You can earn passive income by selling AI-generated art on Etsy using print-on-demand services. To succeed, research popular designs and use high-quality AI tools. Partner with a print-on-demand provider for order fulfillment. Optimize Etsy listings with compelling images and keywords. Offer free shipping, and research competitors' pricing. Regularly create new artwork, and stay up-to-date with trends. With proper research and consistency, you can generate substantial earnings from this business model.