Google has announced an open standard for AI-driven shopping called the Universal Commerce Protocol (UCP). The tech giant developed UCP in partnership with Shopify, Etsy, Wayfair, Target, and Walmart and has received endorsements from major payment processors, including Stripe, American Express, and Visa.
The UCP addresses a core problem in retail: Merchants must create separate connections for each AI shopping platform. Google’s standard creates one common language, allowing agents and retailers to work together across search, apps, and payment systems. The protocol works with existing systems such as Google’s Agent Payments Protocol (AP2) and OpenAI’s Agentic Commerce Protocol.
The UCP will power three new tools, which work within Google Search, Gemini, or both:
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Business Agent, which lets shoppers “chat” with brands via Search. Lowe’s, Michaels, and Reebok are actively using the feature, with other brands to come.
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AI Mode checkout lets users buy from eligible US retailers without leaving Search or Gemini. For now, users need Google Wallet to complete a payment, but support for PayPal is coming soon.
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Direct Offers let retailers offer discounts in AI Mode, while Google’s AI decides when to display these offers based on purchase intent.
Google reports that AI has driven 1,200% more traffic to online retailers year over year, while traditional search traffic has declined by 10%. Merchants using multi-agent systems report 60% fewer errors and 25% lower costs.
In a similar attempt to capitalize on the AI shopping craze, OpenAI launched Instant Checkout within ChatGPT back in September. The chatbot’s shopping mode is powered by the Agentic Commerce Protocol (ACP) and lets users buy products from Etsy and Shopify merchants without leaving ChatGPT.
