Incoming Etsy CEO Says AI Will Help Sellers; Many Say It’s Making Things Worse
Ask Me Anything event with Chief Growth Officer and soon to be new CEO, Kruti Patel Goyal, reveals stark divide between Etsy and sellers on AI and the importance of "keeping commerce human."
The event kicked off with a question that had been sent in by a seller who clearly had some of Etsy's recent AI changes on her mind, asking "how do you envision balancing the platform's growing scale and use of automation with maintaining the sense of individuality, craftsmanship, and personal connection that originally made Etsy special for both sellers and buyers?"
Patel Goyal's answer, predictably, said she believes AI as a tool that can actually help make Etsy feel even more human:
I would say that I think that it'ss more important now than ever as the experiences around us become more and more automated and more and more impersonal. I think Etsy is a place that really stands out because it can and should feel that much more human and that much more personal than anywhere else online that you can shop.
In terms of how we leverage and utilize technology, it's evolving and as AI in particular is evolving, I think that we have the opportunity to leverage technology to make Etsy feel even more human, to amplify all of the things that make Etsy special.
And so when I think about that for all of you for our sellers, we are really excited about how we can leverage AI to take a lot of the work and the things that take a lot of time out of your days to give you more time to do what only you can do, the creation, the creating and the connecting with buyers.
And on the buyer side, we're really investing a lot in leveraging AI to... highlight what makes the items on Etsy really special and human, but also to do a much better job matching and connecting people with things that uh meet their interests.
But sellers in the live chat during the event had very different opinions about AI's place in the Etsy experience, with some expressing concerns about AI altered pictures and digital products flooding the marketplace as well as problems with having AI automating policy enforcement.
When asked about marketplace integrity and whether Etsy will require AI usage in art creation to be disclosed and/or allow buyers to filter out AI generated products, Patel Goyal carefully threaded the needle with her answer, likening AI to other technologies like using a loom instead of hand-weaving or knitting.
We all believe really deeply that Etsy is a platform that stands for and welcomes all kinds of creativity...And over the years, we've had a lot of debate about as new technology or production methods or ways to create new inventory have evolved whether or not those types of items should be included.
And over the years, we've continued to say, look, whatever the production methods are, we want to be an inclusive platform that enables creators of all types to reach an audience and thrive. I think that's part of what makes Etsy special.
I think that the challenge here is how we make it really clear what went into creating an item. So it's very clear to anyone who's buying it what it is and how it was made. And then the second part of that is really doing a much better job showing people what it is that they care about and they value.
So if somebody is interested in something handcrafted we want to show them that, if someone is really interested in AI generated art we want to be surfacing more of that. And I think that we can do a much better job of that. It's not about what is or isn't on the platform. It's about what buyers are seeing and whether or not it's relevant to them...
...I remember having a conversation about this many years ago with a seller who not only knit her own goods but actually raised her own sheep and sheared her own wool, spun her own yarn and was worried about these sellers who were using knitting looms and what that meant in terms of the quality, availability and price point at which something that looked similar was competing with her inventory.
And I think it's a very different example, but actually the same theme at the core, which is there is a big difference between those two items and if we can't effectively show that to buyers, then then that's our job to do a good job of showing that to buyers because there are buyers who really value that hand knit from beginning to end, that handmade item from beginning to end...and we can serve all of those needs.
So when I step back and think about this in the context of the history and evolution of Etsy, what I want to make sure is that we continue to be committed to creators of all types and support them, that we do a better job helping you reach the right buyers and making sure they understand what it is that you offer and what makes it special.
Sellers expressed frustration with that answer, saying it sounded like Kruti was already in full CEO mode speaking to investors, not addressing the actual concerns of real sellers on the marketplace.
Taking on the theme, one seller in the chat pointed out that many AI generated crochet patterns listed on the site are scams because they often don't actually make something that would look anything remotely like the item in the listing image.
Another simply said "AI is NOT the same as knitting loom!!!" - and received many thumbs up and applause reactions from other attendees.
And yet another pointed out that allowing AI products to saturate the market crowds out new creators, saying "Etsy is a highly saturated market just from sellers with physical, hand-designed products, making it difficult for new shops to gain traction. Allowing AI products will just continue crowding new creators out."
A post in the r/EtsySellers sub-reddit with over 70 responses also showed many sellers do not share Patel Goyal's optimism and enthusiasm for Etsy's AI future.
To not acknowledge AI as a problem on their platform is concerning. I do not think it has a place on Etsy. If they want AI generated products, launch EtsyAI.
Seriously. “If people want handmade - they can search handmade.”
WHY isn’t “handmade” the DEFAULT??? The only people searching AI on purpose will be scammers looking for easy art to steal.
I'd like an option to never see AI, period. Whether it be a listing or a suggestion.
The Ask Me Anything session ended with hints about new features and tools coming soon, which some sellers say makes them concerned that Etsy is planning to roll out new ways to make more money off of them through additional services and fees to boost revenue amidst lagging sales and buyer growth - like the recently launched test of a new Instant Transfer option, offering faster access to funds, for a fee.
Liz Morton
What did you think of this Ask Me Anything event and what other questions would you have for Kruti Patel Goyal as she prepared to take the helm as CEO of Etsy in January 2026? Let us know in the comments below!
