Etsy Updates Policies to Include AI Art and Adds New Tags to Clarify Human Roles

Etsy updated its seller policies on Tuesday adding new tags and allowing entrepreneurs to sell AI art but not prompts. The American e-commerce, known for its handmade and human artwork items, redesigned its house rules and published a new document called Etsy’s Creativity Standards.

“After carefully considering the complex issues surrounding AI-generated content, we have decided to continue to allow sellers to use their original prompts in combination with AI tools to create the artwork they sell on Etsy,” shared the company on its official stance on AI creations. “We believe this decision aligns with our values of supporting artists through the evolution of art.”

In the new creativity standards, the company introduced four new labels that every product must include: “Made by a seller”, “Designed by a seller”, “Sourced by a seller”, and “Handpicked by a seller.”

For the category “Designed by a seller” Etsy clarified that sellers can include AI artwork they created using prompts. “Creations that were generated using AI tools (e.g. AI image generators such as Dall-E) based on a seller’s original prompts,” defines the document. “Sellers must disclose within their listing description if an item is created with the use of AI.”

However, Etsy forbids users to sell AI prompt bundles. “We believe that the prompts used to generate AI artwork are an integral part of the creative process and should not be sold separately from the final artwork,” Etsy staff explained.

Etsy also highlighted that users must follow the rules regarding sexual content and nudity and that it is forbidden to sell content that can infringe on the rights or privacy of others.

Even though it is allowing sellers to publish AI-generated content, Etsy considers its approach pro-human and is part of its new campaign. The company promised to stay tuned on new AI updates, understanding people’s concerns about AI taking over human art, and providing unique solutions in the market.