Etsy Turns to AI to Reclaim Human Authenticity

Etsy is deploying artificial intelligence as its primary weapon against the proliferation of AI-generated and low-quality listings that have diluted its brand. The company's new CEO, Kruti Patel Goyal, appointed at the start of 2026, is spearheading this initiative.

Under Goyal's leadership, Etsy has seen a resurgence, with active buyer numbers increasing for the first time in two years and active seller growth reaching its highest point since 2024. This progress was reflected in an 11% revenue increase to $692.5 million and a 9% rise in gross merchandise sales to $2.65 billion for the most recent quarter.

To further combat inauthentic listings, Etsy has updated its AI policy. Most listings now require at least one unedited photo against a real background and increased transparency regarding AI usage, even for compliant applications.

Goyal believes AI can help buyers navigate the vast number of listings by inferring tastes and assisting with complex searches, while also detecting policy violations. The company is also using AI to support sellers with tasks like drafting listings and optimizing product promotion.