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Cloudflare Debuts Bot Blocker to Help ‘Internet Survive Age of AI’

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Software firm Cloudflare has introduced a tool to block bot crawlers from accessing web content without permission.

The new offering, announced Tuesday (July 1), lets website owners decide if they want artificial intelligence (AI) crawlers to access their content, and determine how AI firms can use it. It also lets site owners set a price for access via a “pay per crawl” model.

“For decades, the Internet has operated on a simple exchange: search engines index content and direct users back to original websites, generating traffic and ad revenue for websites of all sizes,” the company said in a news release. “This cycle rewards creators that produce quality content with money and a following, while helping users discover new and relevant information.”

But that model, Cloudflare contended, is broken, with AI crawlers collecting things like words and images to generate answers without sending visitors to the initial source, robbing creators of revenue and the satisfaction of knowing someone is viewing their work.

“If the Internet is going to survive the age of AI, we need to give publishers the control they deserve and build a new economic model that works for everyone — creators, consumers, tomorrow’s AI founders, and the future of the web itself,” said Matthew Prince, co-founder and CEO of Cloudflare.

“Original content is what makes the Internet one of the greatest inventions in the last century, and it’s essential that creators continue making it,” Prince added. “AI crawlers have been scraping content without limits. Our goal is to put the power back in the hands of creators, while still helping AI companies innovate.”

Writing about this issue last year, PYMNTS noted the significant financial implications of content scraping, as each company invests heavily in researching, writing and publishing website content. Experts argued that allowing bots to scrape this material freely undermines this work while leading to derivative content that potentially outranks the original on search engines.

“Beyond content theft, scraping can have detrimental effects on website performance,” that report said. “Unchecked bot activity may overload servers, slow down websites and skew analytics data, potentially increasing operational costs. These consequences underscore the urgency of many content providers implementing robust protective measures.”

All the same, that report said, experts have been divided on effectiveness of new anti-scraping tools, with some cautioning that their track record is still unproven, and others more optimistic about their potential.

At the time, Cloudflare had just introduced another tool to fight AI-data harvesting, which Pankaj Kumar, CEO of Naxisweb, acknowledged in an interview with PYMNTS.

“Its purposeful blockage focuses exclusively on AI bots so that people can still visit the site or search engine robots can continue to crawl it. Search engine optimization (SEO) performance is not compromised, while unauthorized scraping is prevented by selective blocking,” Kumar said.



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Searching for boundaries in the AI jungle

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Stamatis Gatirdakis, co-founder and president of the Ethikon Institute, still remembers the first time he used ChatGPT. It was the fall of 2022 and a fellow student in the Netherlands sent him the link to try it out. “It made a lot of mistakes back then, but I saw how it was improving at an incredible rate. From the very first tests, I felt that it would change the world,” he tells Kathimerini. Of course, he also identified some issues, mainly legal and ethical, that could arise early on, and last year, realizing that there was no private entity that dealt exclusively with the ethical dimension of artificial intelligence, he decided to take the initiative.

He initially turned to his friends, young lawyers like him, engineers and programmers with similar concerns. “In the early days, we would meet after work, discussing ideas about what we could do,” recalls Maria Voukelatou, executive director at Ethikon and lawyer specialized in technology law and IP matters. Her master’s degree, which she earned in the Netherlands in 2019, was on the ethics and regulatory aspects of new technologies. “At that time, the European Union’s white paper on artificial intelligence had just been released, which was a first, hesitant step. But even though technology is changing rapidly, the basic ethical dilemmas and how we legislate remain constant. The issue is managing to balance innovation with citizen protection,” she explains.

Together with three other Greeks (Apostolos Spanos, Michael Manis and Nikos Vadivoulis), they made up the institute’s founding team, and sought out colleagues abroad with experience in these issues. Thus, Ethikon was created – a nonprofit company that does not provide legal services, but implements educational, research and social awareness actions on artificial intelligence.

Stamatis Gatirdakis, co-founder and president of the Ethikon Institute.

