Below is a roundup of last week’s notable industry news, with summaries and our opinions. Google’s playing AI commerce chess…

Google rolls out AI commerce tools for retailers
Sources: Various
January 11th-12th, 2026

Summary: Google unveiled a suite of tools to help retailers navigate the shift to AI-powered shopping. The announcements include a new ad format, checkout capabilities, an open commerce standard, and branded AI agents, positioning Google to compete with OpenAI and, more importantly, Amazon, in the emerging agentic commerce space.

Direct Offers, a new ad pilot in AI Mode, lets advertisers present exclusive discounts to shoppers who are ready to buy. When someone searches for a product with specific attributes, like a modern rug for a high-traffic area that's easy to clean, Google's Gemini AI uses contextual information from the conversation and what shoppers have clicked on to determine when to show relevant offers. Advertisers pay per click. The pilot is live with Petco, e.l.f. Cosmetics, Samsonite, and Shopify merchants. 

Universal Commerce Protocol (UCP) is an open standard co-developed by Google, Shopify, Target, Walmart, Etsy, and Wayfair that lets different AI shopping assistants communicate with each other. The protocol creates a shared framework so AI agents can handle everything from product discovery to returns without custom integrations for each platform. UCP is backed by over 20 major companies, including The Home Depot, American Express, Best Buy, and more. 

A new checkout feature lets shoppers buy products directly inside AI Mode and Gemini from US retailers using the UCP framework. Payment happens through Google Pay or PayPal. Retailers control the experience and remain the official seller. Walmart and Google have already partnered to surface products in Gemini, with checkout happening through Walmart's system. (This capability is also already available through OpenAI's ChatGPT, and Microsoft launched the feature in Copilot on Monday.)

Google's Business Agent lets retailers run their own AI chatbot inside Google Search results. The bot responds to customer questions using the retailer's tone and messaging. Lowe's, Michaels, Poshmark, and Reebok are already using it. 

New Merchant Center data helps products appear more naturally in conversational AI results. Google expanded the types of product information retailers can submit to Merchant Center, going beyond basic specs to include FAQs, compatible add-ons, and alternative options shoppers might consider. 

Opinion: Google wants to move into commerce from the inside out (AI commerce infrastructure) in order to compete with Amazon, who owns commerce today from the outside in (commerce consumer experience).

Recruiting Walmart and Target as co-developers for UCP is smart. These retailers bring tons of transaction volume and strong anti-Amazon ambition, making UCP adoption feel like a competitive frontier for retailers rather than Google encroaching on their territory. It's the same playbook that made Android successful: give competitors a shared weapon against the market leader, then monetize the ecosystem through advertising.

When transactions start flowing through Gemini, enabled by UCP, Google will finally get what it's always lacked: actual purchase data at scale. Not "clicked on a product" data. Not "visited a retailer" data. Real conversion data showing who buys what, when, and for how much. That has the potential to significantly close the commerce media gap with Amazon.

The twenty-plus retailers backing UCP should recognize this isn't altruistic standardization by Google. They're trading Amazon's first-party data dominance for Google's infrastructure dependence. Different landlord, same rent.

Be wary, retailers. And watch out, Amazon. And Sam, THIS is how you monetize AI shopping intent with ads.

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