top-three barrier to shopping more often on the platform. Sellers also raised concerns about their work appearing alongside items that use AI misleadingly.
Original reporting: CNBC Top News (cnbc.com)
etsyartificial intelligencee-commerceonline marketplacesellers

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