Google Launches Universal Commerce Protocol for AI Shopping

Google has introduced the Universal Commerce Protocol (UCP), a new open standard designed to advance agentic commerce. This framework integrates the capabilities of AI agents with online shopping platforms to facilitate consumer purchases. The launch of UCP brings three distinct shopping features aimed at streamlining the buying experience for users and providing new tools for retailers.

The new features focus on different stages of the shopping journey. For consumers, there is a streamlined checkout process directly within search results. For merchants, Google is launching AI-driven sales associates and a new method for presenting targeted offers. The UCP was developed in collaboration with major industry players and is designed to work alongside existing payment and agent protocols.

The introduction of the Universal Commerce Protocol brings significant updates to the consumer shopping experience within Google Search. A primary addition is the new checkout feature integrated into Google's AI mode. This functionality allows customers to purchase eligible products from specific US retailers without leaving the search interface. Currently, the transaction process supports Google Pay, though Google has outlined plans to expand payment options shortly.

Future updates to the checkout feature will include compatibility with PayPal. Beyond payment processing, the system is set to incorporate additional capabilities designed to assist the shopper. These enhancements will include related product discovery tools and the ability to utilize loyalty points during the checkout process. This approach aims to create a more seamless path from product discovery to purchase completion.

On the merchant side, the UCP establishes the Business Agent feature. Google describes this tool as "a virtual sales associate that can answer product questions in a brand’s voice." This AI-driven agent is designed to handle customer inquiries and provide support, functioning as an automated representative for the brand. The Business Agent is scheduled to launch with a group of early adopters.

Participating retailers at launch will include:

• Lowe’s
• Michaels
• Poshmark
• Reebok

In addition to the Business Agent, the UCP supports the Direct Offers feature. This tool allows companies that advertise with Google to "present exclusive offers for shoppers who are ready to buy, directly in AI Mode." The Direct Offers feature is designed to work in tandem with the advertisements currently being tested within AI Mode, targeting users at the point of purchase intent.

The Universal Commerce Protocol serves as a unifying layer connecting Google Search, retailers, and payment processors. The stated goal is to make online shopping easier, covering the entire lifecycle from product discovery to purchase completion and "post-purchase support." Google has ensured that the new protocol is compatible with existing industry standards. Specifically, UCP works with protocols such as Agent2Agent, Agent Payment Protocols, and Model Context Protocol.

The development of UCP was a collaborative effort involving major entities in the commerce sector. It was co-developed with industry giants including Shopify, Etsy, and Walmart. Furthermore, the protocol has received endorsement from a wider array of companies within the ecosystem, including Macy's, Stripe, and Visa.