NEW YORK, Jan 12, 2026, 10:02 EST
- Walmart announced that shoppers can now find products, create carts, and make purchases directly through Google’s Gemini assistant
- Google launched an open “Universal Commerce Protocol” designed to connect AI agents directly with retailers’ checkout systems
- Walmart shares climbed roughly 2% in early trading, while Alphabet dipped around 0.4%
Walmart shares gained roughly 2% Monday as Alphabet slipped, following news the retailer’s shopping experience will be integrated into Google’s Gemini assistant. Shoppers can now build carts and complete checkout without leaving the chat interface. “We aren’t just watching the shift, we are driving it,” said John Furner, Walmart U.S. chief and incoming CEO. (Walmart)
Google’s latest move is crucial as it aims to lock in high-intent shopping—and the ads tied to it—within its AI platforms, responding to consumers shifting from keyword searches to conversational tools. The company introduced the Universal Commerce Protocol, an open standard designed to let all agents seamlessly engage throughout the shopping process. (Blog)
Google is also stepping into the heated race over “agentic commerce”—a term for AI agents that do more than just answer questions, actually taking actions that lead to purchases. Its new protocol will go head-to-head with an open-source project from OpenAI, as tech giants battle to control the checkout process instead of merely directing shoppers to retailer sites, The Verge reported. (Theverge)
Google’s developer docs describe UCP as open-source and built to integrate with current retail systems, including its Agent Payments Protocol and the Model Context Protocol, which lets AI systems access external data. The company says UCP’s payment process ensures “every authorization is backed by cryptographic proof of user consent.” Its list of partners and supporters spans retail and payments giants like Walmart, Shopify, Visa, Mastercard, and Stripe. (Googleblog)
Shopify, a co-creator of UCP alongside Google, announced that its merchants will soon sell directly through Google’s AI Mode in Search and the Gemini app as the rollout continues. “The shift to agentic commerce will require a shared language,” said Ashish Gupta, Google’s vice president and general manager of merchant shopping, in Shopify’s announcement. (Shopify)
Walmart revealed that Gemini will automatically pull in Walmart and Sam’s Club items when they fit, letting customers who link accounts receive recommendations based on previous buys. Shoppers can also merge chatbot orders with their current online carts. The retailer added that some local items could be delivered in under three hours, with certain orders arriving “as fast as 30 minutes.”
Google is rolling out new tools for merchants and advertisers to keep up as shopping moves into AI chat. Its “Business Agent” feature will allow shoppers to interact with retailers on Search using the brand’s voice. The company is also testing “Direct Offers,” a pilot program that displays discounts within AI Mode when Google’s system determines a shopper is near a purchase.
The updates dropped during the National Retail Federation’s annual convention in New York, where retailers are pushing AI as a fresh gateway into shopping. “I’m under no false belief that… all of a sudden, agentic commerce is going to get everywhere,” Mike Edmonds, PayPal’s VP of agentic commerce and commercial growth, said. (Apnews)
Google’s move comes on the heels of OpenAI unveiling “Instant Checkout” within ChatGPT, working with partners like Etsy and Shopify, Reuters reported. The development intensifies the battle over who controls product discovery, payments, and post-sale service through AI assistants. (Reuters)
Still, the bet isn’t without complications. If checkout shifts into an AI-driven layer, retailers could lose direct touch with customers, while shoppers might be wary of entrusting more decisions—and payment steps—to systems that can still slip up. Shopify CEO Tobi Lutke, speaking at the same conference, cautioned against “over automate,” insisting the shopper must remain in control.
Walmart (WMT) climbed roughly 2.1% in morning trading. Alphabet (GOOGL) dipped around 0.4%, and Shopify (SHOP) slipped about 1.9%, market data show. PayPal (PYPL), which Google plans to introduce as a payment method, dropped nearly 1.4%.
Google announced the new experience will launch first in the United States before rolling out globally. The company also plans to add features like loyalty rewards and more personalized shopping options.
