Google and retail giants launch AI shopping standards to challenge Amazon

NEW YORK — Google has unveiled a new open standard called the Universal Commerce Protocol (UCP) designed to facilitate shopping through artificial intelligence agents, the company announced at the National Retail Federation’s annual conference.

Developed in partnership with retail giants including Shopify, Etsy, Wayfair, Target, and Walmart, the protocol allows AI agents to manage the entire shopping journey. The system supports every stage from initial product discovery to post-purchase customer service.

Google plans to integrate UCP into its AI-powered search features and the Gemini app. The update will enable customers in the United States to complete purchases directly from retailers within the search interface.

Users can finalize transactions using Google Pay and shipping details stored in Google Wallet, with PayPal support expected to follow soon. The protocol also enables brands to offer real-time discounts while users browse AI-generated product recommendations.

Additionally, the standard allows retailers to embed their own proprietary AI agents into Google Search to provide direct answers to customer inquiries.

Google’s rollout of the Universal Commerce Protocol (UCP) represents far more than a standard technical update; it is a calculated strategic gambit to define the operational architecture of the AI-driven e-commerce era. By establishing an “open” standard and forging a coalition with major retail stakeholders—conspicuously excluding Amazon—Google is effectively building a market-wide alliance to challenge its rival’s long-standing dominance.

The strategic objective is clear: friction reduction. By streamlining the funnel from initial product discovery to final checkout, Google aims to capture the entire consumer journey within its own ecosystem. This pivot transforms Google Search and the Gemini AI suite from mere information discovery tools into comprehensive transactional platforms. The move coincides with a broader intensification of the AI arms race; Shopify, a critical node in this new alliance, is simultaneously deepening integrations with Microsoft Copilot, signaling that the battle for the future of retail is being fought through platform interoperability and AI utility.

For the retail sector, this shift presents a double-edged sword. While merchants gain a powerful new channel to reach consumers via AI-driven predictive recommendations, it significantly heightens "platform risk" and dependency on Google’s proprietary algorithms. Businesses must now pivot their search engine optimization (SEO) strategies toward AI-native optimization. While the UCP is currently centered on the U.S. market, Google’s history of setting de facto industry standards suggests this framework will soon dictate global trade norms. Emerging markets, including Vietnam, should anticipate a shift in e-commerce dynamics as these AI-centric protocols become the global benchmark for digital trade.

The implementation of the UCP Protocol represents a significant shift for Vietnamese-American small business owners, particularly those building their brands on platforms like Shopify and Etsy. This new standard allows AI agents to automatically discover and recommend their products to a global audience that might otherwise be out of reach. For example, a customer who isn't intentionally searching for Vietnamese handicrafts could still be introduced to them by an AI that recognizes a match with their personal tastes. But this new frontier requires agility. To avoid falling behind the competition, entrepreneurs will need to adapt quickly—mastering the art of catalog optimization and leveraging Google’s latest AI-powered advertising tools. Navigating this transition will demand a focused investment in both time and new technical skill sets.