Hajra Naz
Google has introduced a new open standard called the Universal Commerce Protocol, or UCP. The goal is to make online shopping easier for AI agents. The announcement came at the National Retail Federation conference, where retail and tech leaders discuss the future of commerce.
UCP is built to support the entire buying journey. It helps AI agents with product discovery, checkout, and post-purchase support. All of this happens without the need for separate integrations at each step.
Built With Retail’s Biggest Names
Google developed the protocol with major commerce players like Shopify, Etsy, Wayfair, Target, and Walmart. The aim is to create a shared framework for AI-powered shopping. One that works smoothly across retailers, platforms, and services.
Instead of forcing companies to connect to multiple agent systems, UCP offers a unified approach. Businesses and developers can choose only the protocol extensions they need. This adds flexibility without locking anyone into a single ecosystem.
How UCP Fits Into Google’s Broader AI Strategy
Google emphasized that UCP complements, rather than replaces, its existing agent-focused standards. These include the Agent Payments Protocol (AP2), announced last year, as well as Agent2Agent (A2A) and Model Context Protocol (MCP).
Together, these systems are meant to support how AI agents communicate, understand context, and complete transactions securely—whether they’re acting on behalf of users or businesses.
Shopping Directly Inside Search and Gemini
Google plans to roll out UCP across eligible product listings in AI Mode within Google Search and the Gemini apps. U.S. shoppers will be able to research products and check out directly from participating retailers without leaving Google’s interface.
Payments will be handled through Google Pay, with shipping details pulled from Google Wallet. Google also confirmed that PayPal support is coming soon, expanding payment options for users.
Why AI-Driven Discovery Matters
Shopify CEO and founder Tobi Lütke highlighted the strength of AI agents in connecting shoppers with products they didn’t even know they wanted.
“It’s really good at finding people who have specific interests and matching them with the perfect product,” Lütke said. “That kind of serendipity is where the best of commerce happens.”
Interestingly, Shopify also announced a similar shopping integration with Microsoft Copilot on the same day, signaling how quickly conversational commerce is becoming mainstream.
Discounts That Appear at the Right Moment
Google is also introducing a new way for brands to offer real-time discounts inside AI-powered search experiences.
For example, if a user asks for recommendations — like finding a durable, easy-to-clean rug for a busy dining room — brands can trigger special offers at that exact moment. The idea is to influence decisions while users are actively researching, rather than after they’ve moved on.
Better Product Visibility for Merchants
Merchants will gain access to new data attributes in Google Merchant Center, allowing them to better showcase products across AI-driven search surfaces.
This push mirrors efforts by companies like PayPal and OpenAI, which are also working to help sellers surface more naturally within AI chatbot responses. Several startups are now focused entirely on helping merchants appear inside AI-generated answers.
Branded AI Agents Inside Google Search
Google is also expanding tools for merchants by allowing them to deploy branded AI-powered business agents directly within Search. These agents can answer customer questions, provide product details, and guide shoppers through decisions.
Retailers such as Lowe’s, Michael’s, Poshmark, and Reebok are already using the feature. Competitors like Meta and Shopify are developing similar AI tools for customer support and engagement.
Gemini Enterprise for Customer Experience
In addition, Google announced Gemini Enterprise for Customer Experience (CX), a new suite designed to help retailers and restaurants manage shopping workflows and customer service using AI.
The offering reflects Google’s broader push to embed Gemini across enterprise-level commerce operations.
The Bigger Shift Toward AI-Driven Commerce
Google isn’t alone in this race. Companies including Amazon, Walmart, OpenAI, and Adobe are rapidly introducing standards and tools to weave AI into every layer of online shopping.
Earlier this month, Adobe reported that traffic driven to seller websites by generative AI surged 693.4% during the holiday season. While the company didn’t specify how much of that traffic converted into sales, the signal is clear: AI is becoming a major gateway to commerce.
