Etsy cracks down on AI-copying issues but some users still sceptical

Online marketplace Etsy, known for handmade products, updates its policies to restrict AI use, following criticism from its community.

Etsy users are cautious about the changes, with some saying AI-copying issues persist.

Etsy says these changes are merely a "starting point" and will be periodically re-evaluated.

Global online marketplace Etsy has updated its artificial intelligence policies following widespread criticism from users faced with AI-generated products.

Etsy recently sent an email to sellers, informing them of the changes, and published the new policy online.

"We recognise we haven't always addressed the topic of AI as directly or as quickly as you may have wanted," it said.

The statement provided a list of policy updates to set clearer restrictions on AI use.

One requires sellers to include at least one unedited photo of their item against a real background, with exceptions for some products.

"Some digital items, like audio files, don't have visual elements. For those listings, you may use representative imagery, including AI-generated images, as long as it doesn't mislead buyers about what they're purchasing," it said.

Photo-editing tools, such as exposure, crop and background adjustments, including AI, are still allowed for other listing images "as long as those edits don't make the item appear different".

Etsy said that if the item received by buyers is "materially different" from the listing images, the seller may be responsible for a refund.

Another update banned AI-generated functional guides like recipes and crochet patterns.

Listings for these items that aren't AI-generated must also provide an image of a real result.

New features are also being introduced, such as a specific "misleading AI-generated images" reporting option and guidance for listing photos.

However, at this stage, the reports are only to help Etsy "better understand how members perceive potential AI misuse and won't result in immediate enforcement action".

It's unclear if the guidance for listing photos has been implemented.

AI-generated art, like prints, are still permitted "when sellers play a clear creative role in what they create and are transparent about their process".

Earlier this month the ABC spoke with Lucy Cooper, a Hobart-based crochet artist known for her 90s-surf-wear-inspired spiral beanie design.

Ms Cooper said she had discovered an Etsy store selling an AI-generated version of her crochet beanie pattern, with AI-generated images.

Etsy's new AI policy changes suggest it will prevent experiences like hers from occurring.

Ms Cooper found another Etsy store selling an AI-generated version of her beanie pattern, and all eight product images were generated by AI.

The listing was published on October 28, six days after Etsy announced its policy update.

"It's good that they're actually doing something, but I think that it's a little bit of a laugh," Ms Cooper said.

Ms Cooper said she felt the changes relied too heavily on sellers doing the right thing.

"The problem is people aren't being honest," she said.

"If you're the platform owner, you have to do something to make it so that this can't happen."

Following Etsy's announcement, users across the globe took to social media to voice their opinions on the changes.

In an Instagram post, Jade, a seamstress, said, "It seemed like [Etsy] didn't want to demonise AI usage, but I think that's going to alienate a large part of their database — buyers and sellers alike — who are truly anti-AI."

In the comments, one user said: "They are trying to serve a larger group of people and shops. Banning AI entirely would mean a lot of shops would close.

"I am a visual and web designer, photographer and … wood artisan. I create physical and digital crafts. There is a place for AI, and banning it would really make some parts of the design process unnecessarily slow.

In another post, Molly, a crochet artist, asked, "is Etsy going to take a proactive approach to finding [AI-generated pattern listings]? I think that these are positive changes … I'll believe it when I see it."

Some are frustrated by Etsy's decision to not immediately remove listings that are reported for AI misuse.

"I think [the new reporting feature is] really good. But if you're not going to do anything about it, what's the point of it being there?" Ms Cooper said.

"When you report an item, and you say it's AI-generated or this pattern doesn't work or it's copyright or it's plagiarism, it should immediately get taken down, or they should notify you what's happening with it."

Etsy says it is aware there is more to address as AI continues to evolve, and that it will keep making improvements as it listens to its community and learns what it needs.

"We recognise we haven't always addressed the topic of AI as directly or as quickly as you may have wanted," the company said.

"It's changing fast, and like many of you, we're thinking seriously about what it means for Etsy, what's allowed on our marketplace, and how it impacts running a creative business.

"We are closely monitoring developments in this rapidly evolving area, listening to feedback from our community, and periodically re-evaluating our policies.

"These changes are our starting point, not the finish line."