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

Technology firm Google introduced on Sunday the introduction of a brand new open normal referred to as the Universal Commerce Protocol (UCP) for AI agent-driven buying throughout the National Retail Federation (NRF) convention.
The normal was developed in collaboration with corporations together with Shopify, Etsy, Wayfair, Target, and Walmart. It is designed to permit AI brokers to function throughout a number of levels of the shopper buying journey, encompassing product discovery, transaction, and post-purchase assist. The acknowledged goal is to streamline these processes by enabling coordination by means of a single protocol relatively than requiring separate connections for every agent.
According to Google, UCP supplies a shared framework for communication amongst AI brokers, methods, companies, and cost suppliers, permitting brokers to work together throughout totally different platforms with out the necessity for customized integrations. The protocol is designed to perform throughout trade verticals and is appropriate with current requirements akin to Agent2Agent (A2A), Agent Payments Protocol (AP2), and Model Context Protocol (MCP).
The firm reported that it plans to implement UCP for eligible Google product listings in AI mode inside Google Search and the Gemini purposes, permitting customers to finish purchases instantly from US-based retailers whereas shopping merchandise. Payments will probably be processed by means of Google Pay, with transport info drawn from Google Wallet, and Google indicated that assist for PayPal as a cost choice will probably be added within the close to future.
Expanding AI Commerce Offerings With Targeted Discounts, Business Agents, And Gemini Enterprise
Google additional reported that it’ll enable manufacturers to offer focused reductions to customers throughout product searches in AI mode. For instance, when a shopper enters a question akin to “I’m in search of a contemporary, fashionable rug for a high-traffic eating room. I host a whole lot of dinner events, so I need one thing that’s simple to wash,” collaborating manufacturers can configure campaigns to supply a reduction at that second.
The firm additionally acknowledged that it’s introducing further information attributes throughout the Merchant Center, enabling sellers to raised function their merchandise throughout AI-driven search surfaces.
In addition, Google introduced that retailers can now combine a branded AI-powered Business Agent inside Google Search to reply to buyer inquiries. The firm famous that retailers together with Lowe’s, Michaels, Poshmark, and Reebok are already using this performance, whereas rivals akin to Shopify and Meta have been exploring related AI-driven instruments for buyer assist and engagement.
Google additional launched Gemini Enterprise for Customer Experience (CX), a collection of instruments designed to help retailers and eating places in managing buying and customer support interactions.
Google Advances In AI-Powered E-Commerce To Compete With OpenAI, Perplexity, And Amazon
E-commerce has develop into a key space of competitors throughout the shortly increasing generative AI market, with Google competing in opposition to corporations akin to OpenAI, Perplexity, and Amazon as every seeks to encourage customers to start their buying experiences utilizing their respective purposes and companies. In September, OpenAI introduced Instant Checkout, a function that permits customers to buy sure merchandise instantly by means of ChatGPT, with OpenAI amassing a payment from transactions it facilitates. OpenAI’s Agentic Commerce Protocol, developed in partnership with Stripe, is open supply and will function a competitor to Google’s Universal Commerce Protocol (UCP).
In May, Perplexity introduced a partnership with PayPal to permit customers to buy merchandise, guide journey, and acquire live performance tickets instantly inside its chat platform with out leaving the service. The firm additionally acknowledged in November that it will launch a free agentic buying software for U.S. customers in time for the vacation season.
Amazon, earlier within the earlier yr, launched Shop Direct, a function enabling customers to browse merchandise from different manufacturers’ web sites whereas remaining on Amazon. Certain gadgets embody a “Buy for Me” button, an AI-powered agent able to finishing purchases on exterior websites on behalf of the patron.
A report from McKinsey in October projected that by 2030, the worldwide retail market might characterize a $3 trillion to $5 trillion alternative pushed by AI-powered instruments and agentic commerce.
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