Google’s Business Shopping Agent Expands AI-Powered Online Shopping Capabilities
In Focus
- Google’s AI-powered business agent links retailers to shoppers
- New tools also make retail ads more visible in AI-powered search results
- A universal commerce protocol supports all aspects of online shopping
Google has widened AI application in online shopping with new tools and standards. The tools include a retailer chat agent, an open commerce protocol, a new advertising format designed to support AI-driven search. According to Gadgets360, Google’s AI business shopping agent is designed to improve product discovery, brand interactions, and purchase process. The new updates will be available to U.S. shoppers first.
AI Business Agent Connects Retailers to Shoppers
Google’s Gemini shopping agent connects retail businesses with customers and helps them manage their transactions. Designed to work like a virtual assistant, the AI agent is capable of adapting a retailer’s voice when answering customer queries.
The AI business shopping agent will be available to selected retailers in the U.S starting January 12, 2025. Google plans to introduce more features like in-chat purchases to the AI agent in coming months.
News of Google AI business agent comes soon after the tech giant introduced the AI-powered virtual try-on feature to help customers shop for apparel. With virtual try-on, customers can upload their own photos and preview outfits before making a purchase.
New Tools Boost Retail Business Advertising
Google is introducing Direct Offers to strengthen retail advertising within AI Mode in Search, which first launched in May 2025 to facilitate user interaction with Gemini AI. The new feature, which is called Direct Offers in AI Mode in Search, displays retail offers like discounts to potential customers identified by Gemini AI.
Initially, only discount offers will be available on the Direct Offers in AI Mode in Search feature. Google will be introducing other types of offers like free shipping and product bundles to the tool in coming months. The search giant said it had started testing the tool with brands such as Shopify and Rugs USA.
The tech giant has also added data attributes to its Merchant Center to make retail businesses more visible in AI-powered shopping results. Some important Google merchant AI updates include highlights of compatible accessories, frequent questions, and alternatives.
Google unveiled AI-powered business shopping tools months after OpenAI introduced a shopping research tool to ChatGPT. The tool curates product options for users, allowing them to find items using simple descriptions.
A New Standard for Retail Shopping Experience
Besides the AI-powered tools, Google introduced a framework that supports the retail shopping experience by linking AI agents, payment systems, and merchants. The framework, which is known as the Universal Commerce Protocol (UCP), is designed to support all aspects of online shopping, from product discovery, to completing purchases, and after-sales support.
Google collaborated with different retail firms to develop the UCP. These include Etsy, Shopify, Target, Walmart, and Wayfair. According to Google, the new framework has been backed by more than 20 companies including Visa, American Express, Flipkart, Mastercard, and Stripe. With the UCP in place, different systems can connect without requiring separate integrations.
