Google Launches Universal Commerce Protocol for AI-Powered Shopping

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Google Launches Universal Commerce Protocol for AI-Powered Shopping

Google has announced a new open standard called the Universal Commerce Protocol to make AI-powered shopping smoother and more integrated. The company revealed the protocol at the National Retail Federation conference, positioning it as a way to help AI agents handle different parts of the buying process without needing separate connections for each step.

The protocol was developed in partnership with major retailers including Shopify, Etsy, Wayfair, Target, and Walmart. It's designed to let AI agents work across various stages of shopping, from product discovery all the way through to post-purchase customer support. The key advantage is that businesses and AI agents can pick and choose which parts of the protocol they want to use based on their specific needs.

Google says the Universal Commerce Protocol works alongside other protocols it has developed, including the Agent Payments Protocol that the company announced last year, as well as Agent2Agent and Model Context Protocol. This creates a framework where different AI systems can communicate and complete transactions more seamlessly.

The most immediate practical application will be in Google's AI mode in search and the Gemini apps. Soon, shoppers researching products will be able to check out directly from U.S.-based retailers without leaving the AI interface. They'll be able to pay using Google Pay and use shipping information already saved in Google Wallet. Google also plans to add PayPal as a payment option in the near future.

Shopify's CEO Tobi Lutke highlighted how AI agents excel at connecting people with products they might not have actively searched for. He described this as creating moments of serendipity where the best commerce happens, finding perfect matches between shoppers and products they didn't even know they wanted.

In another development, Google is now allowing brands to offer special discounts to users while they're actively searching for product recommendations in AI mode. For example, if someone searches for a modern rug that's easy to clean for dinner parties, brands can set up campaigns to offer a discount right at that moment when the person is considering their options.

Google is also giving merchants new tools within its Merchant Center to help their products appear more prominently in AI search results. This move reflects a broader trend in the industry, with companies like PayPal and OpenAI also working to help sellers become more discoverable in AI chatbot responses. Some startups are even specializing in helping merchants optimize their products to show up in AI-generated answers.

The company is rolling out AI-powered Business Agents that merchants can integrate into their websites to answer customer questions automatically. Companies like Lowe's, Michael's, Poshmark, and Reebok are already using this feature. Google also announced Gemini Enterprise for Customer Experience, a complete suite for handling shopping and customer service operations for retailers and restaurants.