Google has announced a major expansion of commerce capabilities in Search with the rollout of AI Mode Checkout, a new system that allows users to complete purchases directly within Google’s AI-powered search experience.
Alongside checkout, Google also introduced Business Agent, a branded AI chat feature embedded directly in Search results, and Direct Offers, a new advertising pilot designed for AI Mode.
Together, these updates signal a significant shift toward what Google calls agentic commerce, where discovery, assistance, and transaction happen in a single interface.
AI Mode Checkout Keeps Shoppers on Google
With AI Mode Checkout, users can research products, compare options, and complete purchases without leaving Google surfaces.
Retailers remain the seller of record, but checkout is handled directly within Google Search and the Gemini app. Payments are completed using Google Pay, with shipping and billing details pulled from Google Wallet. Support for PayPal is expected in a future update.
The feature initially launches with eligible U.S. retailers, with plans to expand globally.
Universal Commerce Protocol Enables Agentic Commerce
AI Mode Checkout is powered by Google’s newly announced Universal Commerce Protocol (UCP)—an open standard designed to support transactions initiated by AI agents.
Google developed UCP in collaboration with major ecommerce platforms and retailers, including Shopify, Etsy, Wayfair, Target, and Walmart. Additional endorsements came from payments and commerce providers such as Visa, Mastercard, American Express, Stripe, Adyen, Best Buy, and The Home Depot.
UCP is intended to make it easier for retailers to participate in AI-driven purchasing experiences while maintaining control over fulfillment, pricing, and customer relationships.
Business Agent Brings Branded AI Chat to Search Results
Google also announced Business Agent, a new feature that places branded AI chat directly within Search results.
Designed to function as a virtual sales associate, Business Agent allows users to ask product questions and receive answers in a brand-specific voice. Retailers can activate and customize the experience through Google Merchant Center.
At launch, participating brands include Lowe’s, Michael’s, Poshmark, Reebok, and others, with availability initially limited to U.S. retailers.
Google plans to expand Business Agent capabilities over time, including training agents on retailer-provided data, surfacing product offers, and enabling purchases directly within the chat interface.
Direct Offers Introduces Ads Into AI Mode
Google is also testing Direct Offers, a new ad format built specifically for AI Mode.
The pilot allows advertisers to surface exclusive discounts when users are actively researching products. For example, a shopper searching for rugs could see a limited-time percentage discount from participating retailers.
Advertisers configure offers within their campaign settings, while Google determines when and where they appear in AI Mode results. Early participants include Petco, e.l.f. Cosmetics, Samsonite, Rugs USA, and select Shopify merchants.
What This Means for Ecommerce and Marketers
AI Mode Checkout changes how value flows through search.
Shoppers can now move from discovery to purchase without ever visiting a retailer’s website. While the transaction still benefits the merchant, traditional site traffic may decrease for participating brands.
For retailers, participation in UCP offers access to high-intent buyers at the moment of decision. Those that opt out may find it harder to compete as user expectations shift toward instant, in-search purchasing experiences.
From a marketing perspective, this raises new questions around attribution, conversion tracking, and the role of on-site UX in a world where checkout increasingly happens on third-party platforms.
What’s Coming Next
AI Mode Checkout begins rolling out to eligible U.S. retailers. Business Agent launches January 12, while Direct Offers remains in limited pilot testing.
Google also confirmed it is developing new Merchant Center data attributes designed specifically for discovery in AI Mode, Gemini, and Business Agent. These attributes will roll out with a small group of retailers before broader availability.
As AI-driven commerce matures, Google is positioning Search not just as a discovery engine—but as a complete shopping destination.
