Google Launches UCP to Power AI-Led Buying and Selling

Google has unveiled the Universal Commerce Protocol (UCP), a new open standard aimed at reshaping digital commerce in the age of artificial intelligence. The initiative is designed to help retailers connect more effectively with consumers who increasingly rely on AI tools for product discovery, comparison, and purchasing decisions.

What the Universal Commerce Protocol does

UCP enables retailers to create and surface relevant offers directly within their Google campaign settings. Powered by agentic AI, Google determines when and where an offer should be displayed based on shopper intent and context. The protocol is built to operate across the full commerce lifecycle, covering discovery, purchase, and post-transaction support, creating a unified framework for AI-driven retail interactions.

AI checkout and “Direct Offers” pilot

As part of UCP, Google is introducing a new checkout capability for eligible product listings shown in AI Mode on Search and within the Gemini app. This allows shoppers to complete purchases from selected retailers while researching products on Google. In parallel, Google is piloting “Direct Offers” under Google Ads, targeting consumers who use AI for product discovery and prioritise value. The pilot currently focuses on discounts, with plans to expand to bundles, free shipping, and other value-added attributes.

Standardising agentic commerce systems

According to Vidhya Srinivasan, UCP establishes a shared language that allows AI agents, business systems, and payment providers to work together seamlessly. Instead of requiring custom integrations for each platform, the protocol enables broad interoperability. UCP complements existing frameworks such as Agent2Agent (A2A), Agent Payments Protocol (AP2), and Model Context Protocol (MCP), strengthening the wider agentic AI ecosystem.

Imporatnt Facts for Exams

• Agentic AI systems can autonomously act on behalf of users.
• Universal Commerce Protocol is an open standard for AI-driven commerce.
• Google Gemini integrates AI-based search and shopping features.
• Open digital protocols improve interoperability and reduce vendor lock-in.

Industry collaboration and Business Agent feature

Google said UCP was co-developed with major retailers such as Shopify, Target, and Walmart, and endorsed by ecosystem partners including American Express, Flipkart, and Mastercard. Alongside this, Google is rolling out Business Agent on Search, enabling shoppers to chat directly with brands. Designed to function like a virtual sales associate, the feature answers product queries in a brand’s voice, helping retailers engage consumers during critical buying moments and drive conversions.