The world of online shopping has transformed drastically over the last few years, especially in the realm of fashion. For those who have embarked on the quest for the perfect bridesmaid dress, the experience is often riddled with overwhelming options and frustration. With an almost infinite array of styles, colors, and sizes, finding the right piece can feel like looking for a needle in a haystack. However, a tech startup named Daydream is aiming to alleviate this shopping turmoil by leveraging artificial intelligence to create a more intuitive and relatable search process.
Imagine a scenario where a user could simply express that they are on the hunt for a “revenge dress for a party in Sicily in July” or looking for “a summer bag” that multitasks, functioning perfectly for both work and cocktails. This is precisely the innovative approach that Daydream proposes. With bases in New York and San Francisco, the company is tapping into a growing need for personalized shopping experiences that do not feel like choreographed interactions with rigid search algorithms. According to a survey by Adobe Analytics, a noteworthy 39% of American consumers utilized generative AI for online shopping last year, and an even higher 53% expressed intent to use such technology in the coming year.
Despite facing competition from tech juggernauts like Meta and Amazon, who have introduced their own AI-driven shopping tools, Daydream possesses unique insights into the fashion retail landscape. CEO Julie Bornstein, with a rich background in e-commerce from her tenure as VP at Nordstrom and her roles at Sephora and Stitch Fix, strategically drives the vision of the company. With experience from founding The Yes, another AI shopping startup that was eventually sold to Pinterest, Bornstein brings a wealth of expertise that she believes sets Daydream apart.
She articulates a critical distinction, stating that larger corporations often lack the necessary passion and understanding to effectively use AI in the fashion category. They may have access to vast catalogs, but being able to recommend the right products to the right customers is what genuinely enhances the online shopping experience. The goal of Daydream is to utilize AI to shift engagement away from mere ad-based rankings, focusing instead on recommending products that authentically match user preferences—a significant departure from prevailing practices in the industry influenced by advertising dollars.
Daydream recently completed its initial funding round, raising an impressive $50 million from investors, including Google Ventures and model-entrepreneur Karlie Kloss. The platform operates almost like a personal stylist. It allows users to articulate their needs in natural language rather than forcing them to wrestle with complex search terms. Moreover, users can upload images for inspiration, leading to curated recommendations from over 8,000 brand partners, including household names like Uniqlo and Gucci. As the user interacts with the platform, Daydream refines its recommendations based on learned insights from past searches and preferences.
Once a buyer finds a suitable product, they are directed to the original brand’s website to finalize their purchase, with Daydream receiving a commission on the sale. This model diverges from many of its competitors who often prioritize paid placements. According to Bornstein, such a revenue model can easily obscure genuine quality products, which raises significant concerns for discerning consumers.
During a trial run of Daydream, a search for a “white, fitted button-up shirt for the office with no pockets” resulted in a fitting recommendation— a $145 long-sleeve shirt from Theory. However, not all outputs were spot-on; for instance, searching for a “mother of the bride dress for a summer wedding in California” yielded some rather incongruous results, including slip dresses more suited for different occasions.
Bornstein acknowledges the need for continual refinement of their AI models through user feedback to enhance the quality of suggestions over time. As they progress, the AI will grow adept at interpreting various contextual clues, such as climate or formality requirements linked to specific user queries.
Having launched its web version recently, still in its beta phase, Daydream plans to introduce a mobile app in the upcoming months. Bornstein envisions that AI will not simply be a tool for fashion shopping; she imagines a future where it will assist users in coordinating new purchases with current items in their wardrobes, blending practical recommendation with effortless styling.
Reflecting on the evolution of her vision, Bornstein expresses how the emergence of generative AI and advanced language models has created new possibilities that she had looked for all along, though she initially lacked the terminology to encapsulate them. In summary, Daydream stands at the frontier of a new era in retail, where technology and personalized shopping converge to enhance the overall consumer experience.
