ETSY Launches App Within ChatGPT in Latest AI Push

• Etsy App integration in ChatGPT is meant to improve search capabilities.
• Conversational AI allows us to finally match the human creativity of our sellers, says CEO.
• App is a part of the broader ‘Gift Mode’ initiative. 

Etsy (ETSY) on Tuesday announced the launch of its app in ChatGPT, which will allow users to search and compare Etsy items directly in a conversational tone, building on Etsy’s broader push to integrate AI into its catalogs. 

According to Etsy, a user can tag the firm on ChatGPT and type a prompt in a conversational format like, “@Etsy Help me find a Mother’s Day gift under $100 for my mom who loves gardening,”  and the Etsy app in ChatGPT provides relevant listing results shoppers can look through and compare.

Etsy plans to use the feature to quickly learn how sellers appear in this emerging channel and optimize it accordingly. 

These advancements are part of Etsy’s broader AI strategy, which already includes a suite of seller tools and an AI-driven discovery experience centered on curated collections. To improve transparency amid the rise of AI-generated art, Etsy also launched a "Designed" tag in 2024 to clearly mark AI-produced content on its site.

Quicker integration of AI tools is proving important to Etsy and its peers, such as eBay and Pinterest, which are also aggressively investing in integrating AI into their search boxes to boost advertising income. 

"For Etsy, search has always been a unique challenge because our items aren't standardized," said CEO Josh Silverman. "Conversational AI allows us to finally match the human creativity of our sellers with a search experience that feels just as personal." 

The ChatGPT app is currently in a rollout phase, part of a broader "Gift Mode" initiative that uses AI to identify the perfect item based on recipient personas, according to Etsy. 

ETSY Retail View 

Retail sentiment on Stocktwits was ‘bullish’ and message volumes were ‘high’ 

Analysts have a 12-month price target of $71.72 per share on ETSY, implying a potential return of 14% as of Monday’s close, according to data from Koyfin. 

The stock dropped 1.4% on Tuesday and has gained about 15% year-to-date. 

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