Prime Highlight:
- Google has introduced the open-source Universal Commerce Protocol to create a standard system for AI-powered shopping journeys, from discovery to checkout.
- The move strengthens Google’s push into agent-based commerce as competition heats up with OpenAI, Amazon, and other tech players.
Key Facts:
- UCP was developed with partners including Shopify, Etsy, Wayfair, and Target, and will support direct purchases via Google’s AI Mode and Gemini app using Google Wallet.
- McKinsey estimates AI-led retail could grow into a $3–5 trillion global market by 2030, highlighting the scale of the opportunity Google is targeting.
Background:
Google has introduced a new open-source system called the Universal Commerce Protocol to strengthen its role in the fast-growing world of AI-powered shopping. The company announced the move on Sunday at the National Retail Federation’s annual event, as retailers increasingly adopt AI agents to handle everything from product discovery to payments.
The protocol aims to create a single, standard way for AI tools to manage the full shopping journey, including search, checkout, and post-purchase support. Google says the system will remove the need for retailers to build and connect multiple tools on their own.
Vidhya Srinivasan, vice president of Google Ads and Commerce, said a shared structure is essential to scale AI commerce. She added that the system allows businesses to choose the features they want, giving them flexibility without losing consistency.
UCP was built with partners such as Shopify, Etsy, Wayfair, and Target. Google plans to soon power a new checkout option that lets users buy products directly through Google’s AI Mode or the Gemini app. Payments will start with Google Wallet, with PayPal and other options expected later.
The launch comes as competition intensifies in agent-based shopping. OpenAI introduced Instant Checkout last year and rolled out its Agentic Commerce Protocol with Stripe. Perplexity has teamed up with PayPal to enable in-chat purchases, while Amazon’s “Buy for Me” tool allows AI to place orders on other websites.
Alongside UCP, Google also unveiled a “Business Agent” feature that lets shoppers chat directly with brands in a conversational format. The company said this reflects changing consumer habits toward chat-based shopping.
Google is also testing “Direct Offers,” a new ad format that pushes special deals when users show buying intent in its AI chatbot. According to Srinivasan, advertising will continue to play a central role in matching shoppers with sellers.
McKinsey estimates that AI-led retail could become a $3 trillion to $5 trillion global market by 2030, making the battle for AI commerce leadership increasingly fierce.
