Google has unveiled a major move to reshape how online shopping works in the age of artificial intelligence. At a retail industry gathering on Sunday, the company introduced a new open standard designed to let AI agents handle buying tasks smoothly from start to finish. The announcement signals a deeper push by Google to make AI-driven commerce faster, more personal, and easier for both shoppers and merchants.
The new framework, called the Universal Commerce Protocol, is built to support AI agents that guide consumers through discovery, purchase, and post-purchase support without friction. Instead of forcing retailers and developers to connect to many separate systems, the protocol aims to act as a single layer that works across the entire shopping journey. Google says this approach reduces complexity while opening the door to richer, more intelligent buying experiences.
The Universal Commerce Protocol was developed in collaboration with major retail and e-commerce players, including Shopify, Etsy, Wayfair, Target, and Walmart. By working with established platforms, Google is positioning the protocol as a shared industry foundation rather than a closed ecosystem. This strategy could speed up adoption and reduce resistance from merchants worried about platform lock-in.
At its core, the protocol allows AI agents to move fluidly across different stages of commerce. An agent can help a user find a product, answer questions, manage checkout, and even assist after the sale. Previously, these steps often required separate integrations or handoffs. Google argues that a unified standard makes agent-based shopping more reliable and scalable.
Google also confirmed that the Universal Commerce Protocol is designed to work alongside other agent-focused systems. These include the Agent Payments Protocol, announced last year, as well as Agent2Agent and the Model Context Protocol. Businesses and developers can choose which extensions they need, giving them flexibility rather than forcing a one-size-fits-all approach. This modular design may appeal to retailers with different technical needs and risk tolerances.
The company plans to roll out real-world use of the protocol quickly. Google said it will begin using the Universal Commerce Protocol for eligible product listings that appear in AI-powered shopping experiences across Search and the Gemini apps. Shoppers in the United States will be able to complete purchases directly while researching products, instead of being sent to external checkout pages.
Payments will be handled through Google Pay, with shipping details pulled from information stored in Google Wallet. Google also confirmed that support for PayPal is coming soon. This setup reduces friction at checkout, which has long been a major cause of abandoned carts in e-commerce.
Google executives say AI agents are especially strong at matching people with products they did not know they were looking for. According to the company, these systems can detect subtle preferences from natural language queries and browsing behavior. The result is more serendipitous discovery, where shoppers feel understood rather than targeted.
This idea resonated with Shopify leadership, which sees agent-driven discovery as a powerful new sales channel. Shopify has also revealed a similar conversational checkout integration with Microsoft Copilot, allowing users to complete purchases inside chat-based experiences. The parallel announcements suggest growing competition to own the interface where shopping decisions happen.
Beyond checkout, Google is expanding how brands can influence shoppers during AI-powered searches. The company will now allow merchants to offer special discounts at the exact moment a user asks for product recommendations in AI mode. For example, a shopper describing a need for a durable dining room rug could receive a targeted discount while still exploring options.
This timing is critical. By presenting offers when intent is high, brands can increase conversion without relying on generic promotions. Google says merchants can configure these campaigns through its existing advertising and merchant tools, giving them more control over when and how discounts appear.
Google is also enhancing the Merchant Center with new data attributes tailored for AI-driven discovery. These attributes help sellers describe products in richer ways so that AI agents can surface them more accurately in conversational results. The goal is to move beyond basic keywords and toward deeper product understanding.
The broader industry is moving in the same direction. Companies such as OpenAI are also exploring ways to help merchants become more visible inside AI chat interfaces. Payment providers and discovery startups are racing to ensure their platforms remain relevant as users shift from traditional search to conversational recommendations.
Another notable update involves direct customer support. Google is now allowing merchants to embed branded, AI-powered Business Agents directly within Google Search. These agents can answer questions, guide shoppers, and provide product details without sending users elsewhere. Retailers including Lowe’s, Michaels, Poshmark, and Reebok are already using the feature.
This move brings customer service closer to the point of discovery. Instead of browsing FAQs or waiting for live chat, shoppers can get instant answers while searching. For merchants, this could reduce support costs while improving satisfaction.
Google also introduced Gemini Enterprise for Customer Experience, a new suite designed for retailers and restaurants. The offering combines shopping assistance, order management, and customer service tools powered by Gemini models. Google says the suite is built to handle high-volume interactions without losing personalization.
The announcement highlights how aggressively major tech companies are pushing AI into commerce. Amazon, Walmart, Google, and others are all investing heavily in AI systems that touch every part of the buying process. These efforts aim to control not just where people shop, but how they decide.
Recent industry data underscores why this race matters. During the recent holiday season, traffic driven to merchant sites by generative AI tools surged dramatically, according to Adobe. While the data did not confirm how many visits turned into purchases, the growth suggests that AI-driven discovery is already reshaping online behavior.
For Google, the Universal Commerce Protocol is both a defensive and offensive move. It protects the company’s role as a central gateway to shopping while opening new revenue streams through AI-assisted transactions. By making the protocol open, Google also reduces the risk of backlash from regulators and partners.
The success of this approach will depend on adoption and trust. Shoppers must feel comfortable letting AI agents handle payments and personal data. Merchants must see clear gains in conversion and visibility. If those conditions are met, agent-based commerce could become a standard expectation rather than a novelty.
As AI continues to blur the line between search, chat, and checkout, Google’s latest announcement shows how quickly commerce is evolving. The Universal Commerce Protocol may not be the final answer, but it marks a significant step toward a future where shopping feels more conversational, intuitive, and immediate.
