The rapid innovation in retail is highlighted by the emergence of agentic commerce, where AI performs tasks on behalf of consumers. Last year, tools for shoppers were introduced, along with the Agent Payments Protocol (AP2) for secure agent-led payments. The vision for agentic commerce is collaborative and inclusive, supported by partnerships with major retailers.
Launch of the Universal Commerce Protocol (UCP)
A significant development is the launch of the Universal Commerce Protocol (UCP), an open standard designed to facilitate agentic commerce throughout the shopping journey. UCP allows seamless interaction among agents, systems, and payment providers, eliminating the need for unique connections for each agent. It is compatible with existing protocols like Agent2Agent (A2A) and Model Context Protocol (MCP). Co-developed with industry leaders such as Shopify, Etsy, and Walmart, UCP has garnered support from over 20 companies, including American Express and Visa.
New Checkout Feature on Google
UCP will enable a new checkout feature on Google product listings in AI Mode, allowing shoppers to purchase from eligible U.S. retailers directly while researching. This feature emphasizes security, utilizing Google Pay and soon PayPal, while retailers maintain seller status and can customize their integration. Future enhancements will include related product discovery and loyalty rewards.
Introduction of Business Agent
The Business Agent feature allows shoppers to interact with brands directly on Search, functioning as a virtual sales associate. This feature will be available to retailers like Lowe’s and Reebok, enabling them to connect with consumers and drive sales. Retailers can customize this agent and gain insights into customer interactions.
Enhancements for Conversational Commerce
To adapt to changing shopping behaviors, new data attributes will be introduced in Merchant Center to enhance discoverability in conversational commerce. These attributes will go beyond traditional keywords to include answers to common questions and related products.
Direct Offers Pilot
To provide value to shoppers, Direct Offers will be tested in AI Mode, allowing retailers to present exclusive discounts directly in search results. This feature aims to enhance the shopping experience by offering relevant deals, helping retailers close sales more effectively. The pilot will initially focus on discounts, with plans to expand to other offer types.
The future of shopping is set to be driven by AI, with a commitment to collaboration and innovation in the retail space.