Copyrights

One of the first issues they addressed was copyrights. “In order not to stop the progress of technology, exceptions were initially made so that these models of productive artificial intelligence could use online content for educational purposes, without citing the source or compensating the creators,” explains Gatirdakis, adding that this resulted in copyrights being sidelined. “The battle between creators and the big tech giants has been lost. But because companies don’t want them against them, they have started making commercial agreements, whereby every time their data is used to produce answers, they receive percentages on a calculated model.”

Beyond compensation, another key question arises: Who is ultimately the creator of a work produced through artificial intelligence? “There are already conflicting court decisions. In the US, they argue that artificial intelligence cannot produce an ‘original’ work and that the work belongs to the search engine companies,” says Voukelatou. A typical example is the comic book, ‘Zarya of the Dawn,’ authored by artist and artificial intelligence (AI) consultant Kris Kashtanova, with images generated through the AI platform Midjourney. The US Copyright Office rejected the copyright application for the images in her book when it learned that they were created exclusively by artificial intelligence. On the contrary, in China, in corresponding cases, they ruled that because the user gives the exact instructions, he or she is the creator.

Personal data

Another crucial issue is the protection of personal data. “When we upload notes or files, what happens to all this content? Does the algorithm learn from them? Does it use them elsewhere? Presumably not, but there are still no safeguards. There is no case law, nor a clear regulatory framework,” says Voukelatou, who mentions the loopholes that companies exploit to overcome obstacles with personal data. “Like the application that transforms your image into a cartoon by the famous Studio Ghibli. Millions of users gave consent for their image to be processed and so this data entered the systems and trained the models. If a similar image is subsequently produced, it no longer belongs to the person who first uploaded it. And this part is legally unregulated.”

The problem, they explain, is that the development of these technologies is mainly taking place in the United States and China, which means that Europe remains on the sidelines of a meaningful discussion. The EU regulation on artificial intelligence (AI Act), first presented in the summer of 2024, is the first serious attempt to set a regulatory framework. Members of Ethikon participated in the consultation of the regulation and specifically focused on the categorization of artificial intelligence applications based on the level of risk. “We supported with examples the prohibition of practices such as ‘social scoring’ adopted by China, where citizens are evaluated in real time through surveillance cameras. This approach was incorporated and the regulation explicitly prohibits such practices,” says Gatirdakis, who participated in the consultation.

“The final text sets obligations and rules. It also provides for strict fines depending on turnover. However, we are in a transition period and we are all waiting for further guidelines from the European Union. It is assumed that it will be fully implemented in the summer of 2026. However, there are already delays in the timetable and in the establishment of the supervisory authorities,” the two experts said.

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Maria Voukelatou, executive director at Ethikon and lawyer specialized in technology law and IP matters.

The team’s activities

Beyond consultation, the Ethikon team is already developing a series of actions to raise awareness among users, whether they are business executives or students growing up with artificial intelligence. The team’s executives created a comic inspired by the Antikythera Mechanism that explains in a simple way the possibilities but also the dangers of this new technology. They also developed a generative AI engine based exclusively on sources from scientific libraries – however, its use is expensive and they are currently limiting it to pilot educational actions. They recently organized a conference in collaboration with the Laskaridis Foundation and published an academic article on March 29 exploring the legal framework for strengthening of copyright.

In the article, titled “Who Owns the Output? Bridging Law and Technology in LLMs Attribution,” they analyze, among other things, the specific tools and techniques that allow the detection of content generated by artificial intelligence and its connection to the data used to train the model or the user who created it. “For example, a digital signature can be embedded in texts, images or videos generated by AI, invisible to the user, but recognizable with specific tools,” they explain.

The Ethikon team has already begun writing a second – more technical – academic article, while closely monitoring technological developments internationally. “In 2026, we believe that we will be much more concerned with the energy and environmental footprint of artificial intelligence,” says Gatirdakis. “Training and operating models requires enormous computing power, resulting in excessively high energy and water consumption for cooling data centers. The concern is not only technical or academic – it touches the core of the ethical development of artificial intelligence. How do we balance innovation with sustainability.” At the same time, he explains, serious issues of truth management and security have already arisen. “We are entering a period where we will not be able to easily distinguish whether what we see or hear is real or fabricated,” he continues. 

