Etsy, the online marketplace known for handmade and vintage goods, has found itself at the center of an art debate after, in a move that's sure to raise eyebrows, it announced that it would allow AI-generated art to be sold on its platform.
Etsy is embracing the AI art trend, but with a few caveats: Sellers must disclose the use of AI tools in their listings, and AI prompts cannot be sold separately from the final artwork; the art and instructions must be sold together.
It's a policy that attempts to strike a balance between supporting artists and preserving the integrity of Etsy's handmade ethos, but will it be enough to satisfy critics and prevent the platform from becoming flooded with AI-generated products?
Etsy's decision comes amid a wider debate about the role of AI in the creative industries, as the popularity of AI image generators such as Midjourney and Stable Diffusion grows, along with concerns about their impact on artists' livelihoods.
But Etsy's decision to allow AI art but not human-written prompts raises some unique questions about the nature of this art itself: what is automated and what is human.
Etsy is no stranger to controversy
This isn't the first time Etsy has been embroiled in controversy. In recent years, the platform has faced criticism for allowing the sale of mass-produced and handmade goods that violate its policy. In 2015, Etsy updated its policies to allow sellers to work with outside manufacturers, a move that some felt betrayed the site's artisan roots.
Since then, the changes have led to an influx of mass-produced goods and resellers on the platform, and studies have uncovered growing issues with counterfeit goods and drop shipping, where sellers buy cheap items from sites like AliExpress and resell them on Etsy at a marked-up price without the buyer's knowledge.
Recently, in April 2022, Etsy sellers around the world One week strikeput his shop on “vacation mode” to protest Etsy's increase in transaction fees from 5% to 6.5%. Sellers were unhappy with the increased fees, which were on top of other costs like listing fees, payment processing, and advertising, while the quality of the platform continued to decline.
Since then, articles in publications like The Washington Post, The Guardian, and Forbes have regularly highlighted how the platform frequently exploits artists.
Why this new AI art policy is important
Given this background, Etsy's stance on AIThis has additional implications: By allowing AI-generated products but requiring disclosure and banning the sale of prompts, Etsy is striking a balance between embracing new technology and maintaining its identity as a marketplace for human-made crafts.
The policy is also significant because it could set a precedent for how other platforms handle AI art: As more creators experiment with AI tools, sites like Society6, Redbubble, and Zazzle may look to Etsy's approach as a model.
But is this policy really as effective as advertised? Is a ban on AI prompts enough to eliminate the proliferation of low-quality, high-volume automated artwork? Let's take a closer look.
Starting in July, Etsy introduced four new labels that the platform uses to categorize product listings based on the seller's role in creating the item.
- “made”: For physical goods that were created, modified, or assembled by the seller using their own hands or tools
- “Designed by”: Original designs by Sellers (including AI Art proposed by Sellers) are provided as digital downloads or produced/printed by a third party
- “source”: Craft supplies, party decorations and other products that inspire your creativity
- “Carefully Selected”: Vintage items, natural items, and curated collections from select sellers
Sellers can combine their own prompts with AI tools to create artwork to sell on Etsy, but the use of AI must be properly disclosed in the product listing. And while AI can be used in the creative process, Etsy prohibits the sale of AI prompt bundles without a finished artwork. The company believes that prompts are an integral part of the creative process and shouldn't be sold separately.
But will a ban on the sale of AI prompts be effective in curbing mass production? The prompts, written by actual engineers and artists, represent the only human element of this art. Some might argue that the ban prevents plagiarism of the creative process, but that's not really the case. What's stopping sellers from grabbing these AI prompts from other platforms and selling the art on Etsy?
What this means for artists and entrepreneurs
For artists and entrepreneurs who sell on Etsy, this new policy brings both opportunities and challenges. On the one hand, AI tools can help generate new ideas and create products more efficiently: illustrators can use Midjourney to brainstorm concepts, and pattern designers can use automated tools to quickly generate multiple variations.
But artists need to be transparent about their use of AI, as they may face increased competition from sellers mass-producing AI-generated designs, and artists need to be careful not to violate new rules on sales prompts.
Etsy may soon find out that there's simply no right way to market itself as a marketplace for custom design and vintage art while also selling AI-generated designs.
Unfortunately, this new policy does little to protect artists and buyers from the mass production of low-quality artwork. Rather, it legitimizes the sale of AI art on Etsy and makes it even harder for the platform to implement policies in the future that maintain its image as an artisan marketplace. Banning the sale of prompts will do little to solve this problem.
Anticipating a backlash, Etsy has already partnered with a creative agency. Orchard Creative Etsy is launching a new advertising campaign to show how much the platform cares about its human artists. In New York and London, outdoor billboards will be placed at street level for a more intimate feel, while elsewhere Etsy will have a giant billboard with a crumpled robot arm in the background shouting, “What do robots know?”
But publicity aside, the new policy seems to do little to protect the interests of the artists the platform claims to care for. There's clearly a market for AI art, but Etsy seems to be trying to have both. Advertising itself as a marketplace for custom designs and vintage art, while also selling AI-generated designs as a side business, is simply not the right way to go. Etsy may soon find out.
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