Google’s Entry into Agentic Commerce: A Challenge to Amazon’s Retail Reign

Google’s Latest Push into AI-Powered Shopping

Google is venturing into AI-powered shopping with the introduction of Universal Commerce Protocol (UCP). This new open technical standard is designed to enable shoppers to purchase products directly through AI chatbots and search interfaces. UCP has garnered support from major retailers and payment providers such as Walmart, Target, Shopify, and Etsy.

Interestingly, one notable absence from the list of backers in the recent announcement was Amazon. Amazon has long been a dominant force in the online shopping infrastructure, but UCP presents an alternative route that could potentially divert shoppers to competitors during the crucial stage of product discovery.

Unveiled at the National Retail Federation conference in New York City, UCP is positioned by Google as the foundation for “agentic commerce,” a burgeoning concept where AI agents assist shoppers in completing complex tasks on their behalf.

Google CEO Sundar Pichai emphasized the increasing role of AI agents in shaping the future of shopping, highlighting the importance of streamlining the integration process for retailers across various AI platforms. UCP aims to tackle this challenge by establishing a shared “language” that enables AI agents to securely access product information, pricing, availability, promotions, loyalty programs, and checkout processes.

Industry Response to UCP and Its Potential Impact on Amazon

Industry analysts have weighed in on UCP and its implications for Amazon’s dominance in online retail. While UCP may not directly threaten Amazon’s logistics stronghold, it presents a new avenue for product discovery that doesn’t necessitate starting within Amazon’s app or website.

Maju Kuruvilla, CEO of agentic commerce startup Spangle, noted that UCP enhances the discovery process without undermining Amazon’s core advantages in terms of price, selection, and convenience. The protocol serves as an additional channel for consumers to explore products and make purchases.

The rise of AI-driven shopping behavior is already evident, with a report from Adobe Digital Insights revealing a 693% year-over-year surge in AI-driven traffic to retail sites during the 2025 holiday season. AI-referred visitors exhibited higher conversion rates and spent more time on websites compared to non-AI traffic.

Despite the growth in AI-powered traffic and checkout collaborations, analysts caution against overestimating the speed of adoption. OpenAI research highlighted the challenge of relevance in AI-powered shopping results, indicating that there is still room for improvement in product discovery, curation, personalization, and recommendations.

The Future of Agentic Commerce and Amazon’s Position

While the potential for agentic commerce to reshape the retail landscape is acknowledged, some experts believe Amazon’s position is secure due to its value proposition of selection, convenience, and pricing. Scott Devitt, an analyst at Wedbush, emphasized that AI will impact retail but won’t fundamentally alter these core elements.

Sucharita Kodali, a retail industry analyst at Forrester, speculated that an agentic commerce boom could paradoxically strengthen Amazon’s position, potentially leading to lucrative partnerships with eventual winners in the space.

Amazon has been exploring its own AI-driven shopping features, including the Rufus assistant and the “Buy for Me” initiative. While CEO Andy Jassy acknowledged the potential of agentic commerce, he highlighted the need to enhance personalization and accuracy in AI-based shopping experiences.

In a legal move, Amazon sued Perplexity to prevent the startup from utilizing its AI browser agent for purchases on the Amazon marketplace.

Google’s Rollout of UCP and Industry Trends

Google announced that shoppers using Google’s AI Mode in Search or the Gemini app will soon encounter buy buttons on eligible products from participating U.S. retailers. This feature allows users to check out using payment information stored in Google Wallet, with PayPal support slated for future integration.

Google’s initiative aligns with similar efforts from tech giants like Microsoft and OpenAI, who have introduced Copilot Checkout and the Agentic Commerce Protocol (ACP), respectively, to facilitate direct transactions within AI interfaces.

Emily Pfeiffer, a principal analyst at Forrester, commended the push for industry standards but cautioned that it is still early in the process. She emphasized the importance of enhancing shopping experiences to drive adoption of AI-powered commerce.

Overall, the evolution of agentic commerce and the emergence of standards like UCP signal a shift in the retail landscape, with implications for major players like Amazon and the broader industry.