Etsy Launches AI-Powered Gift Mode to Make Picking Presents Easier

Etsy Launches AI-Powered Gift Mode to Make Picking Presents Easier

Searching for the perfect gift can be frustrating, with two thirds of gift-givers in the U.S. struggling to find creative, thoughtful presents. Etsy is hoping its novel AI-prowered solution to this problem will attract users to its platform. Today the company announced the launch of Gift Mode—an interactive hub powered by AI and humans that provides tailored gift recommendations based on the recipient's unique interests and personality.

"Our vision is to create a gift shopping experience that supercharges everyone's gift-giving potential," wrote Etsy CEO Josh Silverman in the company's announcement. "From consideration, to discovery, to logistics, we will be a tailor-made, one-stop experience for every gifting occasion."

After entering details about the gift recipient, Etsy's machine learning algorithms will match shoppers with items from over 100 million listings on the site, sorted into over 200 "persona" categories like "The Music Lover", "The Adventurer", and "The Pet Parent." This personalization helps shoppers discover creative presents suited to the recipient's hobbies and lifestyle.

Additionally, Gift Mode allows shoppers to create gift teasers with notes and tracking information to send to recipients ahead of delivery. Procrastinators can also choose the exact date for these gift page reveals, helping last-minute shoppers stay on top of shipping deadlines while adding an element of surprise.

Etsy is heavily investing in Gift Mode and gifting-related features to cement its position as a top destination for present picking. Upcoming additions will further simplify sending timely, thoughtful gifts for any occasion. The launch also coincides with Etsy's first ever TV advertising campaign during high viewership sporting events over the next few months.

By combining the diversity of its marketplace with the personalization and convenience of Gift Mode, Etsy aims to "keep commerce human" while removing the stress from gift-giving. The new feature helps shoppers find heartfelt, customized presents suited to each exceptional recipient.

Chris McKay is the founder and chief editor of Maginative. His thought leadership in AI literacy and strategic AI adoption has been recognized by top academic institutions, media, and global brands.

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