In some countries, the adoption of technology is happening at breakneck speed. In the United Arab Emirates, an artificial intelligence system has been developed that drafts laws and monitors the implementation of laws. At the same time, OpenAI announced a partnership with the iPhone designer to launch a new device that integrates artificial intelligence with voice, visual and personal interaction in late 2026. “A new era seems to be approaching, in which artificial intelligence will be present not only on our screens but also in the natural environment.” 





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Martin Wiggen: Oil Inventories Still Low

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Since global oil inventories are still low, there is little risk that OPEC’s decision to increase production will lead to a supply shock says Nadia Martin Wiggen, Director at Svelland Capital. Nadia spoke to Francine Lacqua on ‘Bloomberg: The Pulse’. (Source: Bloomberg)



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VC-Backed Startups That Stitch AI And Fashion Together See Strong Investor Interest

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Venture capitalists, as a group, aren’t exactly notorious for their keen fashion sense, but many have taken a strong interest in backing startups that thread AI technology into the apparel industry.

Overall numbers are still relatively small for this emerging sector, but venture investment in fashion-related AI startups has risen or held steady in the past five-plus years. That’s even as VC funding generally has fallen from its pandemic-era highs, Crunchbase data shows. 

Funding to startups at the intersection of AI and apparel spiked to $162 million in 2022 — when China-based Zhiyi Tech, which helps clothing brands spot and predict fashion trends, raised $100 million alone — and has clocked in around $100 million annually since then.

Investors’ interest in fashion-related tech makes sense, given that as a species, we’re estimated to spend an astonishing $1.8 trillion globally each year on attiring ourselves. That figure is projected to climb to $2.3 trillion by 2030.

The true economic and environmental costs of the fashion industry are of course much higher, by the time you account for production waste and pollution, the resources that go into shipping clothes halfway across the world, and frequent returns and exchanges — not to mention concerns about labor conditions in garment factories.

We identified dozens of companies operating at the fashion-and-AI intersection that raised venture funding in recent years, many of them working on issues such as more efficient manufacturing or faster trend-spotting. Some offer AI-driven creative design tools, others are focused on AI-enabled demand prediction or manufacturing, and several companies offer personalized shopping or customized garments. Let’s take a closer look.

Predicting fashion (before it’s no longer fashionable)

The best-funded startup at the intersection of fashion and AI appears to be Zhiyi Tech. The Xiaoshan, China-based company, which works with many China-based apparel companies, searches the internet and social media for trending designs, and combines that with sales data from e-commerce platforms to help brands quickly capitalize on viral trends.

Investors appear to be particularly eager to back companies that tap AI to predict fashion trends.

In the U.S., another top funding recipient is Finesse, which has raised close to $45 million total from investors. The Los Angeles-based startup describes itself as the “first AI-led fashion house” and creates fast-fashion clothes based on social media votes, shopping data and viral trends spotted by its machine learning technology.

“I call it ‘Zara meets Netflix,’ ” CEO and co-founder Ramin Ahmari told Crunchbase News in 2021, when the company raised its $4.5 million seed round. “We all love fashion and the beauty industry, but fashion is a huge world largely untouched by technology. There are now new trends in efficiency and data, and Finesse is all about using data to reduce the tons of waste in fashion.”

While reviews of its clothes have been mixed, the company went on to raise a $40 million Series A led by TQ Ventures.

Another well-funded startup in the fashion demand prediction realm is Syrup Tech. The New York-based company has raised $25.1 million total for its AI-driven predictive software used by fashion brands.

AI fashion design and creation tools

Fashion designers are also increasingly using generative AI to help them design clothes and make 3D digital mockups of items before they ever go into production.

Along those lines, funded startups include Raspberry AI, which earlier this year raised $24 million in an Andreessen Horowitz-led Series A. The New York-based startup’s platform turns designers’ sketches into photorealistic renderings, showing in rich detail how products will look, fit and drape in real life.

Another AI fashion design tool is AI.Fashion. The Los Angeles-based startup makes AI-driven tools for virtual photoshoots and fashion content creation. It raised a $3.6 million seed round led by Neo in February 2024.

