Etsy introduces a new AI-powered feature aimed at transforming the shopping experience with curated collections and personalized recommendations.
Etsy has introduced a new AI-driven discovery feature on its app to enhance the shopping experience for users seeking unique and personalized items. This announcement was made on April 9, 2025, as part of Etsy’s ongoing initiative to differentiate its marketplace amidst the competitive e-commerce environment, where many product offerings can appear generic and repetitive.
With a vast marketplace boasting over 100 million items spanning multiple styles and categories, Etsy’s new AI-powered feature aims to showcase the creativity and individuality of its sellers. The redesigned browsing experience will emphasize visually rich, curated collections that reflect current trends, shopper preferences, and various occasions.
The curated collections on the Etsy app will include trend-driven themes such as “Island Luxe,” alongside lifestyle aesthetics like “Modern Farmhouse” and “Maximalist.” Shoppers will also have the opportunity to explore niche collections, such as the “Literary Girl” trend. Etsy’s approach begins with a team of human experts who analyze market trends and compile an initial selection of around 50 listings. Following this, Etsy’s engineers utilize machine learning algorithms to expand these collections to about 1,000 listings. Large language models (LLMs) are used to ensure that the expanded selections maintain visual coherence, diversity in product types, and adhere to Etsy’s quality standards. “Rather than removing human expertise from our merchandising work as AI becomes more powerful, we’re leveraging these tools to amplify the expertise of our team and create a more personalized experience,” the company stated.
Another component of Etsy’s discovery feature is its behavioral data integration, which customizes each shopper’s experience based on their recent activities, like viewed items and historical purchases. The collections displayed within a user’s feed will be organized to reflect their individual preferences. With this personalization strategy, Etsy aims to cater to the expectations of modern consumers, particularly younger generations who seek products that resonate with their distinctive styles. The announcement emphasized this move as “a meaningful step forward” in shifting the online shopping experience from mundane to inspiring.
Moreover, Etsy’s new system sets the stage for future advancements in data-driven personalization. As users interact with the curated feeds, Etsy will gather more insightful data about buyer behavior, which will enable the platform to refine its machine learning models to better predict shopper preferences. Concurrently, the use of LLMs will provide Etsy with deeper insights into its marketplace inventory, fostering more intelligent and nuanced recommendations throughout its extensive catalog. The company expresses that this initiative is a long-term strategy designed to unlock the full potential of its diverse seller community, ensuring that every shopper can discover something truly special.
The AI-powered discovery feature has been launched on the Etsy app, marking a significant evolution in how users engage with the platform through a combination of technology and human curation.
Source: Noah Wire Services
