Google Joins AI Commerce Race with In-Search Checkout
Google's universal commerce protocol enables direct checkout in AI search results, partnering with Shopify, Target, Walmart. Asia expansion planned as SEA e-commerce hits $230B-$370B by 2030.
Google has introduced a "universal commerce protocol" that enables consumers to complete purchases directly within AI-powered search results without visiting retailer websites, joining OpenAI and Microsoft in the race to integrate commerce into AI platforms. The system, announced at the National Retail Federation conference, is currently available to U.S. retailers with global expansion planned in coming months.
The protocol was developed in partnership with major retailers including Shopify, Etsy, Wayfair, Target, and Walmart, with support from payment providers American Express and Mastercard. Early brand participants include Petco, Elf Cosmetics, and Samsonite.
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Direct Checkout and Loyalty Integration
The system, called Direct Offers, allows brands to configure exclusive discounts and promotions within Google's Merchant Center campaign settings. Google's AI then determines when to display these offers to consumers based on search context. According to Vidhya Srinivasan, a Google executive, the program will expand beyond discounts to include product bundles and free shipping options.
The protocol integrates loyalty programs directly into the checkout experience. For example, consumers shopping for Monos suitcases can see "new member" pricing and add complementary items like packing cubes before completing their purchase, all within the AI search interface.
Woolworths Group in Australia became the first Asia-Pacific retailer to adopt Google's Gemini Enterprise for Customer Experience, evolving its AI assistant "Olive" to provide personalized shopping recommendations and meal planning features.
Southeast Asia Market Implications
The development arrives as Southeast Asia's e-commerce market is projected to reach between $230 billion and $370 billion in gross merchandise value by 2025 to 2030, according to Google, Temasek, and Bain research. The region saw 15% year-over-year growth in e-commerce in 2025.
Regional platforms are already testing similar AI shopping tools. Shopee piloted AI Max for Search in Singapore and Malaysia, achieving double the order volume and 49% higher return on investment through AI-driven search term matching. The pilot also delivered 23% lower cost per order compared to standard search campaigns.
In Indonesia, Google Ads AI tools have driven 38% lower cost per acquisition for e-commerce advertisers. Cart abandonment campaigns using AI geographic bidding showed 72% higher conversions across Southeast Asia, with 41% lower advertising costs for campaigns targeting consumers near physical stores.
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Technical Requirements and Industry Response
The protocol requires retailers to optimize product listings in Google Merchant Center with AI-specific attributes, including sustainability tags and usage scenarios, to improve visibility in AI search results. Google has released an open-source reference implementation in Python to reduce integration barriers for developers.
Lucio Ribeiro, Chief AI and Innovation Officer at TBWA Australia, described the shift as "a new AI moment of truth where discovery and purchase start to collapse into the same interaction." He emphasized that advertisers must treat AI-enabled search as "a new, dynamic channel of intent" rather than traditional search.
Marc Lomas, Managing Director of Commerce at WPP Media, called it "the end of the 'browse and hope' era," predicting a shift toward what he termed a "delegator economy" where consumers entrust purchasing decisions to AI agents. "Brands that treat their product feeds as frontline marketing assets will win zero customer-acquisition cost in this new ecosystem," Lomas said.
Adobe reported 693% year-over-year growth in AI-generated traffic to sellers during the 2025 holiday season, signaling rising consumer adoption of AI shopping tools.
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