TLDR
- Google launched AI shopping agent tools called Gemini Enterprise for Customer Experience at the National Retail Federation show.
- Lowe’s, Kroger, and Papa Johns are testing Google’s AI agents for product discovery and ordering.
- Google introduced Universal Commerce Protocol, developed with Shopify, Etsy, Wayfair, and Target.
- The tools compete with OpenAI’s ChatGPT shopping and Microsoft’s Copilot checkout features.
- McKinsey estimates AI retail market could reach $3 trillion to $5 trillion by 2030.
Google unveiled AI shopping agent tools for retailers at the National Retail Federation show on Sunday. The announcement puts the search giant in direct competition with OpenAI and Microsoft.
The new tools, called Gemini Enterprise for Customer Experience, help retailers deploy AI agents for shopping and customer support. Major chains including Lowe’s, Kroger, and Papa Johns are already testing the technology.
Kroger launched a shopping agent in its mobile app that helps customers compare groceries and personalize shopping. The agent understands context like meal plans and time constraints.
Yael Cosset, Kroger’s chief digital officer, said retailers risk falling behind without AI agents. The Cincinnati-based grocer works with multiple vendors including OpenAI and Instacart.
Google Introduces Universal Commerce Protocol
Google announced the Universal Commerce Protocol, an open-source standard for AI shopping. The company developed UCP with Shopify, Etsy, Wayfair, and Target.
UCP creates a unified system from product search through checkout. Retailers can use it to build AI agents without creating systems from scratch.
Vidhya Srinivasan, Google’s vice president of ads and commerce, said the protocol provides flexibility for businesses. The protocol will power a new checkout feature in Google’s AI Mode and Gemini App.
Users can pay through Google Wallet, with PayPal and other payment methods coming later. Google is also testing Direct Offers, letting retailers promote discounts when AI Mode users show buying intent.
Building their own AI agents gives retailers more control than relying on ChatGPT or Copilot. When products appear in third-party chatbots, retailers risk losing customer loyalty and add-on sales.
Lauren Wiener from Boston Consulting Group noted retailers are investing in their own capabilities rather than depending on third parties.
Competition in AI Shopping Market
OpenAI launched Instant Checkout for ChatGPT last fall. Microsoft released a similar feature for Copilot in January.
Walmart partnered with OpenAI to sell products through ChatGPT. Perplexity partnered with PayPal for direct purchases.
McKinsey estimates the retail AI market could hit $3 trillion to $5 trillion globally by 2030.
Lowe’s uses Google’s shopping agent for its virtual assistant Mylow. When shoppers engage with Mylow online, the company’s conversion rate more than doubles.
Seemantini Godbole, Lowe’s chief digital officer, said AI technology moves so fast that systems become outdated in two weeks. The Mooresville, North Carolina-based retailer works with multiple vendors including OpenAI.
Papa Johns is testing Google’s food ordering agent. The agent can determine how many pizzas a group needs from a photo.
Kevin Vasconi, Papa Johns chief digital officer, said the chain doesn’t want to build AI models. “I want to be an AI expert in terms of, ‘How do I use the agents?'” he said.
Kroger, Lowe’s, and Papa Johns declined to share specific business results from Google’s retail agents.
