Online marketplace Etsy is leveraging AI to create an enhanced customer experience and shared plans to continue deploying AI technology over an earnings call.
The e-commerce giant rolled out a number of AI features in partnership with third-party platforms, including OpenAI and Microsoft Copilot.
Additionally, the company used AI to create push notifications, emails, personalized homepages, and marketing copy.
As a result, the buyer conversion rate and number of monthly active users went up in Q1 of 2025.
Josh Silverman, CEO of Etsy, said: “We believe these efforts are beginning to fuel a stronger customer relationship flywheel, powered by new experiences that capture more and better data, which feeds advanced artificial intelligence and machine learning to deliver deeper personalization to drive buyer engagement and frequency over time.”
Moving forward, the company plans to continue leveraging AI tools to improve customer engagement.
Silverman added: “We believe that being selected as early research partners for both of these top AgenTic AI products is indicative of our unique and compelling offering, which is quite exciting as they potentially become more prevalent in helping people to shop.”
The retailer recently reported mixed results for Q1 2025, with its consolidated revenue inching up by 0.8% to $651.2 million while its gross merchandise sales plunged by 9% to $2.3 billion.
The company also experienced a slowdown in the number of active customers, with its active buyers falling by 3.4% to 88.5 million.
However, Depop delivered its strongest financial performance for the company since its acquisition in 2021.
As part of its business strategy, the online retailer sold Reverb to focus on its core brands, Etsy and Depop.
In March the company also appointed a new technology chief and an interim Depop CEO.
Using AI to speed up tasks is a growing trend among online retailers in the US, with a survey revealing that e-commerce businesses spent an average of $400k on AI in 2024.
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