STOCKS | Etsy Uses AI to Improve Personalization and Lift Growth
Etsy is using artificial intelligence to build detailed consumer profiles for about 90 million users. According to Sina Finance, the company said the profiles help it better understand customer needs and tailor shopping recommendations.
Chief Financial Officer Lanny Baker said Etsy had been clumsy on personalization in the past, but is now working to make it more efficient. The company said more than 70% of buyers now have more precise profiles, and it plans to complete the rest.
Etsy said its gross merchandise sales reached $2.58 billion in the latest quarter, up 7.5% from a year earlier. In the first quarter of 2025, gross merchandise sales fell nearly 9% year over year. The company also raised its full-year gross merchandise sales outlook last month from low-single-digit growth to mid-single-digit growth.
Etsy said it is also working with ChatGPT and other AI platforms across advertising and one-click checkout inside chatbots. The company said it sold Depop to eBay in July and announced plans last month to cut about 12% of staff.