Google Embraces Agentic Commerce With Universal Protocol Release

Something has happened that could fundamentally reshape how commerce works online.

Google has unveiled its Universal Commerce Protocol (UCP) at the National Retail Federation’s annual show, creating what could become the infrastructure layer for an AI-dominated shopping future.

This move represents Google’s counterstrike against competitors who’ve been rapidly claiming territory in AI-powered commerce. With backing from retail powerhouses including Shopify, Etsy, Wayfair, Target, and Walmart, UCP creates a standardized framework that lets AI agents handle the entire shopping journey from discovery to checkout without custom integrations.

There’s a lot at stake. McKinsey projects the retail market could represent a $3 trillion to $5 trillion opportunity globally by 2030, driven by AI tools that streamline shopping processes.

Google is positioning UCP as the key to capturing this massive market before competitors can establish their own standards.

The AI shopping war erupts

The competitive landscape has transformed dramatically over recent months. In October, OpenAI launched Instant Checkout, allowing users to purchase products directly through ChatGPT while developing its own open-source Agentic Commerce Protocol with Stripe.

In parallel, Perplexity has integrated AI shopping into its chat interface, enabling users to book travel, buy products, and secure event tickets without leaving the platform. Amazon has simultaneously rolled out Shop Direct, a feature that lets consumers browse other brands’ products directly on Amazon’s platform.

Google’s approach differentiates itself through infrastructure strategy rather than proprietary shopping tools. UCP offers infrastructure that maintains compatibility with existing protocols while preparing businesses for an AI-dominated future. The system works with existing retail infrastructure while supporting various integration methods, including APIs, Agent2Agent communication, and Model Context Protocol.

PayPal support is planned for the future, signaling the broad ecosystem support Google is building.

How shopping experiences will change

UCP will soon enable direct checkout from Google’s AI Mode and Gemini App, allowing users to complete purchases using Google Wallet without ever leaving their conversation with AI.

The company has introduced Business Agent, a feature that lets consumers chat directly with brands for personalized shopping experiences within their ecosystem. Most intriguingly, Google is testing Direct Offers, a new advertising format that presents contextual discounts when AI detects high purchase intent but price sensitivity.

The real disruption emerges from how UCP eliminates traditional checkout friction. Retailers remain the merchant of record and can customize integrations while benefiting from reduced checkout friction and lower abandonment rates. The framework works by creating a common language for AI agents to interact with any UCP-enabled retailer using standardized interfaces.

Consider the implications: instead of browsing websites, clicking add-to-cart, and navigating checkout flows, AI agents could handle entire purchase workflows conversationally. Think of it as having a personal shopping assistant that never leaves your side and can instantly buy anything from any participating retailer.

The broader implications extend beyond making checkout easier. As AI agents become more sophisticated and consumers increasingly expect seamless, conversational shopping experiences, whoever controls the underlying infrastructure gains enormous leverage over how commerce flows through the internet.

Amazon’s latest AI experiment has backfired, igniting a revolt amongst small retailers.

The post Google Embraces Agentic Commerce With Universal Protocol Release appeared first on eWEEK.