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AI startup Daydream revolutionises online fashion search

Online shopping for specific items like bridesmaid dresses can be challenging due to overwhelming choices. A new tech startup, Daydream, aims to simplify this. It uses AI to let users search for products by describing them in natural language, making the process easier and more intuitive.

For instance, a user could ask for a ‘revenge dress to wear to a party in Sicily in July,’ or ‘a summer bag to carry to work and cocktails after.’

Daydream, with staff based in New York and San Francisco, represents the latest venture in a growing trend of tech companies utilising AI to streamline and personalise online retail.

Consumer demand for such tools is evident: an Adobe Analytics survey of 5,000 US consumers revealed that 39% had used a generative AI tool for online shopping last year, with 53% planning to do so this year. Daydream faces competition from tech giants already active in this space.

Meta employs AI to facilitate seller listings and to target users with more relevant product advertisements. OpenAI has launched an AI agent capable of shopping across the web for users, and Amazon is trialling a similar feature.

Google has also introduced various AI shopping tools, including automated price tracking, a ‘circle to search’ function for identifying products in photos, and virtual try-on options for clothing.

Despite the formidable competition, Daydream’s CEO, Julie Bornstein, believes her company possesses a deeper understanding of the fashion and retail industries.

Bornstein’s extensive background includes helping build Nordstrom’s website as its vice president of e-commerce in the early 2000s and holding C-suite positions at Sephora and Stitch Fix. In 2018, she co-founded her first AI-powered shopping startup, The Yes, which was sold to Pinterest in 2022.

Bornstein asserts, ‘They don’t have the people, the mindset, the passion to do what needs to be done to make a category like fashion work for AI recommendations.’ She added, ‘Because I’ve been in this space my whole career, I know that having the catalogue with everything and being able to show the right person the right stuff makes shopping easier.’

Daydream has already secured $50 million in its initial funding round, attracting investors such as Google Ventures and model Karlie Kloss, founder of Kode With Klossy. The platform operates as a free, digital personal stylist.

Users can input their desired products using natural language, eliminating the need for complex Boolean search terms, thanks to its AI text recognition technology, or upload an inspiration photo.

Daydream then presents recommendations from over 8,000 brand partners, ranging from budget-friendly Uniqlo to luxury brand Gucci. Users can further refine their search through a chat interface, for example, by requesting more casual or less expensive alternatives.

As users interact more with the platform, it progressively tailors recommendations based on their search history, clicks, and saved items.

When customers are ready to purchase, they are redirected to the respective brand’s website to complete the transaction, with Daydream receiving a 20% commission on the sale.

Unlike many other major e-commerce players, Bornstein is deliberately avoiding ad-based rankings. She aims for products to appear on recommendation pages purely because they are a suitable match for the customer, not due to paid placements.

Bornstein stated, ‘As soon as Amazon started doing paid sponsorships, I’m like, ‘How can I find the real good product?’ She emphasised, ‘We want this to be a thing where we get paid when we show the customer the right thing.’

A recent CNN test of Daydream yielded mixed results. A search for a ‘white, fitted button-up shirt for the office with no pockets’ successfully returned a $145 cotton long-sleeve shirt from Theory that perfectly matched the description.

However, recommendations are not always flawless. A query for a ‘mother of the bride dress for a summer wedding in California’ presented several slinky slip dresses, some in white, alongside more formal styles, appearing more suitable for a bachelorette party.

Bornstein confirmed that the company continuously refined its AI models and gathered user feedback. She noted, ‘We want data on what people are doing so we can focus and learn where we do well and where we don’t.’

Part of this ongoing development involves training the AI to understand nuanced contextual cues, such as the implications of a ‘dress for a trip to Greece in August’ (suggesting hot weather) or an outfit for a ‘black-tie wedding’ (implying formality).

Daydream’s web version launched publicly last month, and it is currently in beta testing, with plans for an app release in the autumn. Bornstein envisions a future where AI extends beyond shopping, assisting with broader fashion needs like pairing new purchases with existing wardrobe items.

