Google Introduces Universal Commerce Protocol to Enhance AI-Powered Shopping
Google has unveiled a new open standard called the Universal Commerce Protocol (UCP) for AI-driven shopping, announced at the National Retail Federation (NRF) conference. Developed in collaboration with leading companies such as Shopify, Etsy, Wayfair, Target, and Walmart, the protocol enables AI agents to streamline various stages of the customer buying process, from product discovery to post-purchase support. The key benefit of UCP is that it consolidates these processes under one framework, eliminating the need for multiple agent connections.
In addition, UCP is compatible with other agent-based protocols like the Agent Payments Protocol (AP2), which Google introduced last year, as well as Agent2Agent (A2A) and Model Context Protocol (MCP). Google highlighted that businesses and agents can selectively adopt protocol extensions that best meet their needs.
Google plans to integrate UCP into eligible Google product listings, allowing shoppers to purchase directly from U.S.-based retailers while browsing via AI mode in search and Gemini apps. This integration will enable payments via Google Pay and the use of shipping details from Google Wallet, with PayPal support coming soon.
Shopify’s CEO, Tobi Lutke, expressed enthusiasm for the protocol, noting its ability to match consumers with products they might not have actively searched for. “This kind of serendipity is where the best of commerce happens,” he said. Shopify also introduced a similar shopping integration with Microsoft Copilot to facilitate easy checkout within conversational AI flows.
Additionally, Google is rolling out a feature allowing brands to offer discounts to users based on product recommendations. For example, if a user searches for a rug, brands can present discounts at the moment the user is exploring their options.
To further support merchants, Google has added new data attributes to its Merchant Center, enabling sellers to better showcase their products in AI search results. Companies like PayPal and OpenAI are also working on making products more visible in AI-powered chatbot responses.
Furthermore, merchants can now integrate AI-powered Business Agents within Google Search to answer customer inquiries, with brands like Lowe’s, Michael’s, Poshmark, and Reebok already adopting the feature. This marks a shift in how businesses use AI for customer support and engagement, following similar efforts by competitors such as Meta and Shopify.
Google also introduced Gemini Enterprise for Customer Experience (CX), a suite designed to support shopping and customer service for retailers and restaurants. As AI continues to shape shopping experiences, companies like Google, Amazon, Walmart, and OpenAI are setting new standards for AI’s role in commerce. Adobe recently reported a 693.4% surge in traffic driven to seller websites by generative AI over the holiday season, though sales conversions remain unspecified.
