Retail giants such as Walmart and Carrefour are relying on Google’s shopping agents
Both Walmart and Carrefour announced this week that they are joining Google’s new standard for agentic commerce, the Universal Commerce Protocol (UPC). The technology allows consumers to purchase products directly on Google’s Gemini AI platform, for example, without having to switch to the retailer’s website. At the NRF conference, which took place in New York City this week, Google Cloud has now also unveiled its own agentic solution for retail and hospitality under the name Gemini Enterprise for Customer Experience (CX). Kroger is one of the first users of this solution.
The new open standard for agent-based commerce is designed to work throughout the entire shopping process, from product search to checkout and post-purchase customer service. UCP creates a common language for agents and systems so they can interact across consumer platforms, businesses and payment providers. The solution is designed for cross-industry use and is compatible with many existing industry protocols.
Google developed UCP in collaboration with industry leaders such as Shopify, Etsy, Wayfair, Target and Walmart. More than 20 other companies from the ecosystem support the protocol, including retailers such as Best Buy, Flipkart, Macy’s, The Home Depot and Zalando, as well as major payment processors including Mastercard, Visa, American Express, Adyen and Stripe.
Virtual assistant helps with purchasing decisions
Initially, the solution allows consumers to purchase directly from participating retailers from product suggestions in the Gemini app or in Google Search’s AI mode, without being redirected to their website. They can pay using Google Pay and, in future, PayPal. A virtual shopping assistant, dubbed Business Agent, is also already available. This can answer product questions and help customers with their selection. Participating retailers can train it using their own data. Google plans to develop further functions in collaboration with its industry partners soon.
Carrefour is the only European food retailer to have introduced Google’s UPC so far. The French group sees itself as a leader in this innovative technology. It wants to use it to make online shopping easier and redesign how it interacts with its customers, primarily through direct purchase of Carrefour products using Google AI tools.
Google offers pre-built agents
Google’s own solution, Gemini Enterprise for Customer Experience (CX), which the company presented at the NRF conference last Sunday in New York City, provides ready-made and configurable agents that, according to the provider, can be implemented within a few days. They are designed to accompany the entire customer process, from product search to after-sales support.
The tool is designed to act like an expert, advising customers based on their specific requirements in terms of product features and available budget. The agent can process speech, photos, videos and even handwritten notes. When making product suggestions, it considers the customer’s previous purchasing behaviour and, with the buyer’s consent, also completes the checkout process. Google names Kroger, Lowe’s and Woolworths as the first retailers to opt for this solution.
Retailers may face loss of control
However, relying on Google’s AI agents offers not only opportunities but also considerable risks. Retail companies that choose this path are abandoning ownership of significant parts of customer communication. In the long term, they might lose control over their customer relationships.
In line with its business model, the Google platform will position offers more favourably if the provider pays accordingly. It is to be expected that, in the long term, mostly large and financially strong retailers will be able to benefit from the technology. Overall, this could further drive monopolisation in online retail.
