Inside the Controversy Surrounding Phoebe Gates’ AI Shopping App

By Alexus Mosley

Photo Credit: InStyle

Shopping smarter has become one of fashion’s biggest priorities, but one AI-powered shopping app is now facing questions about how it tracks purchases. According to Bloomberg, Phia, the celebrity-backed shopping platform co-founded by Phoebe Gates, recently came under scrutiny after reports that its browser extension was incorrectly claiming affiliate commissions on some online purchases it didn’t directly influence.

Launched in 2025, Phia helps shoppers compare prices across thousands of retailers in an effort to find the best deal. The company has attracted an impressive list of investors, including Karlie Kloss, Kim Kardashian, Sydney Sweeney, and Hailey Bieber.

The issue reportedly occurred when the browser extension inserted its affiliate code during checkout, allowing it to receive commission on certain purchases. After Bloomberg brought the matter to the company’s attention, Phia said it quickly identified the problem and released a fix. In a statement to Bloomberg, a company spokesperson said the issue stemmed from a recent software release and has since been resolved. “Within the last 24 hours, we were made aware that in a recent release our codebase was causing misattributions from a subset of users. Our team worked overnight to identify, mitigate, and has since resolved the issue”, said a Phia spokesperson.

As AI continues to reshape how people discover and shop for fashion online, the incident serves as a reminder that transparency remains just as important as convenience.

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