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The Rise of AI-Powered Shopping: How Google’s Gemini Is Changing E-Commerce

Google stepped up the heat in the AI shopping battles, revealing plans to transform Gemini into a merchant and releasing an open-source standard in collaboration with large retailers such as Shopify, Walmart, and Target. The move comes as startups such as OpenAI, Amazon, and Perplexity compete for power and influence at the centre of a rising AI-powered ecommerce ecosystem, with consumers increasingly relying on the technology to expedite their purchases.

Google said it had partnered with Shopify, Target, Walmart, Wayfair, and Etsy to develop a protocol it hopes will become the industry standard for shopping with AI.

The standard, called the Universal Commerce Protocol (UCP), is designed to streamline how AI agents and retailers’ systems communicate throughout the shopping process, from product discovery and payment to post-purchase support, Google vice president of ads and commerce Vidhya Srinivasan explained in a blog post. In other words, it sets up a common language for agents AI tools capable of acting independently  and online shopping systems.

Google says the new standard will power a forthcoming “checkout feature” on Search and Gemini, which would allow users to make purchases directly using the AI tools without having to switch between apps or webpages. The feature will bring Gemini and Google’s AI Mode in Search in line with competitors like Microsoft’s Copilot and OpenAI’s ChatGPT, which launched purchasing options last year.

Google hopes UCP will be widely used by retailers and others in the e-commerce ecosystem, an area that is quickly becoming a battleground for companies to prove the tangible value of generative AI. UCP is open-source, meaning companies can freely use it rather than having to develop their own tools to deal with AI agents. It is compatible with existing industry standards like the Model Context Protocol, Srinivasan says. It will compete with a similar standard for agentic shopping OpenAI launched last year, the Agentic Commerce Protocol, which is also open-source.

UCP has already secured buy-in from more than 20 other companies in the online shopping ecosystem, the Google executive says. This includes payment giants like Visa, Mastercard, American Express, PayPal, and Stripe, as well as retailers like The Home Depot, Macy’s, Best Buy, Kroger, Lowe’s, Gap, and Zalando. Ant Group, an affiliate of Chinese ecommerce giant Alibaba, has also endorsed the standard. Many of these partners are likely to — or already — partner with other AI companies as well. Shopify merchants, for example, can sell in AI modes on Gemini, ChatGPT, and Microsoft Copilot, and PayPal has also partnered with OpenAI.

Along with the Gemini buy button and the UCP standard, Google announced the launch of a business AI agent that lets shoppers chat directly with brand virtual assistants on Search to get product information in the brand’s voice. Retailers such as Lowe’s, Michael’s, Poshmark, and Reebok have already joined. While AI shopping tools are still evolving and have shown occasional glitches, companies remain confident in their potential. Google CEO Sundar Pichai stated that this new standard lays the groundwork for agentic shopping, which is expected to become a significant part of how people shop in the near future.

In conclusion, Google’s push with Gemini and the Universal Commerce Protocol marks a major shift toward AI-driven, seamless shopping experiences. As adoption grows, agentic shopping is set to redefine how consumers discover, purchase, and interact with brands in the digital marketplace.

eWoke provides professional E-commerce Web Development Services in Kochi, Kerala, helping businesses build secure, scalable, and user-friendly online stores. Our solutions focus on seamless shopping experiences, responsive design, fast performance, and easy management. We develop customized e-commerce websites that support business growth, improve customer engagement, and drive higher conversions using the latest technologies and best industry practices.

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