Google bolsters bet on AI-powered commerce with new platform for shopping agents

Core Insights - Google aims to establish the Universal Commerce Protocol (UCP) as an industry standard for AI tools in retail, facilitating a unified shopping experience from discovery to payment [1][6] - The e-commerce sector is becoming a competitive arena for generative AI, with Google competing against OpenAI, Perplexity, and Amazon for consumer engagement [2] Group 1: Universal Commerce Protocol (UCP) - UCP is designed to allow retailers to utilize AI agents and systems without the need to develop their own tools, promoting efficiency and integration across various functions [1][6] - The protocol was co-developed with major companies like Shopify, Etsy, Wayfair, and Target, and will support a new checkout feature in Google's AI Mode or Gemini App [6] Group 2: Competitive Landscape - OpenAI has introduced Instant Checkout, enabling purchases through ChatGPT, which may compete with UCP [3] - Perplexity is collaborating with PayPal to facilitate direct purchases within its chat platform, indicating a trend towards integrated shopping experiences [4] - Amazon's "Shop Direct" feature allows consumers to browse and purchase items from other brands directly on its platform, showcasing its competitive strategy [5] Group 3: Consumer Engagement and Advertising - Google has launched a feature called Business Agent, enabling shoppers to interact with brands in a conversational manner, reflecting a shift towards conversational commerce [7] - The company is testing "Direct Offers," allowing retailers to provide unique discounts based on user intent, enhancing the advertising ecosystem [8]