Data surveillance has become more covert and pervasive with AI algorithms, which can result in biased social classifications. Appearance offers intuitive identity signals, but what does it mean to let AI observe and speculate on them? We introduce AI-rays, an interactive installation where AI generates speculative identities from participants' appearance which are expressed through synthesized personal items placed in participants' bags. It uses speculative X-ray visions to contrast reality with AI-generated assumptions, metaphorically highlighting AI's scrutiny and biases. AI-rays promotes discussions on modern surveillance and the future of human-machine reality through a playful, immersive experience exploring AI biases.