Google Expands AI-Driven Retail Capabilities With New Shopping Agent Platform

In Brief

Google has introduced the Universal Commerce Protocol (UCP) and additional AI-driven tools, including targeted discounts, branded Business Agents, and Gemini Enterprise, to streamline e-commerce and enhance shopping experiences.

Technology company Google announced on Sunday the introduction of a new open standard called the Universal Commerce Protocol (UCP) for AI agent-driven shopping during the National Retail Federation (NRF) conference

The standard was developed in collaboration with companies including Shopify, Etsy, Wayfair, Target, and Walmart. It is designed to allow AI agents to operate across multiple stages of the customer purchasing journey, encompassing product discovery, transaction, and post-purchase support. The stated objective is to streamline these processes by enabling coordination through a single protocol rather than requiring separate connections for each agent.

According to Google, UCP provides a shared framework for communication among AI agents, systems, businesses, and payment providers, allowing agents to interact across different platforms without the need for custom integrations. The protocol is designed to function across industry verticals and is compatible with existing standards such as Agent2Agent (A2A), Agent Payments Protocol (AP2), and Model Context Protocol (MCP).

The company reported that it plans to implement UCP for eligible Google product listings in AI mode within Google Search and the Gemini applications, allowing consumers to complete purchases directly from US-based retailers while browsing products. Payments will be processed through Google Pay, with shipping information drawn from Google Wallet, and Google indicated that support for PayPal as a payment option will be added in the near future.

Expanding AI Commerce Offerings With Targeted Discounts, Business Agents, And Gemini Enterprise

Google further reported that it will allow brands to provide targeted discounts to users during product searches in AI mode. For example, when a consumer enters a query such as “I’m looking for a modern, stylish rug for a high-traffic dining room. I host a lot of dinner parties, so I want something that is easy to clean,” participating brands can configure campaigns to offer a discount at that moment.

The company also stated that it is introducing additional data attributes within the Merchant Center, enabling sellers to better feature their products across AI-driven search surfaces.

In addition, Google announced that merchants can now integrate a branded AI-powered Business Agent within Google Search to respond to customer inquiries. The company noted that retailers including Lowe’s, Michaels, Poshmark, and Reebok are already utilizing this functionality, while competitors such as Shopify and Meta have been exploring similar AI-driven tools for customer support and engagement.

Google further introduced Gemini Enterprise for Customer Experience (CX), a suite of tools designed to assist retailers and restaurants in managing shopping and customer service interactions.

Google Advances In AI-Powered E-Commerce To Compete With OpenAI, Perplexity, And Amazon

E-commerce has become a key area of competition within the quickly expanding generative AI market, with Google competing against companies such as OpenAI, Perplexity, and Amazon as each seeks to encourage consumers to begin their shopping experiences using their respective applications and services. In September, OpenAI announced Instant Checkout, a feature that enables users to purchase certain products directly through ChatGPT, with OpenAI collecting a fee from transactions it facilitates. OpenAI’s Agentic Commerce Protocol, developed in partnership with Stripe, is open source and could serve as a competitor to Google’s Universal Commerce Protocol (UCP).

In May, Perplexity announced a partnership with PayPal to allow users to purchase products, book travel, and obtain concert tickets directly within its chat platform without leaving the service. The company also stated in November that it would launch a free agentic shopping tool for U.S. users in time for the holiday season.

Amazon, earlier in the previous year, introduced Shop Direct, a feature enabling consumers to browse products from other brands’ websites while remaining on Amazon. Certain items include a “Buy for Me” button, an AI-powered agent capable of completing purchases on external sites on behalf of the shopper.

A report from McKinsey in October projected that by 2030, the global retail market could represent a $3 trillion to $5 trillion opportunity driven by AI-powered tools and agentic commerce.