New tech and tools for retailers to succeed in an agentic shopping era

Google is accelerating agentic commerce with three major announcements targeting retail growth in the AI era. First, the Universal Commerce Protocol (UCP) creates an open standard for agents to work across the shopping journey, from discovery to post-purchase. Endorsed by Shopify, Etsy, Wayfair, Target, Walmart, and over 20 others including Visa and Mastercard, UCP eliminates the need for unique integrations per agent.

Starting soon, it will power checkout on Google product listings in AI Mode and Gemini, using Google Pay and PayPal, with retailers remaining the seller of record. This aims to capture sales and reduce abandoned carts. Second, Business Agent lets brands create branded AI agents on Search, acting as virtual sales associates.

Starting with Lowe's, Michael's, and others, retailers can customize the agent to answer questions in brand voice, with future capabilities for direct purchasing and personalized offers. Third, Direct Offers is a Google Ads pilot in AI Mode, allowing retailers to serve exclusive discounts (e.g., 20% off) when shoppers are ready to buy. Retailers set up offers, and AI determines relevance.

Initially focused on discounts, it will expand to bundles and free shipping. Partners include Petco, e.l.f. Cosmetics, and Samsonite.

Additionally, Google introduces new data attributes in Merchant Center for conversational commerce, such as common questions and compatible accessories. For ad ops decision-makers, key takeaways: (1) Optimize product feeds with new attributes to enable AI-powered discovery; (2) Test Direct Offers to capture intent-driven shoppers with value propositions; (3) Activate Business Agent to engage customers at critical moments; (4) Prepare for UCP integration to streamline agentic checkout. These tools shift retail from keyword-based to conversational, requiring adaptive strategies.