Google has announced a significant leap in AI-driven commerce with the introduction of its Universal Commerce Protocol (UCP), an open standard designed to facilitate 'agentic commerce' – where AI agents can manage the entire shopping journey from discovery to purchase. Unveiled at the National Retail Federation (NRF) 2026 conference, this protocol aims to establish a common language for AI agents and commerce systems, reducing the need for custom integrations and allowing seamless transactions across various platforms. UCP will power new checkout capabilities within Google Search's AI Mode and the Gemini app, enabling users to complete purchases directly within Google's interfaces using Google Pay and saved details from Google Wallet. PayPal has also announced its support for UCP, indicating that its services will soon be available as a payment option. This initiative builds upon Google's earlier Agent Payments Protocol (AP2), launched in September 2025, which focused on secure and auditable purchases by AI agents and garnered support from numerous financial institutions. In conjunction with UCP, Google is introducing 'Business Agents,' branded AI assistants that allow shoppers to chat directly with retailers within Search results. These agents function as virtual sales associates, answering product questions in a brand's voice and, eventually, facilitating direct purchases. Prominent retailers, including Walmart, Shopify, Etsy, Wayfair, Target, Lowe's, Michael's, Poshmark, and Reebok, are among the early adopters and collaborators in this new agentic shopping ecosystem. Additionally, Google is piloting 'Direct Offers,' a new ad format in AI Mode that allows advertisers to present exclusive discounts to shoppers nearing a purchase decision. While these AI-assisted shopping features are initially rolling out to eligible U.S. retailers and users, Google has stated plans for global expansion in the coming months, promising features like loyalty rewards and custom shopping experiences. This move positions Google centrally in the evolving landscape of AI-powered retail, where major tech companies are competing to offer integrated discovery-to-checkout experiences.