Core Insights - Etsy is focusing on artificial intelligence (AI) and has announced a leadership change with Josh Silverman stepping down as CEO after eight years, transitioning to executive chairman [2][3] Financial Performance - Etsy reported gross merchandise sales of $2.72 billion, reflecting a year-over-year decline of 6.5% [2] - The number of buyers on the platform decreased to 86.6 million, down 5% year over year, while the number of sellers fell to 5.5 million, a nearly 11% decline [2] Leadership Transition - Kruti Patel Goyal, previously Etsy's president and chief growth officer and former CEO of Depop, will take over as CEO [3] - Silverman emphasized the importance of this transition, stating it is the right time for new leadership to guide the company [3] Strategic Focus - The company is entering a new phase centered on leveraging AI to enhance personalization and transform the shopping experience [4] - Goyal outlined four strategic priorities aimed at achieving sustainable growth, including improving personalized discovery and enhancing buyer loyalty through initiatives like the Etsy Insider Loyalty program beta [4] AI Integration - Etsy's partnership with OpenAI allows users to purchase items directly through ChatGPT, integrating Etsy Payments [3] - The integration of AI is seen as a significant step in merging product discovery with payment processes, shifting visibility from traditional search engine optimization to AI optimization [5][6] Market Dynamics - The new AI-driven approach could fundamentally change how products are discovered and valued in the commerce ecosystem, with a warning that products not aligned with AI ranking may become invisible to consumers [6][7]