Google Introduces Universal Commerce Protocol for AI-Driven Shopping

Google has introduced a new open framework called the Universal Commerce Protocol (UCP), designed to support AI-powered shopping experiences. The announcement was made at the National Retail Federation (NRF) conference, highlighting Google’s push toward agent-driven commerce.

Created in collaboration with major retailers and platforms such as Shopify, Etsy, Wayfair, Target, and Walmart, UCP allows AI agents to operate seamlessly across the entire buying journey—from product discovery to post-purchase assistance. Instead of relying on multiple disconnected agents, the protocol aims to unify these interactions under a single standard.

Google confirmed that UCP is compatible with other agent-based systems it supports, including the Agent Payments Protocol (AP2), Agent2Agent (A2A), and Model Context Protocol (MCP). Businesses and developers can adopt only the protocol components that best fit their specific use cases.

In the near future, Google plans to apply UCP to eligible product listings shown in AI-powered search and Gemini apps. This will enable users in the U.S. to complete purchases directly while researching products, using Google Pay and stored shipping details from Google Wallet. Support for PayPal payments is also expected soon.

Shopify CEO Tobi Lütke emphasized the value of agent-driven discovery, noting that AI excels at connecting shoppers with products they may never have actively searched for. According to him, this element of unexpected discovery is where modern commerce truly thrives.

Alongside this, Shopify also announced a comparable checkout integration with Microsoft Copilot, allowing users to finalize purchases naturally within conversational shopping experiences.
Google is also enhancing promotional capabilities by allowing brands to offer real-time discounts when users seek product recommendations through AI search. For example, during a detailed product query, retailers can trigger targeted offers at the exact moment of consideration.

To further improve visibility, Google is expanding Merchant Center data attributes, helping sellers showcase products more effectively within AI-driven search results. Other companies, including PayPal and OpenAI, are exploring similar methods to boost merchant discovery inside AI chat interfaces, while startups are building tools to surface products directly within AI-generated responses.
Additionally, Google now enables merchants to embed branded AI Business Agents into Search, allowing automated responses to customer questions. Retailers such as Lowe’s, Michael’s, Poshmark, and Reebok are already using these agents. Competitors like Meta and Shopify are also advancing AI tools for customer engagement and support.

Google also unveiled Gemini Enterprise for Customer Experience (CX)—a new solution designed to manage shopping interactions and customer service workflows for retailers and restaurants.
As major players like Google, Amazon, Walmart, and OpenAI continue embedding AI into commerce, the shift is accelerating rapidly. Supporting this trend, Adobe recently reported a 693.4% surge in traffic to merchant websites driven by generative AI during the holiday season, though the direct impact on sales remains unclear.

Source: Techcrunch