Google Pushes AI Deeper Into Retail With New Commerce Protocol

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Search giant Google on Sunday unveiled a set of AI tools for retailers, along with a new open commerce standard designed to let consumers discover and buy products through conversational interfaces rather than traditional search results.

The announcements, made at the National Retail Federation’s (NRF’s) annual conference, signal Google’s push to embed AI agents deeper into the retail value chain.

At the NRF event, Google Chief Executive Sundar Pichai outlined how the company is positioning its AI tools and platforms to help retailers navigate the shift.

The strategy spans three areas: a new industry protocol aimed at what Google calls “agentic commerce,” a customer experience platform built around AI agents, and an expansion of drone-based delivery through Wing. Together, they point to how large technology platforms are extending beyond search and advertising into transaction infrastructure and fulfillment.

“Retail is entering a really dynamic moment,” Pichai said, pointing to rapid advances in artificial intelligence and the scale at which retailers are already relying on Google’s AI infrastructure.

According to the company, retail-related API usage rose sharply over the past year, with tokens processed increasing more than eleven-fold between December 2024 and December 2025.

Google framed much of its retail push around changing consumer behavior. Product discovery, once dominated by keyword-based search, is increasingly shifting toward conversational interfaces powered by generative AI.

Search remains a central entry point for shopping, the company said, supported by its Shopping Graph, a database that tracks product listings, prices, inventory and reviews in near real time. 

The Shopping Graph now contains more than 50 billion listings, with billions refreshed every hour. Last year, the dataset was integrated into the Gemini app, allowing users to ask shopping-related questions in a conversational format.

Google said its new AI Mode in Search is designed to reduce the effort involved in browsing and comparing products by narrowing options through dialogue rather than pages of links.

One of the most consequential announcements was the introduction of the Universal Commerce Protocol, which Google described as a foundational layer for agent-driven shopping experiences.

The protocol is designed to allow AI agents, platforms and retailers’ systems to communicate across different stages of the commerce journey, from discovery to checkout.

Google said the protocol is open and platform-agnostic, and has been developed with partners including Shopify, Etsy, Wayfair, Target and Walmart. More than 20 other companies have endorsed it, according to Google.

The protocol is also compatible with existing frameworks such as Agent2Agent, the Agent Payments Protocol and the Model Context Protocol, an attempt to avoid fragmenting an already crowded standards landscape.

As part of the rollout, Google said the protocol will eventually enable native checkout on its own surfaces, including AI Mode in Search and the Gemini app. 

Users would be able to complete purchases without leaving the conversational interface, while retailers remain the merchant of record and retain control of customer relationships.

AI Agents Inside Retail Operations

Beyond consumer-facing shopping, Google is also targeting how retailers operate internally. 

The company announced a preview of Gemini Enterprise for Customer Experience, a platform designed to support AI agents across search, commerce and customer service.

The platform supports use cases ranging from shopping assistants and support bots to agent-powered search and merchandising tools. 

Google said early users include The Home Depot and McDonald’s, while retailers such as Kroger are testing shopping agents embedded directly into their own apps.

It said the platform is built on open standards and integrates with the Universal Commerce Protocol.

The company also announced an expansion of Wing, its drone delivery unit operated under Alphabet. Wing will begin deliveries in Houston next week, with additional launches planned in Orlando, Tampa and Charlotte.

According to Google, Wing and Walmart doubled deliveries in existing markets in 2025, underscoring continued interest in alternative last-mile delivery models as logistics costs rise.