Google introduces AI to seize the e-commerce market! UCP integrates search and payment into an all-in-one solution

As retailers accelerate the adoption of AI tools to enhance operations and customer interactions, competition among tech giants is also intensifying. At the National Retail Federation (NRF) annual expo held on Sunday, Google officially announced the launch of the “Universal Commerce Protocol” (UCP), aiming to establish industry standards for AI agents and retail systems, positioning itself at the core of this retail transformation.

Creating a New Standard for AI in Retail: Solving Development Challenges

According to reports, UCP is an open-source protocol developed collaboratively by Google and well-known retail and e-commerce platforms such as Shopify, Etsy, Wayfair, and Target. Its goal is to create a unified system covering “search exploration,” “purchase checkout,” and “after-sales support.” This protocol allows retailers to avoid the costs of developing cumbersome tools or integrating individual functions, enabling AI agents to operate through standardized interfaces.

Vidhya Srinivasan, Vice President of Google Ads and Commerce, emphasized in an interview: “Establishing a standardized model is crucial; only then can we scale and ensure all players are prepared.” She stated that businesses can flexibly select the features they need based on their requirements, offering significant flexibility for merchants.

The Generative AI E-commerce Battle Begins: OpenAI and Amazon as Strong Competitors

E-commerce has become a battleground for the generative AI market. Google faces fierce competition from OpenAI, Perplexity, and Amazon, all attempting to enable consumers to complete the entire journey from search to shopping on their platforms.

OpenAI: Last September, OpenAI launched the “Instant Checkout” feature, allowing users to shop directly through ChatGPT and earn transaction fees; additionally, OpenAI has partnered with Stripe to develop the “Agentic Commerce Protocol,” also open-source, directly competing with Google’s UCP.

Perplexity: Announced a partnership with PayPal, enabling users to shop and book tickets directly within chat interfaces, and plans to launch a free agent-based shopping product.

Amazon: Introduced “Shop Direct” and “Buy for Me” features, utilizing AI agents to assist consumers with cross-site shopping.

According to a McKinsey report from October last year, driven by the development of AI tools and agentic commerce, the global retail market is expected to reach a massive opportunity of $3 trillion to $5 trillion by 2030.

Integrating Gemini Applications and Advertising Innovation: Promoting “Conversational Commerce”

On the application level, UCP will support new checkout features, allowing users to complete purchases directly within Google’s AI models or Gemini applications. Currently, Google Pay is the primary payment method, with plans to include third-party payments such as PayPal in the future. UCP will also be compatible with existing protocols.

Additionally, Google has simultaneously launched the Business Agent feature, enabling consumers to interact and converse with brands. Srinivasan pointed out that this is in response to the trend of “conversational commerce,” allowing retailers to build connections with users on Google’s platform while maintaining their brand identity. Google is also testing a new feature called Direct Offers, where AI chatbots detect user purchase intent and immediately push exclusive discount ads.

Srinivasan summarized: “We play the role of a matchmaker within the ecosystem; advertising is one of the ways. We highly value innovation in this area and hope to create mutual value for both retailers and buyers.”

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