Google Announces AI-Powered Updates for Retailers

12 Jan 2026

As online shopping shifts toward AI-assisted discovery, Google is introducing new tools to help retailers adapt to conversational commerce and boost sales. Announced at the National Retail Federation conference, these features aim to replace keyword-based search with more natural, AI-driven shopping conversations.

Google’s key launch is Gemini Enterprise for Customer Experience, which allows retailers to create their own AI agents powered by Gemini. These agents can guide customers throughout the entire shopping journey — from product discovery to post-purchase support — and go beyond basic chatbots by planning, reasoning, and acting autonomously.

Retailers can deploy these agents on their websites, while Google’s Business Agent enables shoppers to interact with brands directly through Google Search. Google is also rolling out the Universal Commerce Protocol (UCP), which allows users to discover and purchase products within a single AI chat, using Google Pay or PayPal, reducing friction and cart abandonment.

Initially launching in the U.S., these tools signal Google’s push toward agent-led commerce, making AI-powered shopping interactions a new standard that retailers may need to adopt to stay competitive.