Google Brings Business Agent AI Shopping Tool to Search Alongside New Checkout, Ad Features

Google has announced a new set of tools and standards designed to broaden the use of AI in online shopping, including an open commerce protocol, a retailer chat agent, and new advertising formats for AI-driven search. The updates focus on how shoppers discover products, interact with brands, and complete purchases across Google services. They also aim to give retailers more ways to connect with customers and manage transactions as AI plays a larger role in online retail. Several of these features will begin rolling out in the US first.

Google Unveils New AI Tools to Change How People Shop Online

The company said in a blog post that its Business Agent is a new feature that lets shoppers chat with retailers directly within Google Search. The tool functions as a branded virtual assistant that can respond to product questions in a retailer's own voice.

Business Agent is set to go live on January 12 for some US retailers, including Lowe's, Michael's, Poshmark, and Reebok. Additional features, such as training the agent using retailer data and enabling direct purchases through chat, are expected in the future.

The Mountain View-based tech giant is also introducing new data attributes in Merchant Centre to help retailers appear in AI-powered shopping results. These additions include common questions, compatible accessories, and alternative products. The company said these tools will first be made available to a small group of retailers before being rolled out more widely.

In advertising, Google revealed a new pilot called Direct Offers for AI Mode in Search. This feature allows retailers to display special deals, such as 20 percent discounts, when Google's AI identifies shoppers who are likely ready to buy. The company said it will start with discounts and later add other types of offers, including bundles and free shipping. Google added that brands such as Petco, e.l.f. Cosmetics, Samsonite, Rugs USA, and Shopify merchants are taking part in early trials of Direct Offers.

The search giant also launched its Universal Commerce Protocol, or UCP, which is meant to allow AI agents, retailers, and payment platforms to work together across the entire shopping journey, from product discovery to checkout, as well as post-purchase support.

UCP was developed in collaboration with companies such as Shopify, Etsy, Wayfair, Target, and Walmart. More than 20 other firms, including Flipkart, Visa, Mastercard, American Express, Stripe, and The Home Depot, have also backed the standard, the company said. It is intended to serve as a shared technical framework, so different systems can connect without needing separate integrations for each service.