Google Unveils AI Checkout & Business Agent Protocol
▼ Summary
– Google announced new AI shopping tools, including in-search checkout and branded chat agents, allowing purchases directly within its AI features.
– The Universal Commerce Protocol (UCP), developed with major retailers and payment companies, powers this new checkout system on Google surfaces.
– A feature called Business Agent lets shoppers converse with brand-specific AI assistants in Search results, launching with partners like Lowe’s and Reebok.
– Google is piloting Direct Offers, a new ad format for AI Mode that lets retailers display exclusive discounts to searchers.
– These changes shift the e-commerce traffic model, as sales can occur without users visiting a retailer’s website, impacting retailer visibility and access to buyers.
Google is introducing new features that allow consumers to make purchases directly within its AI-powered search results and engage in conversations with brand-specific AI assistants. This move aims to keep shopping activity within Google’s ecosystem, offering a more streamlined experience for users while presenting a new dynamic for online retailers. The initiatives include a new checkout protocol, interactive brand agents, and a pilot program for exclusive advertisements.
The Universal Commerce Protocol (UCP) is the foundation for this new “agentic commerce” system. Developed in collaboration with major players like Shopify, Etsy, and Walmart, this open standard facilitates the checkout process for eligible product listings. When a user decides to buy, the transaction is completed on Google’s platform using Google Pay, though the retailer remains the official seller. This system launches initially with U.S. merchants, with plans for international growth. Support for PayPal is expected to be added in the future.
Alongside the new checkout, Google is launching Business Agent, a tool that functions as a virtual sales associate. Starting January 12, shoppers will be able to interact with these AI agents directly in search results for participating brands like Lowe’s and Reebok. The agent can answer product questions using the brand’s own tone and voice. Google intends to enhance these agents further, enabling them to be trained on specific retailer data, present special offers, and eventually process purchases within the chat window itself.
A third component, called Direct Offers, is entering a pilot phase. This advertising feature allows retailers to present exclusive discounts to users who are searching for products in AI Mode. For example, someone looking for a rug might see a special 20% off promotion from a relevant retailer. Early participants in this test include brands like Petco and Samsonite.
These developments significantly alter the traditional e-commerce journey. Consumers can now research, compare, and complete a purchase without ever needing to visit the retailer’s own website. For merchants, this means a sale can occur without generating a site visit. Retailers who adopt the UCP gain access to buyers at the critical moment of purchase intent. Conversely, brands that choose not to participate might find their products less visible to users who prefer to checkout without leaving Google’s interface.
Looking forward, the checkout feature will soon be available to eligible U.S. retailers. The Business Agent officially launches on January 12, and the Direct Offers pilot is underway with a select group of advertisers. Google also announced plans to introduce new data attributes in the Merchant Center, specifically designed to improve product discovery within its AI environments, with a gradual rollout to retailers planned.
(Source: Search Engine Journal)
