NEW YORK, Jan 12, 2026, 07:49 EST
- Shares of Alphabet climbed roughly 1% before the U.S. market opened, following Google’s launch of new AI-driven shopping tools for retailers
- Google rolled out an open “Universal Commerce Protocol” alongside fresh Search capabilities, including branded chat and AI Mode-powered targeted discounts
- Walmart, Shopify, and others are jumping on board as OpenAI and Amazon advance comparable AI-driven shopping and checkout initiatives
Shares of Alphabet climbed roughly 1% in early Monday trading.
On Sunday, Google unveiled new AI shopping tools designed to pull retailers further into its Search AI Mode and Gemini app, offering a more seamless journey from product discovery to checkout.
The shift comes as retailers and payment companies dive into “agentic commerce” — industry jargon for AI that doesn’t just respond but actually takes steps, like assembling a basket and initiating payment.
After the National Retail Federation convention kicked off in New York, Google CEO Sundar Pichai unveiled the Universal Commerce Protocol, or UCP. He described it as “open” and “agnostic,” developed alongside Shopify, Etsy, Wayfair, Target, and Walmart. Pichai said UCP will “soon” add a buy button to Google’s AI Mode in Search and Gemini, with checkout handled through Google Pay, while the retailer remains the “merchant of record”—keeping control over the transaction and customer relationship. 1
A separate company blog post called UCP the plumbing behind a new checkout feature for eligible product listings in AI Mode and the Gemini app, initially rolling out to select U.S. retailers. It also introduced “Business Agent,” a chat tool branded for shoppers to ask retailers questions directly within Search. On top of that, there’s a “Direct Offers” pilot that inserts retailer discounts into AI Mode when Google determines the deal is relevant. The pilot kicks off with discounts but could later include bundles and free shipping. 2
Google Cloud announced Gemini Enterprise for Customer Experience in a press release tied to the event. The offering includes prebuilt, configurable agents that can be up and running “in days” to link shopping with customer support. Darshan Kantak, a Google Cloud VP, called it “bridging the gap between sales and service.” Meanwhile, Lowe’s chief digital and information officer Seemantini Godbole said the retailer is “using AI to simplify and personalize” the home improvement shopping experience. 3
Walmart announced it will integrate its product lineup into Gemini conversations via UCP, enabling account linking for tailored recommendations and letting shoppers add items directly to their Walmart or Sam’s Club carts. John Furner, head of Walmart U.S., dubbed agent-led shopping “the next great evolution in retail,” while Pichai emphasized that “AI can improve every step” of the consumer experience. 4
Google’s latest move edges it closer to competitors aiming to turn chatbots into full-fledged storefronts. OpenAI and Amazon are both pushing to keep shoppers inside their AI apps all the way through checkout. Walmart disclosed a similar deal with OpenAI back in October. At the NRF event, PayPal’s Mike Edmonds admitted he held “no false belief” that agentic commerce would take off overnight. Shopify CEO Tobi Lutke noted consumers want “a personal shopper who really gets them,” but also that they “don’t over automate.” 5
Shopify revealed a new shopping integration with Microsoft’s Copilot, TechCrunch reported, marking another major player entering the battle over checkout dominance. 6
Retailers are moving fast on multi-platform rollouts. British sportswear giant JD Sports announced Monday it will launch Microsoft’s Copilot in its crucial U.S. market first, before adding Google’s Gemini and OpenAI’s ChatGPT later. 7
Yet, large parts of Google’s plan remain tagged as “soon” or “pilot.” The buy button will initially be available only for eligible listings and select U.S. retailers. The ad-driven discount setup depends on Google’s AI to determine when an offer should appear in responses—a decision that can misfire or be overlooked by shoppers.
Google announced plans to expand its checkout and Business Agent features in the coming months. The company will train branded agents using retailers’ own data and introduce additional purchase options along with enhanced post-purchase capabilities.