BLNG, meanwhile, applies generative AI to jewelry design, converting sketches or text prompts into photorealistic 3D renders. The Los Angles-based company has raised $4.5 million, including a $3 million seed round in April, per Crunchbase.

Discovery and personalization

AI is also changing how consumers discover clothing and footwear. Startups in this category use machine learning to personalize recommendations, improve product tagging and offer smarter shopping experiences for consumers to help them better find what they want.

Among the most high-profile recently funded companies in this cohort is Daydream, an AI-powered shopping platform founded by e-commerce veteran Julie Bornstein, who previously founded The Yes and sold it to Pinterest three years ago. Her new startup makes personalized fashion recommendations through a chat-based interface. The San Francisco-based company raised a $50 million seed round in June from investors including Forerunner Ventures and Index Ventures.

Other companies in this subsector include Lily AI. Its platform translates retailer product attributes into more consumer-friendly language, with the aim of improving site search and personalization. The Mountain View, California-based startup has raised $71.9 million to date.

Other funded fashion discovery startups include:

  • Tel Aviv-based Karma, which has raised $34 million in funding to date for its browser-based shopping tools;
  • London-based Hey Savi, which raised $2.85 million in pre-seed funding last year for its AI fashion search engine; and
  • Shoppin, an India-based startup that helps users discover clothing using prompts and images, raised $1 million in a pre-seed funding in January.

Virtual try-ons, precision fit and customization

Tracking down what looks like the perfect dress to wear to that summer wedding reception is one thing. Knowing it will actually fit and look good on you when it arrives is another.

Companies tackling that problem include several virtual try-on startups that aim to make it easier to gauge how a garment will fit before you buy it online — both to reduce buyer frustration and to reduce the chances of costly returns for retailers.

Along those lines, virtual try-on and social shopping app Doji last month raised $14 million in a seed round led by Thrive Capital. The San Francisco-based company’s app lets users create avatars for virtual try-ons of clothing.

Similarly, Paris-based Veesual offers diverse AI-generated virtual models to showcase how clothes look on different bodies. The startup has raised $7.6 million to date, mostly in a seed round last year led by AVP and Techstars.

A smaller subset of startups is working on actually personalizing the size and fit of shoes and clothes. Among the most notable of the bunch is New York-based IAMBIC, which uses AI to make precision-fit footwear. The company, whose completely custom sneakers were named to TIME’s Best Inventions list in 2023, has raised $1.3 million through research grants.

Another is New York-based Laws of Motion, a seed-funded DTC brand that has raised $10.2 million on the promise of precision-fit clothing for women through virtual body scans and AI technology.

Smart manufacturing and supply chain optimization

Other startups are turning to AI to improve the way garments are made. Funded companies in this group include those working on demand forecasting, advanced textiles and material optimization, process automation, and textile recycling.

For example, Smartex.ai installs AI and computer vision technology into textile factories to help them automatically detect textile defects. The Portugal-based startup has raised $27.6 million in funding, per Crunchbase.

Several startups focused on fashion-related sustainability have also raised funding in recent years. They include Matoha Instrumentation, which builds AI-enabled infrared scanners for rapid textile sorting to support recycling. The London-based startup raised £1.5 million in an April seed round.

Refiberd, meanwhile, uses AI and hyperspectral imaging to enable intelligent sorting in textile-to-textile recycling. The Cupertino, California-based company has raised $2.7 million total from venture rounds and grants.

There’s also some funding in the area of new textile technologies developed with the help of AI. One example is Solena Materials, which raised a $6.7 million seed round in May. The startup, also based in London, uses AI-driven protein sequence design to engineer new biodegradable fibers produced by microbes.

Looking ahead: AI will stay on trend

With AI overall en vogue with investors, startups weaving that technology into the fashion industry seem poised for more growth. We expect that as clothing brands continue to battle supply-chain pressures, consumer churn and shifting online behavior, AI tools will remain on trend in coming seasons.

Related Crunchbase query:

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Illustration: Dom Guzman


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