She concluded, ‘This was one of my earliest ideas, but I didn’t know the term (generative AI) and I didn’t know a large language model would be the unlock.’

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Delta Air Lines rolls out AI for personalised airfare

Delta Air Lines is shifting the landscape of airfare by leveraging AI to personalise ticket prices. Moving beyond fixed fares, Delta aims to tailor prices closely to each traveller.

Instead of static prices, the system now analyses customer habits, booking history, and even the time of day to predict an individual’s potential willingness to pay. By the end of the current year, Delta aims to set 20% of its ticket prices using AI dynamically.

The goal represents a significant, sevenfold increase from just twelve months prior. Such a high-tech approach could result in more advantageous deals or elevated costs, depending on a passenger’s unique circumstances and shopping behaviour.

It is crucial to understand how this system operates, Delta’s motivations, and its implications for consumer finances. Traditional ticket pricing has long relied on ‘fare buckets,’ where customers are categorised based on their booking method and timing.

Delta’s new AI ticket pricing system fundamentally shifts away from these static rates. It analyses real-time information to calculate precisely what a specific customer will likely spend on a seat for any given flight.

Glen Hauenstein, Delta’s President, describes this as a complete re-engineering of pricing. He characterises AI as a ‘super analyst’ working continuously, 24/7, to identify the optimal price for every traveller, every time.

The airline has collaborated with Fetcherr, which provides the underlying technological infrastructure and supports other global airlines. Airlines do not adopt advanced, high-tech pricing systems to reduce revenue.

Delta reports that initial results from its AI-driven pricing indicate ‘amazingly favourable’ revenues. The airline believes AI will maximise profits by more accurately aligning fares with each passenger’s willingness to pay.

However, this is determined by a vast array of data inputs, ranging from individual booking history to prevailing market trends. Delta’s core strategy is straightforward: to offer a price available for a specific flight, at a particular time, to you, the individual consumer.

Consumers who have previously observed frequent fluctuations in airfare should now anticipate even greater volatility. Delta’s new system could present a different price to one person compared to another for the same seat, with the calculation performed in real-time by the AI.

Passengers might receive special offers or early discounts if the AI identifies a need to fill seats quickly. However, discerning whether one is securing a ‘fair’ deal becomes significantly more challenging. The displayed price is now a function of what the AI believes an individual will pay, rather than a universal rate applicable to all.

The shift has prompted concerns among some privacy advocates. They worry that such personalised pricing could disadvantage customers who lack the resources or time to search extensively for the most favourable deals.

Consequently, those less able to shop around may be charged the highest prices. Delta has been approached for comment, and a spokesperson stated: ‘There is no fare product Delta has ever used, is testing, or plans to use that targets customers with individualised offers based on personal information or otherwise.

Various market forces have driven the dynamic pricing model used in the global industry for decades, with new tech streamlining this process. Delta always complies with regulations around pricing and disclosures.’

Delta’s openness regarding this significant policy change has attracted considerable national attention. Other airlines are already trialling their AI fare systems, and industry experts widely anticipate that the rest of the sector will soon follow suit.

Nevertheless, privacy advocates and several lawmakers are vocalising strong objections. Critics contend that allowing AI to determine pricing behind the scenes is akin to airlines ‘hacking our brains’ to ascertain the maximum price a customer will accept, as described by Consumer Watchdog.

The legal ramifications of this approach are still unfolding. While price variation based on demand or timing is not novel, the use of AI for ultra-personalised pricing raises uncomfortable questions about potential discrimination and fairness, particularly given prior research suggesting that economically disadvantaged customers frequently receive less favourable deals.

Delta’s AI pricing system personalises every airfare, making each search and price specific to the user. Universal ticket prices are fading as AI analyses booking habits and market conditions. This technology can quickly offer special deals to fill seats or raise prices if demand is detected.

