AI is everywhere. Yet, companies are backpedalling from plans involving AI.
In March this year, Microsoft paused an automated AI ‘Copilot’ after customer backlash.
More recently, Meta halted a plan to train AI after security fears and public and staff backlash.
That’s not all. Even retail platforms are getting spooked into cracking down on AI.
Etsy updates policies (supposedly) restricting AI products
According to the ABC, online shopping platform, Etsy updated their policy, restricting users’ ability to use artificial intelligence (AI) in their images. Etsy sent their users an email on the changes, and published them on the website.
The website claims it aims to protect buyers, sellers. and Etsy’s reputation.
At the heart of it all is the trust buyers and sellers have when they shop and sell on Etsy. AI is threatening that trust, and we have a responsibility to protect it. Today, many active buyers say they can’t tell which items involve AI-generated content. It’s become a top – three barrier to shopping more often on Etsy.
(“Seller Handbook: Important Updates to Use AI on Etsy”, James Ossman, 22 October 2026).
The updated terms include:
- Sellers must include at least one enedited photo of the item.
- All photos must accurately show the item that a buyer will receive
- All manuals, instructions, etc must be the seller’s own work
- Any tesults of a certain product must be shown without any AI – generation
- Sellers deceiving buyers through AI – generated text or images may require to give the buyer a refund
- Bot – generated images are banned and Etsy will remove them. Sellers using bot – generated images risk losing their store entirely.
Etsy’s update makes some sellers sceptical
Not every retailer who has an Etsy store trusts the changes. Lucy Cooper, a crochet artist from Hobart, Tasmania, is sceptical. She told ABC:
It’s good that they’re doing something, but I think that it’s a bit of a laugh. The problem is people aren’t being honest. If you’re the platform owner, you have to do something to make it so that this can’t happen.
(‘Etsy cracks down on AI with new guidelines but some craft sellers still sceptical”, Ebony ten Broeke, Posted 31 October 2026).
Cooper claimed that she’d discovered an Etsy store using AI – generated images after policy was put in place.
Other artists have showed mixed reactions on social media.
Seamstress, Jade, shared on Instagram that she predicted that the policy would alienate buyers and sellers for not going hard enough against AI.
In response to Jade’s post, a user said that if Etsy goes too hard against AI, they would force some stores to shut down.
One user criticised Etsy for not acting fast enough when users flag AI – generated content, copyright infringement and plagiarism.
AI does not belong in the creative industry
Personally, I applaud Etsy for trying to do something to regulate AI. I hope they stick to it and actually penalise those breaking their policy.
As a blogger and social media content creator, I have spent hours of the past thirteen years creating my own corner online.
I don’t want anything that I’ve written and created to be stolen. In my opinion, this is the biggest ethical problem for creators and indie authors.
Are we OK to have our creations stolen for someone else’s convenience? Because, ultimately, this is what is happening with AI overtaking creative industries.
What do you think about Etsy’s updated AI policy? Does it go far enough? Feel free to drop your thoughts in the comments below.