Abstract: A wearable electronic device is capable of changing its appearance or physical characteristics or creating output that is entertaining or useful to the user. An inference engine collects context data inputs from a variety of source to output new inferred insights to update a persistent inferred state describing the situational context of the user. A situational context predictor accepts data sensed from the wearable device and/or environmental data to predict a situational context that is likely to describe the user's current situational context. A controller transmits control commands to the wearable electronic device to cause the wearable electronic device to provide services or to change it appearance or physical characteristics based on the inferred insights.