Conversely, the price can increase if the system senses a greater willingness to pay. Shopping around is now an absolute necessity. Utilising a VPN can help outsmart the system by masking location and IP address, which prevents airlines from tracking searches and adjusting prices based on geographic region.

Making quick decisions might result in savings, but procrastination could lead to a price increase. Privacy is paramount; the airline gains insights into a user’s habits with every search. A digital footprint directly influences fares. In essence, consumers now possess both increased power and greater responsibility.

Being astute, flexible, and constantly comparing before purchasing is vital. Delta’s transition to AI-driven ticket pricing significantly shifts how consumers purchase flight tickets.

While offering potential for enhanced flexibility and efficiency, it simultaneously raises substantial questions concerning fairness, privacy, and transparency.

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Robot artist Ai-Da explores human self-perception

The world’s first ultra-realistic robot artist, Ai-Da, has been prompting profound questions about human-robot interactions, according to her creator.

Designed in Oxford by Aidan Meller, a modern and contemporary art specialist, and built in the UK by Engineered Arts, Ai-Da is a humanoid robot specifically engineered for artistic creation. She recently unveiled a portrait of King Charles III, adding to her notable portfolio.

Aidan Meller, Ai-Da’s creator, stated that working with the robot has evoked ‘lots of questions about our relationship with ourselves.’ He highlighted how Ai-Da’s artwork ‘drills into some of our time’s biggest concerns and thoughts.’

Ai-Da uses cameras in her eyes to capture images, which are then processed by AI algorithms and converted into real-time coordinates for her robotic arm, enabling her to paint and draw.

Mr Meller explained, ‘You can meet her, talk to her using her language model, and she can then paint and draw you from sight.’

He also observed that people’s preconceptions about robots are often outdated: ‘It’s not until you look a robot in the eye and they say your name that the reality of this new sci-fi world that we are now in takes hold.’

Ai-Da’s contributions to the art world continue to grow. She had produced and showcased her work at the AI for Good Global Summit 2024 in Geneva, Switzerland, an event under the auspices of the UN. That same year, her triptych of Enigma code-breaker Alan Turing sold for over £1 million at auction.

Her focus this year shifted to King Charles III, chosen because, as Mr Meller noted, ‘With extraordinary strides that are taking place in technology and again, always questioning our relationship to the environment, we felt that King Charles was an excellent subject.’

Buckingham Palace authorised the display of Ai-Da’s portrait of the King, despite the robot not meeting him. Ai-Da, connected to the internet, uses extensive data to inform her choice of subjects, with Mr Meller revealing, ‘Uncannily, and rather nerve-rackingly, we just ask her.’

The conversations generated inform the artwork. Ai-Da also painted a portrait of King Charles’s mother, Queen Elizabeth II, in 2023. Mr Meller shared that the most significant realisation from six years of working with Ai-Da was ‘not so much about how human she is but actually how robotic we are.’

He concluded, ‘We hope Ai-Da’s artwork can be a provocation for that discussion.’

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Guess AI model sparks fashion world debate

A striking new ‘supermodel’ has appeared in the August print edition of Vogue, featuring in a Guess advert for their summer collection. Uniquely, the flawless blonde model is not real, as a small disclaimer reveals she was created using AI.

While Vogue clarifies the AI model’s inclusion was an advertising decision, not editorial, it marks a significant first for the magazine and has ignited widespread controversy.

The development raises serious questions for real models, who have long campaigned for greater diversity, and consumers, particularly young people, are already grappling with unrealistic beauty standards.

Seraphinne Vallora, the company behind the controversial Guess advert, comprises founders Valentina Gonzalez and Andreea Petrescu. They told the BBC that Guess’s co-founder, Paul Marciano, approached them on Instagram to create an AI model for the brand’s summer campaign.

Valentina Gonzalez explained, ‘We created 10 draft models for him and he selected one brunette woman and one blonde that we developed further.’ Petrescu described AI image generation as a complex process, with their five employees taking up to a month to create a finished product, charging clients like Guess up to the low six figures.

