New tech and tools for retailers to succeed in an agentic shopping era

Summary

Google is accelerating agentic commerce with three major announcements targeting retail growth in the AI era. First, the Universal Commerce Protocol (UCP) creates an open standard for agents to work across the shopping journey, from discovery to post-purchase. Endorsed by Shopify, Etsy, Wayfair, Target, Walmart, and over 20 others including Visa and Mastercard, UCP eliminates the need for unique integrations per agent.

Starting soon, it will power checkout on Google product listings in AI Mode and Gemini, using Google Pay and PayPal, with retailers remaining the seller of record. This aims to capture sales and reduce abandoned carts. Second, Business Agent lets brands create branded AI agents on Search, acting as virtual sales associates.

Starting with Lowe's, Michael's, and others, retailers can customize the agent to answer questions in brand voice, with future capabilities for direct purchasing and personalized offers. Third, Direct Offers is a Google Ads pilot in AI Mode, allowing retailers to serve exclusive discounts (e.g., 20% off) when shoppers are ready to buy. Retailers set up offers, and AI determines relevance.

Initially focused on discounts, it will expand to bundles and free shipping. Partners include Petco, e.l.f. Cosmetics, and Samsonite.

Additionally, Google introduces new data attributes in Merchant Center for conversational commerce, such as common questions and compatible accessories. For ad ops decision-makers, key takeaways: (1) Optimize product feeds with new attributes to enable AI-powered discovery; (2) Test Direct Offers to capture intent-driven shoppers with value propositions; (3) Activate Business Agent to engage customers at critical moments; (4) Prepare for UCP integration to streamline agentic checkout. These tools shift retail from keyword-based to conversational, requiring adaptive strategies.

Analyst Note

The article signals a structural shift in retail media as Google doubles down on agentic commerce. Launching the Universal Commerce Protocol (UCP) as an open standard is a strategic move to reduce fragmentation across agents, payment systems, and retailers—positioning Google as the interoperability layer. For UA and monetization teams, the immediate practical impact is threefold: First, Direct Offers introduces a new, AI-mediated ad format that serves exclusive discounts in AI Mode, creating a performance-based opportunity to capture high-intent shoppers.

Second, Business Agent opens a chat-based brand surface on Search, acting as a virtual sales associate—this will require advertisers to manage brand consistency and potentially train agents with product data. Third, the new data attributes in Merchant Center expand feed requirements beyond keywords to include common questions, accessories, and substitutes, reflecting the shift from keyword-based to intent-based discovery. Competitive angle: By partnering with major retailers and platforms like Shopify, Etsy, and Walmart, Google is building an ecosystem that could challenge Amazon's closed-loop retail media.

The timing is critical as conversational commerce gains traction; advertisers must prepare for a future where product feeds and offer optimization extend into agent-driven, context-aware interactions.