Alphabet-owned Google (GOOGL) announced the launch of Universal Commerce Protocol (UCP), a new ecosystem designed for agentic AI (artificial intelligence)-based shopping that was built together with major U.S. retailers like Target (TGT), Walmart (WMT), Etsy (ETSY), Wayfair (W), and Shopify (SHOP).
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At the National Retail Federation’s (NRF) annual show, CEO Sundar Pichai also announced the launch of “Gemini Enterprise for Customer Experience,” a platform specifically designed for agentic retail. Pichai highlighted that partners such as The Home Depot (HD) and McDonald’s (MCD) are already leveraging AI agents to enhance customer service.
The CEO also announced that Google is expanding the availability of its Wing drone delivery app to another 150 Walmart stores. The company will begin deliveries in Houston next week, with further expansion planned for Orlando, Tampa, Charlotte, and additional cities.
Google Teams up with Major Retailers to Advance AI in Commerce
Pichai said that the UCP was developed to meet the needs of retailers and customers, supporting several tasks, ranging from product discovery to the decision to buy a product and beyond. Retail giant Walmart highlighted that the UCP combines the intelligence of Google’s Gemini with its namesake brand’s business and Sam’s Club’s offerings to make shopping more intuitive.
“The transition from traditional web or app search to agent-led commerce represents the next great evolution in retail,” said John Furner, president and CEO of Walmart U.S. and incoming president and CEO of Walmart.
Meanwhile, Pichai noted that UCP is compatible with existing industry protocols like Agent2Agent, the Agent Payments Protocol, and Model Context Protocol. Google aims to make UCP an industry standard for retailers’ AI agents and systems across product discovery, purchase, and after-purchase support.
Google Faces Competition in AI-Powered Agentic Commerce
It is worth noting that Google is competing with OpenAI, Perplexity, and e-commerce giant Amazon (AMZN) in the generative AI market to attract more consumers to its apps. Notably, OpenAI’s Agentic Commerce Protocol, built in collaboration with Stripe, could compete with Google’s UCP. In October 2025, OpenAI struck a deal with Walmart to launch the Instant Checkout feature in ChatGPT, which allows buyers to purchase items without leaving the chatbot.
Meanwhile, in May 2025, Perplexity announced that it is collaborating with fintech giant PayPal (PYPL) to enable users to buy products and book travel and concert tickets directly through an AI chatbot, without leaving the platform. Also, Amazon rolled out Shop Direct, a feature that allows customers to browse offerings from other brands’ sites via Amazon. An AI agent called Buy for Me, available for some items, allows the user to buy products from other sites on the user’s behalf.
Is GOOGL Stock a Buy, Sell, or Hold?
Currently, Wall Street has a Strong Buy consensus rating on Alphabet stock based on 27 Buys and six Holds. The average GOOGL stock price target of $337.87 indicates about 3% upside potential.