However, plus-size model Felicity Hayward, with over a decade in the industry, criticised the use of AI models, stating it ‘feels lazy and cheap’ and worried it could ‘undermine years of work towards more diversity in the industry.’

Hayward believes the fashion industry, which saw strides in inclusivity in the 2010s, has regressed, leading to fewer bookings for diverse models. She warned, ‘The use of AI models is another kick in the teeth that will disproportionately affect plus-size models.’

Gonzalez and Petrescu insist they do not reinforce narrow beauty standards, with Petrescu claiming, ‘We don’t create unattainable looks – the AI model for Guess looks quite realistic.’ They contended, ‘Ultimately, all adverts are created to look perfect and usually have supermodels in, so what we do is no different.’

While admitting their company’s Instagram shows a lack of diversity, Gonzalez explained to the BBC that attempts to post AI images of women with different skin tones did not gain traction, stating, ‘people do not respond to them – we don’t get any traction or likes.’

They also noted that the technology is not yet advanced enough to create plus-size AI women. However, this mirrors a 2024 Dove campaign that highlighted AI bias by showing image generators consistently producing thin, white, blonde women when asked for ‘the most beautiful woman in the world.’

Vanessa Longley, CEO of eating disorder charity Beat, found the advert ‘worrying,’ telling the BBC, ‘If people are exposed to images of unrealistic bodies, it can affect their thoughts about their own body, and poor body image increases the risk of developing an eating disorder.’

The lack of transparent labelling for AI-generated content in the UK is also a concern, despite Guess having a small disclaimer. Sinead Bovell, a former model and now tech entrepreneur, told the BBC that not clearly labelling AI content is ‘exceptionally problematic’ due to ‘AI is already influencing beauty standards.’

Sara Ziff, a former model and founder of Model Alliance, views Guess’s campaign as “less about innovation and more about desperation and need to cut costs,’ advocating for ‘meaningful protections for workers’ in the industry.

Seraphinne Vallora, however, denies replacing models, with Petrescu explaining, ‘We’re offering companies another choice in how they market a product.’

Despite their website claiming cost-efficiency by ‘eliminating the need for expensive set-ups… hiring models,’ they involve real models and photographers in their AI creation process. Vogue’s decision to run the advert has drawn criticism on social media, with Bovell noting the magazine’s influential position, which means they are ‘in some way ruling it as acceptable.’

Looking ahead, Bovell predicts more AI-generated models but not their total dominance, foreseeing a future where individuals might create personal AI avatars to try on clothes and a potential ‘society opting out’ if AI models become too unattainable.

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The US push for AI dominance through openness

In a bold move to maintain its edge in the global AI race—especially against China—the United States has unveiled a sweeping AI Action Plan with 103 recommendations. At its core lies an intriguing paradox: the push for open-source AI, typically associated with collaboration and transparency, is now being positioned as a strategic weapon.

As Jovan Kurbalija points out, this plan marks a turning point where open-weight models are framed not just as tools of innovation, but as instruments of geopolitical influence, with the US aiming to seed the global AI ecosystem with American-built systems rooted in ‘national values.’

The plan champions Silicon Valley by curbing regulations, limiting federal scrutiny, and shielding tech giants from legal liability—potentially reinforcing monopolies. It also underlines a national security-first mentality, urging aggressive safeguards against foreign misuse of AI, cyber threats, and misinformation. Notably, it proposes DARPA-led initiatives to unravel the inner workings of large language models, acknowledging that even their creators often can’t fully explain how these systems function.

Internationally, the plan takes a competitive, rather than cooperative, stance. Allies are expected to align with US export controls and values, while multilateral forums like the UN and OECD are dismissed as bureaucratic and misaligned. That bifurcation risks alienating global partners—particularly the EU, which favours heavy AI regulation—while increasing pressure on countries like India and Japan to choose sides in the US–China tech rivalry.

