Google Unveils AI Checkout Mode

Google has unveiled a major update to its shopping and search experience by introducing new AI-driven commerce tools. These changes are designed to allow users to research products, interact with brands, and complete purchases without leaving Google’s platforms.

The announcement centres on Google’s AI Mode, where users can now move from product discovery to checkout in one seamless journey. This marks a shift away from traditional search behaviour, where shoppers typically click through to a retailer’s website to complete a purchase.

With the new setup, users can buy products directly from eligible listings shown in Search. While the checkout process happens on Google, the retailer remains responsible for fulfilment, customer service, and order management.

To make this possible, Google has launched the Universal Commerce Protocol, also known as UCP. This open standard provides the technical framework that enables AI-powered checkout across Google’s services.

Google describes UCP as the foundation for “agentic commerce”, where AI systems can assist with decision-making and transactions. The protocol is designed to work across AI Mode in Search as well as within the Gemini app.

The development of UCP involved close collaboration with major ecommerce platforms and retailers. Early partners include Shopify, Etsy, Wayfair, Target and Walmart, helping to shape the protocol from both a technical and commercial perspective.

In addition to these partners, more than 20 companies across payments and retail have endorsed the protocol. These include Visa, Mastercard, Stripe, American Express, Best Buy and The Home Depot, highlighting strong industry backing.

For shoppers, the checkout experience will rely on Google Pay. Payment methods and delivery details stored in Google Wallet will be used to streamline purchases, making transactions faster and more convenient.

Google has also confirmed that PayPal support is planned, though it will be introduced at a later stage. Initially, AI Mode checkout will only be available to selected retailers in the United States.

Despite the limited launch, Google has made it clear that international expansion is part of its long-term plan. This suggests that retailers in other markets, including the UK, may gain access in the future.

Alongside checkout, Google introduced a new feature called Business Agent. This tool places branded AI chat directly within Search results, allowing users to communicate with retailers while browsing products.

Business Agent acts as a virtual sales assistant, responding in the brand’s own voice. It can answer product questions, provide recommendations, and help shoppers understand options without needing to visit a separate website.

The feature is set to go live on 12 January, with early participation from retailers such as Lowe’s, Michael’s, Poshmark and Reebok. Eligible businesses can activate and manage the tool through Google Merchant Center.

Google also announced a new advertising experiment called Direct Offers. This pilot allows advertisers to display exclusive discounts within AI Mode when users show strong buying intent.

For example, a shopper searching for home furnishings may see a limited-time discount from a participating retailer. Retailers create these offers within their ad campaigns, while Google determines when and where they appear.

Taken together, these updates signal a major change in how ecommerce works within search. As Google continues to add new Merchant Center data attributes and expand AI Mode, retailers may need to rethink how they approach visibility, traffic, and conversions in an increasingly AI-led search environment.