Google Launches Universal Commerce Protocol to Power AI-Driven Retail

Open Standard UCP Aims to Reshape Digital Commerce with Agentic AI

Google has introduced the Universal Commerce Protocol (UCP), a new open standard designed to redefine digital commerce in the artificial intelligence era. The initiative seeks to empower retailers to better connect with consumers who are increasingly using AI agents for product discovery, price comparison, and making purchase decisions.

What the Universal Commerce Protocol Does
UCP allows retailers to create and manage promotional offers directly within their Google advertising campaigns. Leveraging agentic AI, Google's systems intelligently determine the optimal context and moment to surface these offers to shoppers based on real-time intent. The protocol is architected to support the entire commerce journey—from discovery and purchase to post-transaction support—establishing a cohesive framework for AI-facilitated retail.

AI Checkout and “Direct Offers” Pilot
As a key component of UCP, Google is launching a new checkout feature for eligible product listings appearing in AI Mode on Search and within the Gemini app. This enables users to complete purchases directly from select retailers while browsing products on Google. Concurrently, Google is piloting a “Direct Offers” program via Google Ads, targeting value-conscious consumers who use AI for product research. The initial phase focuses on discounts, with future expansions planned for bundles, free shipping, and other value propositions.

Standardising Agentic Commerce Systems
Vidhya Srinivasan of Google explained that UCP creates a common language for seamless interaction between AI agents, business platforms, and payment providers. By providing broad interoperability, it reduces the need for custom, one-off integrations. UCP is designed to complement and enhance existing agentic AI frameworks like Agent2Agent (A2A), the Agent Payments Protocol (AP2), and the Model Context Protocol (MCP).

Industry Collaboration and Business Agent Feature
Google developed UCP in collaboration with leading retailers including Shopify, Target, and Walmart, with endorsements from partners such as American Express, Flipkart, and Mastercard. In a related move, Google is introducing the “Business Agent” feature on Search, which lets shoppers engage in direct, conversational chat with brands. Functioning as a virtual sales associate, it answers product questions in the brand's unique voice, helping retailers capture consumer interest at decisive moments in the shopping journey.

Exam-Focused Points:

• The  Universal Commerce Protocol (UCP)  is an  open standard  for AI-driven commerce.

• Agentic AI  refers to systems that can autonomously perform tasks and make decisions on a user's behalf.

• The protocol integrates with  Google Gemini  and  AI Search  for seamless shopping.

• Open digital protocols  like UCP enhance  interoperability  and reduce  vendor lock-in .

• It supports the full commerce lifecycle:  discovery, purchase, and post-transaction .