Wayfair (W) is making a major bet on artificial intelligence to transform how consumers shop for home goods. Yesterday, it announced its role as a foundational partner in the development of Google's (GOOG) (GOOGL) Universal Commerce Protocol. The open standard aims to create seamless interactions between AI agents and retail platforms, potentially reshaping the entire e-commerce landscape. The home furnishings retailer revealed that it co-developed this protocol with Google, which will soon power a new c ...

Core Insights - AI models are consistent in product characterization but inconsistent in financial stability and governance assessments, which can impact procurement decisions [1][4][6] Group 1: AI and Commerce - Companies are increasingly concerned about how to ensure their products are recommended by AI agents, leading to the emergence of generative engine optimization (GEO) services [2][3] - Google has launched a shopping checkout feature in its AI Mode, with Walmart as one of the first adopters, indicating a significant shift in e-commerce [3] - Google Cloud introduced AI features to support agentic commerce, including a new product that combines shopping and customer support, which could reshape business organization [3] Group 2: AI Model Reliability - AIVO Standard found that AI models struggle with questions about cybersecurity certifications and governance standards, potentially favoring larger, publicly traded companies over smaller, privately-held ones [4][6] - AI models not only list risk factors for weight loss drugs but also make recommendations, influencing patient preferences despite disclaimers [5] - The reliability issues of AI models persist across various prompts, with models sometimes doubling down on incorrect information [6] Group 3: Challenges in Generative Engine Optimization - GEO is still evolving, and companies should be cautious about trusting marketing tech firms that claim to effectively shape AI responses [7][8] - The variability in AI responses based on brand information suggests that there is no guaranteed method for influencing chatbot outputs [8] - Companies often lack systems to track the prompts and responses that inform decision-making, which poses risks, especially in regulated industries [9]

This story was originally published on Retail Dive. To receive daily news and insights, subscribe to our free daily Retail Dive newsletter. NEW YORK — Walmart on Sunday debuted plans for a new consumer experience directly in Google’s AI chatbot Gemini, adding to its list of AI initiatives with external partners. The plan will allow Gemini users to discover Walmart and Sam’s Club merchandise when conducting research, with Gemini automatically including in-store and online products in response to queries wh ...