In a major move set to reshape the future of online retail, Google has unveiled the Universal Commerce Protocol (UCP), a groundbreaking open standard designed to allow artificial intelligence (AI) agents to communicate seamlessly across every stage of the shopping journey. This initiative is developed in collaboration with retail giants and platforms including Shopify, Etsy, Wayfair, Target, and Walmart.
Sundar Pichai and Elon Musk React to the New Protocol
Google CEO Sundar Pichai took to the microblogging platform X, formerly known as Twitter, to announce the development. He stated that AI agents are poised to become a central part of the shopping experience in the near future. To build the necessary foundation, Google partnered with key industry players to create UCP.
"AI agents will be a big part of how we shop in the not-so-distant future," Pichai wrote. "To help lay the groundwork, we partnered with Shopify, Etsy, Wayfair, Target and Walmart to create the Universal Commerce Protocol, a new open standard for agents and systems to talk to each other across every step of the shopping journey." He further revealed that UCP will soon power native checkout, enabling consumers to buy directly within Google's AI Mode and the Gemini app.
Interestingly, the post caught the attention of Tesla and X CEO Elon Musk, who replied with a single word: "Interesting."
Powering the Agentic Shopping Era
The announcement was made at the National Retail Federation's annual conference, where Google showcased a suite of new technologies aimed at helping retailers succeed in what it terms the 'agentic shopping era.' The cornerstone of this vision is the Universal Commerce Protocol.
UCP is designed to establish a common language for AI agents and commerce systems to work together across different consumer interfaces, businesses, and payment providers. Instead of requiring unique, one-off connections for every individual AI agent, UCP enables all compliant agents to interact easily, streamlining the process from product discovery and purchase to post-purchase support.
Introducing Business Agent and Direct Offers
Alongside UCP, Google introduced several other tools. One key innovation is the Business Agent, a new feature that allows shoppers to chat directly with brands right on Google Search. Functioning like a virtual sales associate, it can answer detailed product questions in the brand's unique voice. This tool is intended to help retailers connect with potential customers at critical decision-making moments and ultimately drive sales.
Google also revealed new methods for retailers to optimize their online presence. These go beyond traditional keyword matching to leverage existing data feeds, incorporating elements like answers to common product questions, compatible accessories, or potential substitutes.
Furthermore, the tech giant announced a pilot for Direct Offers within Google Ads. This feature will allow advertisers to present exclusive, ready-to-buy offers—such as a special 20% discount—directly within the AI Mode interface, targeting shoppers who are at the final stage of their purchase journey.
The launch of the Universal Commerce Protocol represents a significant step toward a more interconnected and AI-driven ecommerce landscape. By creating an open standard with major retail partners, Google is positioning itself at the center of the next evolution of digital shopping, where AI agents could handle much of the consumer's journey autonomously.