Despite its combative framing, the strategy also nods to inclusion and workforce development, calling for tax-free employer-sponsored AI training, investment in apprenticeships, and growing military academic hubs. Still, as Kurbalija warns, the promise of AI openness may clash with the plan’s underlying nationalistic thrust—raising questions about whether it truly aims to democratise AI, or merely dominate it.

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AI reshaping the US labour market

AI is often seen as a job destroyer, but it’s also emerging as a significant source of new employment, according to a new Brookings report. The number of job postings mentioning AI has more than doubled in the past year, with demand continuing to surge across various industries and regions.

Over the past 15 years, AI-related job listings have grown nearly 29% annually, far outpacing the 11% growth rate of overall job postings in the broader economy.

Brookings based its findings on data from Lightcast, a labour market analytics firm, and noted rising demand for AI skills across sectors, including manufacturing. According to the US Census Bureau’s Business Trends Survey, the share of manufacturers using AI has jumped from 4% in early 2023 to 9% by mid-2025.

Yet, AI jobs still form a small part of the market. Goldman Sachs predicts widespread AI adoption will peak in the early 2030s, with a slower near-term influence on jobs. ‘AI is visible in the micro labour market data, but it doesn’t dominate broader job dynamics,’ said Joseph Briggs, an economist at Goldman Sachs.

Roles range from AI engineers and data scientists to consultants and marketers learning to integrate AI into business operations responsibly and ethically. In 2025, over 80,000 job postings cited generative AI skills—up from fewer than 4,000 in 2010, Brookings reported, indicating explosive long-term growth.

Job openings involving ‘responsible AI’—those addressing ethical AI use in business and society—are also rising, according to data from Indeed and Lightcast. ‘As AI evolves, so does what counts as an AI job,’ said Cory Stahle of the Indeed Hiring Lab, noting that definitions shift with new business applications.

AI skills carry financial value, too. Lightcast found that jobs requiring AI expertise offer an average salary premium of $18,000, or 28% more annually. Unsurprisingly, tech hubs like Silicon Valley and Seattle dominate AI hiring, but job growth spreads to regions like the Sunbelt and the East Coast.

Mark Muro of Brookings noted that universities play a key role in AI job growth across new regions by fuelling local innovation. AI is also entering non-tech fields such as finance, human resources, and marketing, with more than half of AI-related postings now being outside IT roles.

Muro expects more widespread AI adoption in the next few years, as employers gain clarity on its value, limitations and potential for productivity. ‘There’s broad consensus that AI boosts productivity and economic competitiveness,’ he said. ‘It energises regional leaders and businesses to act more quickly.’

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Trump pushes for ‘anti-woke’ AI in US government contracts

Tech firms aiming to sell AI systems to the US government will now need to prove their chatbots are free of ideological bias, following a new executive order signed by Donald Trump.

The measure, part of a broader plan to counter China’s influence in AI development, marks the first official attempt by the US to shape the political behaviour of AI in services.

It places a new emphasis on ensuring AI reflects so-called ‘American values’ and avoids content tied to diversity, equity and inclusion (DEI) frameworks in publicly funded models.

The order, titled ‘Preventing Woke AI in the Federal Government’, does not outright ban AI that promotes DEI ideas, but requires companies to disclose if partisan perspectives are embedded.

Major providers like Google, Microsoft and Meta have yet to comment. Meanwhile, firms face pressure to comply or risk losing valuable public sector contracts and funding.

Critics argue the move forces tech companies into a political culture war and could undermine years of work addressing AI bias, harming fair and inclusive model design.

Civil rights groups warn the directive may sideline tools meant to support vulnerable groups, favouring models that ignore systemic issues like discrimination and inequality.

Policy analysts have compared the approach to China’s use of state power to shape AI behaviour, though Trump’s order stops short of requiring pre-approval or censorship.

Supporters, including influential Trump-aligned venture capitalists, say the order restores transparency. Marc Andreessen and David Sacks were reportedly involved in shaping the language.

