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Etsy Revolutionizes Gift Selection with Innovative AI-Powered Tool

Gift Mode is designed to assist shoppers in finding the perfect gift for any occasion
Cover Image Source: AI-powered shopping | Etsy
Cover Image Source: AI-powered shopping | Etsy

In a groundbreaking move to enhance the shopping experience for its users, Etsy has unveiled a new feature that combines the power of artificial intelligence (AI) with human curation. This cutting-edge tool, known as Gift Mode, is designed to assist shoppers in finding the perfect gift for any occasion while addressing common challenges faced by gift-givers.

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Etsy CEO Josh Silverman announced the launch of the company's latest feature, stating, "Gift Mode helps to solve two of the most vexing problems for givers. One, finding the perfect gift, something that feels creative and personal even if the gifter doesn’t know a ton about the recipient. Two, relieving the stress around procrastination and the gift arriving on time."

To utilize Gift Mode, shoppers must input information about the recipient, enabling the platform to suggest curated items from Etsy sellers. The selection is powered by Etsy's machine learning (ML) technology, which has been trained on over 200 different personas. These personas, such as "The Music Lover," "The Adventurer," and "The Pet Parent," guide the algorithm in recommending gifts that align with the recipient's personality and preferences.

One of the standout features of Gift Mode is its ability to accommodate last-minute shoppers. The tool can send a dedicated gift page at a time chosen by the gift-giver, notifying the recipient about the upcoming gift and providing real-time tracking information. This not only adds an element of surprise but also ensures that the gift arrives on time, alleviating the stress associated with delayed deliveries.


Silverman emphasized that Gift Mode makes thoughtfulness effortless, using the collection of over 100 million items on Etsy and bringing curation to a larger scale. The ultimate goal for the company is to position itself as the go-to destination for gifting, aiming to increase the current 12% share of shoppers who consider Etsy when looking for gifts.

This innovative feature will be a focal point in Etsy's marketing efforts, including a high-profile appearance in a Super Bowl commercial. The company aims to showcase Gift Mode as a game-changer in the world of online shopping, particularly in the context of gift selection.

Etsy | Getty Images
Image Source: Etsy | Getty Images

However, the move towards integrating AI into the shopping experience aligns with broader industry trends. PYMNTS Intelligence reports that generative AI is playing a significant role in personalizing the retail shopping experience. The study indicates that 92% of companies are using AI-powered personalization to drive growth, with 44% of consumers expressing openness to using chatbots for product information before making purchase decisions.

For Etsy, the introduction of Gift Mode comes as part of a smart strategy to refine the shopping experience and solidify its position as a premier destination for unique and personalized merchandise. The company recognizes the challenges presented by the current macroeconomic conditions but remains committed to innovation and adaptation.