Imagine visiting an online store. Usually, you browse products, compare options, and then decide what to buy. This process can be time-consuming and overwhelming, especially with thousands of options available.
Google Cloud’s new Agentic Commerce technology is changing this. It uses Autonomous AI to not just show products but actively assist in buying decisions, provide recommendations, and even handle parts of the transaction.
With this, online shopping is moving from passive browsing to active, personalized experiences, where AI acts like a personal shopping assistant, making your journey smoother and smarter.
What is Agentic Commerce?
Key Point: AI doesn’t just display products; it acts on behalf of the customer.
Explanation:
- Traditionally, AI in e-commerce only provided suggestions or search results.
- With Agentic Commerce, AI can understand your preferences, past purchases, and interests.
- It can recommend products, add items to your cart, and even assist with checkout.
- This creates a shopping experience that feels personalized and proactive, like having a dedicated shopping assistant.
Benefit: Customers save time and effort while businesses get better engagement and higher conversion rates.
Universal Commerce Protocol (UCP)
Key Point: AI can now operate across multiple platforms seamlessly.
Explanation:
- Google Cloud introduced Universal Commerce Protocol (UCP) to standardize AI-driven shopping.
- AI agents can shop across different websites, apps, and stores using a unified system.
- This includes searching for products, comparing prices, managing carts, and completing payments.
Benefit: Customers enjoy a consistent and smooth shopping experience across platforms, while retailers benefit from broader reach and integrated AI support.
Google + Walmart Partnership
Key Point: AI-assisted shopping directly integrated into chat.
Explanation:
- Walmart partnered with Google to allow shopping within the Gemini AI chat.
- Customers can search for products, view options, compare prices, and make purchases without leaving the chat interface.
- AI provides real-time recommendations, helps with checkout, and can answer product-related questions.
Benefit: Simplifies the buying process and keeps customers engaged within one platform, increasing sales and customer satisfaction.
Personalized Shopping Ads with AI
Key Point: Ads are now smarter and targeted.
Explanation:
- Google’s AI tools now display personalized shopping ads.
- These ads are based on your preferences, search history, and purchase behavior.
- Irrelevant ads are minimized, and tailored promotions are shown instead.
Benefit: Customers get relevant offers, making it easier to find products they actually want. Retailers see higher click-through and conversion rates.
Shopify and Small Businesses Join AI Commerce
Key Point: AI-powered shopping is accessible to small businesses too.
Explanation:
- Shopify integrates with Google Cloud AI to help merchants create personalized shopping experiences.
- Customers can chat with AI to get product recommendations and purchase directly.
- AI provides information on stock availability, discounts, and loyalty rewards.
Benefit: Small businesses can compete with larger retailers by offering a smart, AI-driven shopping experience.
Gemini Enterprise Retail Solution
Key Point: Combines shopping and customer service into one platform.
Explanation:
- Gemini Enterprise allows AI to handle customer queries, suggest products, and assist in purchases.
- Everything is managed from a single interface, reducing friction in the shopping journey.
- Retailers can track customer interactions and improve personalization.
Benefit: Customers experience efficient, smooth shopping, and businesses benefit from better insights and customer engagement.
Kroger and Other Retailers Using AI
Key Point: Major retailers are integrating AI assistants.
Explanation:
- Kroger uses Google Cloud’s AI to offer a personal shopping assistant to customers.
- AI can suggest products, manage shopping lists, and plan meals.
- This ensures customers find what they need faster and make smarter buying decisions.
Benefit: Creates a more satisfying shopping experience, while retailers get higher retention and sales.
CEO Sundar Pichai’s Vision
Key Point: AI-driven retail is the next big shift.
Sundar Pichai highlighted that Agentic Commerce represents the next era of retail.
AI transforms every step of the retail experience: discovery, recommendations, transactions, and support.
Businesses can offer personalized, seamless experiences, improving both customer satisfaction and profitability.
AI not only enhances convenience for customers but also helps retailers optimize operations and increase revenue.
Benefits of Agentic Commerce for Customers
- Time-Saving: AI handles search, comparison, and checkout.
- Personalization: Tailored suggestions based on preferences.
- Convenience: One platform handles multiple tasks.
- Better Offers: AI shows relevant deals and discounts.
- Proactive Assistance: AI can complete purchases if the customer desires.
Benefits for Retailers and Businesses
- Higher Conversion: Personalized AI recommendations increase purchase likelihood.
- Customer Insights: AI collects data to optimize marketing and sales.
- Seamless Integration: Works across multiple platforms and stores.
- Competitive Advantage: Smaller businesses can compete using AI-driven tools.
- Reduced Friction: AI simplifies the entire customer journey, improving loyalty.
The Future of Shopping is Here
Google Cloud’s Agentic Commerce is redefining online shopping. With AI actively assisting in browsing, comparing, and purchasing, the shopping experience becomes:
- Faster – Less manual searching and comparing.
- Smarter – AI recommends what you are likely to buy.
- Personalized – Every customer gets a unique shopping journey.
Soon, every online shopper could have their AI assistant, making online retail intuitive, effortless, and enjoyable.
Bottom Line: Agentic Commerce is not just a technological upgrade—it’s a revolution in how we shop online, bridging the gap between passive browsing and active, intelligent purchasing.
Source: google cloud blog
