Battle of the Agents: Google, OpenAI, and Visa Clash in the Future of AI Commerce

The Evolution of AI-Enabled Commerce: A Look at Agentic Commerce Protocols

When Walmart and OpenAI made headlines with their collaboration to integrate ChatGPT into the retail giant’s platform, the focus shifted to the potential of AI agents making purchases on behalf of users. However, the challenge lies in ensuring secure transactions, a crucial aspect of AI-enabled commerce.

Chat platforms like ChatGPT are gaining traction as they replace traditional browsers and excel in providing users with relevant information. Users now rely on these platforms to find products and make online purchases seamlessly.

Despite the advancements in AI technology, the lack of trust and security infrastructure remains a significant hurdle in allowing AI agents to handle financial transactions. To enable agents to complete purchases, a common language must be established among various stakeholders, including model and agent providers, banks, merchants, and consumers.

Recent developments have seen the emergence of three competing agentic commerce standards: Google’s Agent Pay Protocol (AP2), OpenAI and Stripe’s Agentic Commerce Protocol (ACP), and Visa’s Trusted Agent Protocol (TAP). These protocols aim to instill trust in AI agents, assuring banks and customers of the safety of their transactions. However, the proliferation of multiple standards may lead to fragmented ecosystems, posing challenges for interoperability.

Understanding the Differences

While it is common for industry players to propose multiple standards before converging on a unified approach, the rapid pace of innovation in enterprise has accelerated this process. Each protocol, whether AP2, TAP, or ACP, focuses on establishing authorization through cryptographic proofs. While AP2 and TAP utilize digital keys and contracts for authentication, ACP acts as a mediator between the agent and the merchant, streamlining the transaction process.

Challenges of Walled Gardens

Despite the intention for these protocols to work across various platforms, the risk of creating walled gardens looms large. Competing protocols could lead to platform-specific restrictions, hindering interoperability and forcing enterprises to align with a particular standard. This poses a dilemma for organizations seeking seamless integration and trust in agentic payment systems.

The coexistence of multiple protocol proposals underscores the complexity of enabling shopping agents in the current landscape. While enterprises experiment with different standards, the ultimate goal is to amalgamate the best features from each protocol into a unified agentic commerce standard.

Looking Towards the Future

As the industry navigates through the multitude of protocol proposals, the role of open-source solutions becomes paramount in consolidating diverse approaches. The collaborative efforts of various stakeholders will drive the evolution of agentic commerce protocols, potentially leading to a cohesive and efficient system in the future.

In the coming weeks, the industry awaits further developments to see if additional players will introduce competing protocols. With the potential for large retailers and chat platforms to influence the landscape, the evolution of agentic commerce remains a dynamic and evolving space.