Google Announces New Agreement to Drive Business Activities with AI Agents

Google has unveiled a new open standard called the Universal Commerce Protocol (UCP) at today's National Retail Federation (NRF) conference, designed to enable AI agent-based shopping experiences.

Co-developed with major retailers including Shopify, Etsy, Wayfair, Target, and Walmart, UCP allows AI agents to participate across various stages of the customer journey—from product discovery to post-purchase support. The core idea is to streamline these interactions by eliminating the need for separate integrations with individual agents, enabling seamless commerce workflows.

Google emphasized its collaboration with other agent-focused protocols such as Agent-to-Payments (A2P), which it introduced last year, along with Agent-to-Agent (A2A) and Model Context Protocol (MCP). Businesses and developers can choose specific extensions based on their use cases and technical requirements.

The company plans to roll out UCP within AI Mode in Search and the Gemini app soon, allowing U.S. shoppers to check out directly from retailers while researching products. Users will be able to pay via Google Pay and automatically share shipping details stored in Google Wallet. PayPal will also be added as a supported payment option in the near future.

"This is where agent technology becomes truly exciting," said Tobi Lutke, CEO and founder of Shopify. "It excels at identifying people with specific interests and matching them with precisely the right products. I never even searched for this item, yet somehow it found me. That serendipity is one of the best parts of commerce."

Notably, Shopify also announced a similar integration today with Microsoft Copilot, enabling customers to complete purchases directly within conversational interfaces.

In another consumer-facing enhancement, Google will now allow brands to offer exclusive discounts when users seek product recommendations using AI Mode. For example, if someone searches with a prompt like, “I’m looking for a modern, stylish rug suitable for a high-traffic dining room. I host dinners often, so I want something easy to clean,” brands can configure campaigns to deliver instant promotions at that moment.

To improve product visibility in AI-driven search environments, Google is introducing new data attributes within Merchant Center, helping sellers better represent their inventory. Companies like PayPal and OpenAI are similarly working to increase merchant discoverability within AI chatbot results. Emerging startups such as Prompt are also partnering with retailers to ensure their products appear in AI-generated responses.

Google now enables businesses to embed an AI-powered business agent directly on their websites to handle customer inquiries. Retailers including Lowe’s, Michael’s, Poshmark, and Reebok are already leveraging this solution. Competitors like Meta and Shopify are actively exploring AI tools for customer service and marketing automation.

Firms including Google, Amazon, Walmart, and OpenAI continue rolling out new standards and services aimed at embedding AI into every phase of the shopping experience—on both the consumer and merchant sides. Earlier this month, Adobe reported a 693.4% surge in traffic driven by generative AI during the holiday season, although it did not disclose how much of that translated into actual sales.