Retail is entering a decisive new phase. As artificial intelligence moves from assisting shoppers to acting on their behalf, agentic commerce has shifted from theory to practice. This transformation is redefining how consumers interact with brands and how retailers capture demand.
Recent announcements from Google signal a major step toward this future, introducing open standards and AI-powered tools designed to help retailers connect seamlessly with high-intent shoppers and convert interest into sales.
Here’s everything you need to know.
The Rise of Agentic Commerce in Retail
Agentic commerce is a new retail paradigm where AI agents discover products, compare options, and even complete purchases on behalf of consumers..
In this emerging landscape, success depends not just on visibility but on interoperability, trust, and real-time relevance. New technologies are now enabling retailers to meet customers at the exact moment of intent within AI-driven experiences that span search, conversation, and checkout.
Why Open Standards Matter in an Agentic Shopping World
One of the biggest challenges in agentic commerce is fragmentation. Without shared standards, retailers would need to build and maintain separate integrations for every AI agent, platform, or payment system.
This is a costly and inefficient approach.
To address this, Google has introduced the Universal Commerce Protocol (UCP), a new open standard designed to unify the entire shopping journey.
What the Universal Commerce Protocol Enables
UCP establishes a common language that allows AI agents, retailers, platforms, and payment providers to work together effortlessly. Instead of isolated systems, commerce becomes a connected ecosystem.
Key capabilities include:
- End-to-end coverage: Discovery, product evaluation, checkout, and post-purchase support
- Agent interoperability: One integration works across multiple AI agents and surfaces
- Compatibility with existing standards: Including Agent2Agent (A2A), Agent Payments Protocol (AP2), and Model Context Protocol (MCP)
- Cross-vertical flexibility: Designed to support retail categories from fashion and home to electronics and beyond
UCP was co-developed with major retailers such as Shopify, Etsy, Wayfair, Target, and Walmart, and is endorsed by a broad coalition of payments, commerce, and marketplace leaders across the ecosystem.
Seamless Checkout Where Shoppers Already Are
One of the most immediate impacts of UCP is its role in powering native checkout experiences within AI-driven discovery environments.
Soon, eligible U.S. retailers will be able to offer checkout directly from Google’s AI surfaces, such as AI Mode in Search and the Gemini app, right at the moment shoppers are researching products.
Why This Matters for Retailers
- Reduced friction: Fewer steps between discovery and purchase
- Lower cart abandonment: Checkout happens before intent fades
- Built-in trust and security: Transactions use Google Pay, saved Wallet details, and soon PayPal
- Retailer control: Merchants remain the seller of record and can customise integrations
Over time, these experiences will expand to include loyalty rewards, related product discovery, and tailored shopping flows, bringing more of the traditional in-store experience into AI-powered digital spaces.
Branded AI Agents: The New Digital Sales Associate
As shopping becomes more conversational, brands need a way to engage customers beyond static listings. Enter Business Agent, a new branded AI experience that allows shoppers to chat directly with retailers on Search.
This tool functions like a knowledgeable, always-on sales associate—answering questions, guiding decisions, and reflecting a brand’s unique voice.
Capabilities of Business Agent
- Responds to product and availability questions in real time
- Uses brand-approved tone, messaging, and data
- Engages shoppers during high-intent moments
- Can surface related products and personalised recommendations
Retailers such as Lowe’s, Michael’s, Poshmark, and Reebok are among the first to activate Business Agent, with broader customisation and agent-led checkout capabilities coming soon.
For retailers, this represents a shift from reactive customer support to proactive, AI-powered engagement at scale.
Getting Discovered in the Conversational Commerce Era
As consumers move from keyword searches to natural language queries, traditional product feeds are no longer enough. Retailers must adapt to how AI understands intent, context, and nuance.
To support this shift, Google is introducing dozens of new Merchant Center data attributes designed specifically for conversational discovery.
Examples of New Data Signals
- Answers to common product questions
- Compatible accessories and substitutes
- Use-case-driven descriptions
- Contextual product relationships
These attributes enhance how products appear across AI Mode, Gemini, and Business Agent helping retailers stay visible even as shopping becomes less keyword-driven and more dialogue-based.
Direct Offers: Smarter Promotions for High-Intent Shoppers
Price sensitivity hasn’t disappeared. It has become more contextual. Shoppers often need an extra incentive to move from consideration to purchase, especially when comparing similar products.
To address this, Google is piloting Direct Offers, a new ad format designed specifically for AI-powered discovery experiences.
How Direct Offers Work
- Retailers set up exclusive offers within their Google Ads campaigns
- AI determines when an offer is relevant to a shopper’s intent
- Discounts appear directly within AI Mode during decision moments
Initially focused on discounts, Direct Offers will expand to include value-driven incentives such as bundles and free shipping—helping retailers compete on more than just price.
Brands across categories, from beauty and pet care to luggage and home décor, are already shaping this pilot to better align promotions with shopper intent.
What This Means for Retailers Moving Forward
The agentic commerce era is not about replacing retailers—it’s about augmenting their reach and relevance.
Retailers that succeed will be those who:
- Embrace open standards to reduce friction and future-proof integrations
- Invest in conversational, branded AI experiences
- Optimise product data for intent-driven discovery
- Deliver personalised value at the moment of decision
AI agents are becoming the new front door to commerce. With the right tools and protocols in place, retailers can ensure that door leads directly to them.
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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