Google unveils new AI protocol to enhance commerce efficiency

Google Experiments with Integrating AI Overviews and Mode

Google has introduced a new open standard, known as the Universal Commerce Protocol (UCP), aimed at optimizing AI-driven shopping experiences. This announcement was made at the National Retail Federation (NRF) conference and highlights collaboration with major retail players including Shopify, Etsy, Wayfair, Target, and Walmart.

The UCP is designed to streamline various stages of the consumer purchasing journey, from product discovery to post-purchase support, by allowing different AI agents to function seamlessly across these phases. This eliminates the need for separate connections with multiple agent types, enhancing overall efficiency.

Google confirmed that UCP will integrate with existing protocols such as the Agent Payments Protocol (A2P), which was launched previously, alongside Agent2Agent (A2A) and Model Context Protocol (MCP). Retailers can customize their experience by selecting specific extensions of the protocol that best meet their operational needs.

In practical applications, UCP will soon be featured in eligible Google product listings in AI mode, enabling consumers to check out directly with U.S.-based retailers during their product research. Transactions will support Google Pay and will utilize saved shipping details from Google Wallet, with future support for PayPal also on the horizon.

Highlighting the potential of this new protocol, Shopify CEO Tobi Lutke stated, “It excels at connecting consumers with products they might not have typically searched for, creating serendipitous shopping experiences.” In a similar vein, Shopify recently launched an integration with Microsoft Copilot to facilitate easier checkout within conversational interfaces.

Additionally, Google is rolling out a feature allowing brands to provide discounts in real-time while users are seeking product recommendations through AI. For example, a user searching for a stylish rug could receive a tailored discount offer from retailers at that moment.

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Merchants will also benefit from enhanced data attributes available in the Merchant Center, optimizing how products are showcased in AI search results. Companies like PayPal and OpenAI are investing in advancing seller visibility in AI-driven environments, while startups focus on improving product discoverability through chatbot interactions.

Moreover, Google has enabled merchants to implement AI-powered Business Agents on their sites to assist customers with inquiries, with notable retailers like Lowe’s, Michael’s, Poshmark, and Reebok already using this technology. Competitors such as Meta and Shopify are also exploring AI tools for customer engagement and support.

The launch of Gemini Enterprise for Customer Experience (CX) further underscores Google’s commitment to enhancing retail and service sectors through AI technology. As giants like Google, Amazon, Walmart, and OpenAI continue to innovate in the AI-shopping landscape, Adobe recently reported an astounding 693.4% increase in traffic to seller sites from generative AI during the holiday season, though it remains unclear how this spike impacted actual sales.

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