One of the most consequential decisions facing chief executives today is determining which parts of the artificial intelligence wave to adopt and which to reject. eBay CEO Jamie Iannone has drawn a clear line: the company has banned autonomous AI shopping agents from its marketplace while actively encouraging sellers to leverage eBay's own AI tools to create more compelling product listings.

Iannone, who has led eBay since 2020, described the strategy during an interview conducted from a trading-card convention in Chicago. His remarks came as the company closed a $50 million chapter tied to its past and launched a $1.4 billion bet on its future. The former resolves litigation involving former CEO Devin Wenig, in which former employees targeted a couple with threats and bizarre deliveries in 2019 because their newsletter was critical of the site. The latter finalizes the acquisition of Depop, a fashion resale platform popular with millennials and Gen Z.

For Iannone, the strategic priority now is to double down on what eBay calls "non-new-in-season" — a category encompassing used and refurbished items that do not compete head-on with e-commerce giants like Walmart and Amazon. The secondhand resale market has expanded in recent years, with platforms such as Poshmark, ThredUp, and Vinted competing for buyers seeking value and sustainability, making eBay's positioning in this segment increasingly consequential.

There is strong evidence the approach is paying off. eBay, ranked No. 353 on the Fortune 500, reported that revenue rose 15% in the second quarter to $3.1 billion, while net income climbed 51% to $552 million, prompting the company to raise its full-year guidance.

Although eBay sellers are predominantly amateurs, AI is giving them access to professional-grade capabilities. The company's "magical" listing feature extrapolates product details from images. "You just basically hold your phone up to something and AI guides you" on how to describe it, price it, ship it, and more, Iannone said. "When a user uses magical listings, we see 50% more listings per lister in the U.S. and the value of those customers using it is greater, meaning they're selling more."

New technology also introduces new challenges. "We've authenticated over 15 million items… to the best of my knowledge, we've never had a counterfeit get through," Iannone noted. Third-party AI agents that autonomously scrape sites and purchase on behalf of customers could disrupt retail marketplaces like eBay, which is likely why the platform has prohibited them. While several major technology and e-commerce companies are developing AI-powered shopping assistants, eBay's decision to restrict autonomous third-party agents sets it apart from platforms embracing broader automated purchasing workflows. Iannone emphasized that his focus remains on enhancing the human experience on the platform.

"It's why I love days like today where I'm interacting with top sellers," he said.

This story was originally featured on Fortune.com.