Artificial Intelligence (AI) is gaining popularity across the tech sector, but it’s not just major tech companies who are investing in AI. Some craft and design marketplaces are using this new tech to improve their online business.
Etsy, a Brooklyn-based craft ecommerce site, announced that it purchased Blackbird Technologies, a startup that developed natural language processing algorithms, image recognition algorithms, and algorithms for analytics. Etsy plans to use the new technology to improve its search features on the site and assist its users.
According to Tech Crunch, all of Blackbird’s employees will be joining Etsy.
“The team possesses a deep expertise in Artificial Intelligence, search, and distributed systems and has direct experience working these areas for some of the largest technology companies in the world,” said Etsy officials in a statement.
At any given time, there are over 250,000 active sellers on Etsy that list, on average, more than 2 million items each month.
“Buyers come to Etsy.com for items they can’t find anywhere else and our goal is to help them discover exactly what they want among our 40 million unique listings,” said Etsy CEO Chad Dickerson. “Leveraging Blackbird’s technology, we believe we can enhance the buyer experience by making search quicker and easier and by surfacing even more relevant, tailored product recommendations. Our team has already made substantial enhancements to the search and discovery process.”
The Motley Fool reports that although the buyout specifics are unknown, the company’s revenue is up 39% from 2015, now totaling $167.2 million.
Artificial Intelligence technology has the potential to improve Etsy’s sales and revenue in a growing tech world. Roughly 59% of U.S. consumers admit wanting to receive promotions in real-time for items online. Etsy can use this new AI tech to improve their customer engagement.
Etsy has been acquiring companies over the last few years, but the Blackbird acquisition is the first since going public in 2015.