This is the Hövding ("chieftain" in Swedish). It looks silly, yes, but before you write it off as some silly concept, realize that this thing is a working prototype. There's even a video to prove it.
At the top of the article is an example of the Hövding once its deployed, covering your melon after popping up like a car's airbag. Just below is how you'll look the rest of the time, with the inflatable helmet stored away in a special collar. The stylin' duds and air aren't crucial to the Hövding's operation, though they certainly won't hurt:
And that's kind of the point of the Hövding. It's not obtrusive as wearing your average bike helmet. As necessary as a helmet is, we all know we hate them, yet something like this could convert those of us who stupidly shun protection. The shell itself is actually a detachable, waterproof and washable covering that you could get in different colors to match different outfits, if that's important to you.
The Hövding design comes from Swedes Anna Haupt and Terese Alstin, and could go on sale as early as next Spring. Check it out in action in the video below.