Etsy Introduces AI-Powered Discovery Experience to Personalize Shopping

Etsy has unveiled a new AI-powered discovery experience on its app, designed to help shoppers find unique, personalized items through a more engaging and curated browsing interface. The announcement, made on April 9, 2025, highlights Etsy’s efforts to distinguish its platform from the broader e-commerce landscape, where product listings often appear repetitive and lack individuality.

With a marketplace of over 100 million items across various styles and categories, Etsy aims to use this latest feature to spotlight the individuality and creativity of its sellers. The new discovery experience is focused on transforming how users browse the Etsy app by offering visually rich, curated collections tailored to current trends, shopper tastes, and occasions.

Blending Human Expertise and AI Tools

The new collections showcased on the Etsy app range from trend-driven themes like “Island Luxe” to lifestyle aesthetics such as “Modern Farmhouse” and “Maximalist.” Shoppers can also explore more niche themes, such as the “Literary Girl” trend. According to Etsy, these collections begin with a team of human experts who identify trends and select an initial set of approximately 50 listings.

From there, Etsy engineers employ machine learning to expand the collection to around 1,000 listings. Large language models (LLMs) then help ensure that the expanded set is visually cohesive, diverse in product type, and meets Etsy’s quality standards. Etsy refers to this hybrid approach as “algotorial” curation—a fusion of algorithmic tools and editorial expertise.

“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.

Tailored Recommendations Based on Shopper Behavior

Etsy’s new browsing feature also incorporates behavioral data, personalizing each user’s discovery experience based on recent activity such as viewed items and past purchases. The items displayed within a collection’s feed will appear in an order that reflects individual shopper preferences.

This move positions Etsy to better meet the expectations of modern consumers, especially newer generations seeking products that reflect their distinct styles. As noted in the announcement, Etsy sees this effort as “a meaningful step forward” in transforming the online shopping experience from monotonous to inspiring.

A Foundation for the Future

Etsy’s new discovery system also lays the groundwork for more advanced, data-driven personalization in the future. As more shoppers engage with the curated feeds, the platform will be able to collect deeper insights into buyer behavior, enabling further refinement of machine learning models that predict shopper preferences.

In parallel, Etsy is using LLMs to gain greater insight into its marketplace inventory, allowing for more intelligent and nuanced recommendations across its vast catalog. The company sees this initiative as a long-term strategy to unlock the full potential of its uniquely diverse seller community and ensure that every shopper can find something truly special.

The AI-powered discovery feature is now live on the Etsy app, offering a blend of technology and human curation aimed at reimagining how users explore the platform.

Image: Etsy

This article, "Etsy Introduces AI-Powered Discovery Experience to Personalize Shopping" was first published on Small Business Trends