The move follows backlash to an AI image tool released by Google, which depicted racially diverse figures when asked to generate the US Founding Fathers, triggering debate.

Developers claimed the outcome resulted from attempts to counter bias in training data, though critics labelled it ideological overreach embedded by design teams.

Under the directive, companies must disclose model guidelines and explain how neutrality is preserved during training. Intentional encoding of ideology is discouraged.

Former FTC technologist Neil Chilson described the order as light-touch. It does not ban political outputs; it only calls for transparency about generating outputs.

OpenAI said its objectivity measures align with the order, while Microsoft declined to comment. xAI praised Trump’s AI policy but did not mention specifics.

The firm, founded by Elon Musk, recently won a $200M defence contract shortly after its Grok chatbot drew criticism for generating antisemitic and pro-Hitler messages.

Trump’s broader AI orders seek to strengthen American leadership and reduce regulatory burdens to keep pace with China in the development of emerging technologies.

Some experts caution that ideological mandates could set a precedent for future governments to impose their political views on critical AI infrastructure.

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Democratising inheritance: AI tool handles estate administration

Lauren Kolodny, who early backed Chime and earned a spot on the Forbes Midas list, is leading a $20 million Series A funding round into Alix, a San Francisco-based startup using AI to revolutionise estate settlement. Founder Alexandra Mysoor conceived the idea after spending nearly 1,000 hours over 18 months managing a friend’s family estate, highlighting a widespread, emotionally taxing administrative gap.

Using AI agents, Alix automates tedious elements of the estate process, including scanning documents, extracting data, pre-populating legal forms, and liaising with financial institutions. This contrasts sharply with the traditional, costly probate system. The startup’s pricing model charges around 1% of estate value, translating to approximately $9,000–$12,000 for smaller estates.

Kolodny sees Alix as part of a new wave of startups harnessing AI to democratise services once accessible only to high-net-worth individuals. As trillions of dollars transfer to millennials and Gen Z in the coming decades, Alix aims to simplify one of the most complex and emotionally fraught administrative tasks.

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Teachers and students warn: AI is eroding engagement

A student from San Jose and an English teacher in Chicago co-authored a Boston Globe opinion warning that widespread use of AI in schools damages the vital student-teacher bond.

While marketed as efficiency boosters, AI tools encourage students to forgo independent thinking.

Many simply generate entire assignments via AI, reformat the text to avoid detection, and undermine honest academic interaction.

Educators report feeling increasingly marginalised as AI handles much of their workload, including grading, lesson planning, and feedback within classrooms.

Though schools and tech companies promote these tools as educational enhancements, many schools have eroded trust, as teachers struggle to assess real student ability.

The authors call for a return to supervised in-class assignments, using pen and paper, strict scrutiny of AI vendors in education, and outright bans on unsupervised AI classroom tools to help reset the learning relationship.

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Microsoft hacking campaign expands into ransomware attacks

A state-aligned cyber-espionage campaign exploiting Microsoft server software vulnerabilities has escalated to ransomware deployment, according to a Microsoft blog post published late Wednesday.

The group, dubbed ‘Storm-2603’ by Microsoft, is now using the SharePoint vulnerability to spread ransomware that can lock down systems and demand digital payments. This shift suggests a move from espionage to broader disruption.

according to Eye Security, a cybersecurity firm from the Netherlands, the number of known victims has surged from 100 to over 400, with the possibility that the true figure is likely much higher.

‘There are many more, because not all attack vectors have left artefacts that we could scan for,’ said Eye Security’s chief hacker, Vaisha Bernard.

One confirmed victim is the US National Institutes of Health, which isolated affected servers as a precaution. Reports also indicate that the Department of Homeland Security and several other agencies have been impacted.

The breach stems from an incomplete fix to Microsoft’s SharePoint software vulnerability. Both Microsoft and Google-owner Alphabet have linked the activity to Chinese hackers—a claim Beijing denies.

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