Etsy launches ‘Gift Mode,’ a new AI-powered feature that generates 200+ gift guides

Etsy has launched a new AI-powered feature called “Gift Mode” to help users discover personalized gift ideas based on specific preferences. The feature is essentially an online quiz that inquires about the recipient and the occasion, generating personalized gift guides from over 100 million items listed on the platform. It offers a “gift teaser” option to send recipients a sneak peek of the gift via email and plans to continually update its interests and personas based on emerging trends. The company hopes this new feature will alleviate the stress associated with selecting the perfect present and aims to become the go-to destination for gifting year-round. Etsy has leveraged machine learning, human curation, and OpenAI’s GPT-4 to develop this feature, focusing on listings that are “gifty” and sold by sellers who provide excellent customer service. The company has a history of leveraging AI in its search features and plans to further accelerate the transformation of its user experience with generative AI. Additionally, Etsy has recently introduced a new optional program called “Share & Save” to support sellers by reducing the transaction fee from 6.5% to 4% after making a sale.