Etsy Updates AI Policies Amid Ongoing User Scepticism

Etsy has introduced new policy updates aimed at curbing the misuse of artificial intelligence on its marketplace, following mounting criticism from artists and sellers regarding AI-generated copies of original work. The company acknowledged that its previous handling of AI-related concerns was not as direct or timely as many users had hoped.

Key Policy Changes

• Required Realism: Sellers must include at least one unedited photo of their item against a real background to ensure authenticity.
• Functional Guide Restrictions: AI-generated functional guides, such as patterns and recipes, are now banned. Remaining listings for these items must feature an image of a real-world result.
• Reporting Mechanism: A new reporting category for "misleading AI-generated images" has been introduced. However, Etsy has clarified that these reports serve to help the company understand misuse patterns and will not trigger immediate enforcement.
• AI-Art Transparency: AI-generated prints remain permitted, provided the seller maintains a clear creative role and is transparent about their process.

Community Reaction

While some users see these updates as a positive shift, many remain sceptical. Critics point out that the reliance on individual sellers to act honestly is insufficient. For instance, reports indicate that AI-generated versions of specific crochet designs have continued to appear on the platform even after the policy update was announced.

Sellers have expressed frustration that the new reporting tool does not lead to immediate action. Some members of the creative community argue that while AI tools can be helpful for various design tasks, the platform needs a more proactive approach to identify and remove plagiarised or misleading AI-generated content. Etsy has described these measures as a "starting point" and states that it will continue to re-evaluate its stance as technology evolves.