The Vogue Business AI Tracker

The Vogue Business AI Tracker keeps a record of the most important AI developments that will influence our industry and our world, each week. From venture capital investments and startup launches to product drops and regulatory updates, we’ll make sure you never miss a beat when it comes to the AI news that matters.

The news: L’Oréal and OpenAI announce partnership for AI in beauty product development, content creation, and product discovery.

Why it matters: L’Oréal Group has announced a strategic partnership with OpenAI, marking one of the beauty industry’s most significant moves yet into conversational commerce. Unveiled at the Vivatech conference in Paris, the partnership will explore applications across research, marketing and consumer discovery, while bringing L’Oreal’s brands into ChatGPT, including Maybelline New York. Maybelline will also be part of an experiment into the virtual try-on (VTO) of some beauty products by the two companies.

L’Oréal said it will also work with OpenAI to strengthen product discovery within ChatGPT across brands in the US, from Lancôme to Kérastase. Meanwhile, Skinceuticals, Cerave, and Garnier are all part of ChatGPT’s global ad pilot.

It’s another sign that large fashion and beauty groups are investing in AIO, optimizing for AI assistants that are rapidly emerging as the next discovery layer. Experts are split, however, on whether VTO in beauty is something consumers actually want — some respondents to our Vogue Business AI consumer perception survey said it’s a category where influencer recommendations and in-store product testing are preferred.

The news: UK bans access to social media platforms for under-16s.

Why it matters: The UK is banning social media for under-16s, effective next year. Prime Minister Keir Starmer said the restrictions will be modeled on those set by the Australian government last December, comprising a ban for the age group on platforms where the “sole and significant purpose” is to facilitate social interaction. This will include Facebook, Instagram, Snapchat, Reddit, TikTok, X, YouTube and Twitch, likely alongside other platforms such as dating apps and Bluesky. Pinterest, YouTube Kids, and messenger apps like Whatsapp are not included in the ban.

The UK is going a step further than Australia, however, banning all platforms from offering live streaming to under-16s and prohibiting strangers from making contact with the age group. Gaming platforms like Roblox and Discord — also not included in the blanket ban — will still need to abide by these rules. AI chatbots enabling romantic companionship will be banned for under-18s.

It’s the latest sign that the anti-social media movement is reaching a tipping point, as the push to limit children’s exposure to addictive algorithms and other potential online harms extends beyond activist interests into the mainstream. Brands and marketers will need to adapt their strategies for how they reach these consumers, which will likely result in a much more fragmented marketing space. Experts say multiplayer games like Roblox and Fortnite — where under-16s are socializing more — could become an appealing alternative for brands.

The news: Meta launches AI agents for business users in Whatsapp monetization push.

Why it matters: Meta has introduced AI-powered business tools on Whatsapp, launching a Meta business AI agent, designed to handle customer interactions end-to-end — from answering customer queries and booking appointments, to recommending products and closing sales, without the need of a human. It’s one of Meta’s first moves into commercial-facing operations, outside its core advertising business, and unlocks a huge revenue stream for the tech giant as it continues to invest millions in AI.

Many luxury brands already use Whatsapp as an informal clienteling channel, for sales associates to maintain a direct, ongoing relationship with high-value customers. Embedding AI into that environment could allow brands to scale this communication beyond the highest value customers, without the need for hiring human teams. It’s also another sign of Big Tech’s push into conversational commerce.

But as brands look to build closer relationships with customers, the move also positions Meta as the third-party infrastructure layer through which those interactions increasingly flow. What’s more, Whatsapp’s appeal has long been its perception as a more private, encrypted space, but the introduction of AI-generated interactions could shift consumer perception of the space — particularly relevant for the luxury customers who value discretion and trust.

The news: Elon Musk’s SpaceX seeks to raise the world’s largest ever IPO.

Why it matters: Elon Musk’s space and AI company SpaceX is seeking to raise as much as $86 billion at a valuation of around $1.8 trillion, in what would be the world’s largest ever IPO, according to an amended IPO filing submitted last Wednesday. SpaceX is now framing itself as an AI infrastructure company as well as a space technology business that makes rockets and satellites, so proceeds from the IPO would go toward both its space and AI computing ambitions.

It comes just a week after Anthropic filed for a New York IPO with an expected valuation of $1 trillion. Both these valuations upon filing signal just how strongly markets are rewarding companies that can attach themselves to the AI infrastructure story, and points to a broader shift in where influence sits. As capital flows toward AI infrastructure companies, they can gain greater control over access, pricing, and performance — factors that will shape how widely the tech can be deployed across fashion.

The news: Anthropic files for a New York IPO that’s set to value the company at more than $1 trillion.

Why it matters: Anthropic closed a fresh funding round of $65 billion just last week, announcing a new valuation of $900 billion. The news pitches Anthropic slightly ahead of AI rival OpenAI, which is also planning to file for an IPO. (OpenAI was valued at $852 billion in March, when it raised its last funding round of $122 billion.) These are unprecedented sums of money, even within the Silicon Valley tech world, and signal just how bullish private investors are on the potential of AI.

If public market investors pour money into these companies upon listing, too, then a large part of both public and private capital will be concentrated in the AI sector. This is what some financial experts warn can cause a financial bubble to burst, while others believe the potential of this tech is fairly reflected by these amounts. Anthropic has seen big financial gains in the last year, with annualized revenues (the estimate of annual revenue based on recent performance) increasing fivefold from last year to $47 billion in May.

When startups confidentially file for an IPO, they do so to gauge investor interest — Anthropic could still decide to scrap its plans to go public, if the market is not favorable.

The news: Pope Leo XIV delivers his first encyclical, calling for AI to be regulated and “disarmed”.

Why it matters: Last week, Pope Leo XIV delivered his first encyclical, titled Magnifica Humanitas (“Magnificent Humanity”), and in it, he chose to focus on AI and the future of humanity. The Pope called for AI to be “disarmed”, warning against its use in manipulation, surveillance, and warfare, while urging that its development be guided by human dignity, ethical responsibility, and the common good.

His decision to focus on AI signals a broader cultural shift: AI is no longer just a technological issue, but a moral and societal one. The speech reflected the growing unease over the pace of technological adoption that can be felt across the world. Brands must now consider that AI governance is being reframed from a commercial responsibility to an ethical one, and as they accelerate investment in AI to improve operations and consumer-facing touchpoints, they should prepare for scrutiny over intent, authorship, and human agency.

The news: Google unveils its first AI smart glasses.

Why it matters: Google’s much-anticipated AI smart glasses have finally landed. Its Intelligent Eyewear range arrives a year after the tech company announced it was working with eyewear groups Warby Parker, Kering Eyewear, and Gentle Monster on a model to rival those of the Meta Ray-Bans. Unveiled on Tuesday, at the annual Google I/O developer conference, the frames were developed in partnership with Samsung, and have built-in speakers, cameras and microphones, so users can listen to music, make calls, and take photos. Google’s AI model, Google Gemini, is integrated within the glasses, to handle live prompts and enable users to look up information about their surroundings, and get live directions or translations.

Google and Gentle Monster’s collaborative debut design comes in the form of oval frames, while the Google x Warby Parker model offers a more traditional wayfarer shape in dark green nylon. Both eyewear groups will launch their full Intelligent Eyewear collections this fall, but did not specify how many designs will feature. Gentle Monster’s first collection will include audio glasses, with voice-assisted support coming later in the fall, while Warby Parker’s will feature “multiple” optical and sun styles that work with a broad range of prescriptions and lenses.