Google Responds to ChatGPT’s Commerce Push With AI Mode for Shopping

Google launched AI Mode for Shopping that relies on real-time search behaviour rather than prompt-based interactions. It’s a calculated move in response to ChatGPT’s entry into commerce, and here’s why retailers should take it seriously.

In a direct counter to ChatGPT’s expansion into e-commerce, Google announced AI Mode for Shopping, which does not depend on prompt-based interactions but on real-time search signals and user data. 

Announced at Google I/O, its AI-powered features include Virtual Try-On, conversational commerce, and enhanced brand controls for retailers. While others build shopping tools around language models and third-party integrations, Google is doubling down on its long-term asset: the Shopping Graph, made up of more than 50 billion product listings directly sourced from advertisers.

Here’s a breakdown of what AI Mode is, what it can do, and how it will transform the way we use Google.

Note: AI Mode is launching first in the U.S. If you’re outside the U.S., use a U.S.-based VPN to get early access and try out AI Mode in action.

What is AI Mode Shopping Experience?

According to Google, “people are using Google Search more than ever as they get help with new and more complex questions.” AI in Search is making it easier to ask Google anything and get helpful, relevant responses, along with links to the web.

AI Mode transforms Google Search into a more conversational discovery experience. Rather than targeting keywords, users can ask broader questions like “best jackets for a rainy city trip under £100”—and Google responds with shoppable results.

The answers? Real-time product listings pulled directly from Google’s Shopping Graph:

  • Merchant-supplied titles, images, availability, prices, and variants
  • Updated more than 2 billion times per hour
  • Designed to reflect actual, purchasable inventory, not theoretical options

It marks a shift from Search as a text-based tool to an AI-powered assistant.

This is a signal to advertisers: the better your feed, the more visibility you’ll get across these new touchpoints.

How Google’s AI Mode Helps Shoppers Find Your Products

Designed to help advertisers connect with shoppers in more visual and action-driven ways, here’s how AI Mode benefits advertisers:

Real-Time Product Data

Backed by over 50 billion product listings, users get detailed info including:

  • User reviews
  • Real-time prices
  • Colour and size options
  • Availability

This data refreshes over 2 billion times per hour, so your product listings are always up to date and competitive.

A.I. Agents: Shopping Assistants

Google’s vision is clear: AI agents that handle shopping tasks for users—booking reservations, planning trips, and yes, buying your products.

This is the early version of what the next generation of paid media may operate around.

Virtual Try-Ons

Google’s Virtual Try-On (VTO) now covers both women’s and men’s tops, with plans to expand to more categories. It uses generative AI to simulate how clothes fit on different body types, skin tones, and poses.

This experience is only as good as the product data behind it, meaning feed quality, image variety, and structured metadata influence visibility.

Try Clothes On Using A Photo

This one is huge for e-commerce and fashion lovers: Google’s new AI Shopping Assistant lets users virtually try on clothes using just an image.

Shoppers can upload a photo and see exactly how your products will look on them — no more relying on virtual models. This is a massive upgrade from the experimental try-on tools of the past.

Powered by a custom image generation model that understands:

  • Human body shapes and poses
  • Fabric behaviors like folding, stretching, and draping

And if they love your product? Google’s new A.I. checkout assistant can help buy it on their behalf too.

One-Tap Purchase

When a user likes a product, they can wait for a price drop and tap “Buy for me.” 

Google will:

  • Add the item to the merchant’s cart
  • Autofill shipping/payment info via Google Pay
  • Complete the checkout securely

This functionality will roll out in the U.S. in the coming months, offering advertisers a more seamless way to convert high-intent shoppers.

Custom Charts and Data Visualisation

Need help understanding data? AI Mode can now create custom charts and graphs to visualise your data — perfect for marketers, analysts, students, and more.

This makes it much easier to interpret complex information or summarise insights directly in the search interface.

Why Retailers Should Take This Seriously

This rollout reinforces three key shifts:

1. A Feed-First Strategy Is Now Critical

Every aspect of AI Mode—from discovery to creative to checkout—relies on structured product data. A clean feed with accurate attributes, product titles, descriptions, quality images, and variant tagging is your visibility engine. 

A poorly optimised Merchant Center feed doesn’t just limit Shopping visibility but also undermines performance across Search, AI Mode, and beyond.

2. Search Has Evolved Beyond Keywords

With AI Mode, discovery is shifting from keyword matching to intent-driven exploration. 

The old keyword-first strategies won’t be enough to win in a system designed to read and interpret context. Visibility now depends on relevance, context, and content, not just exact match coverage.

3. Performance Max Is Next in Line

While this update already targets Search and Performance Max, given that the 50 billion product listings refer to Google Shopping, PMax, and Merchant Center Data. 

It’s not too hard to imagine a future where the results will integrate Performance Max ad inventory, shaping everything from asset delivery and creative optimisation to audience expansion across Google surfaces.

AI Mode Shopping Experience: Google’s Answer to ChatGPT Commerce

This announcement is Google’s answer to ChatGPT’s shopping ambitions, but with one major advantage: real-time, merchant-supplied product data that’s already at scale.

Where others rely on prompts, Google relies on structure. 

It’s a reminder that e-commerce growth belongs to brands who master their data, not just their campaigns. To stay competitive in this new era, retailers must:

  • Prioritise feed enrichment and hygiene
  • Treat product imagery like creative assets
  • Align campaign strategy with product-level performance data

Because when AI runs the experience, your inputs are everything.

Need a fresh perspective? Let’s talk.

At 360 OM, we specialise in helping businesses take their marketing efforts to the next level. Our team stays on top of industry trends, uses data-informed decisions to maximise your ROI, and provides full transparency through comprehensive reports.

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