In a significant move for the retail sector, Google has launched a suite of tools known as Gemini Enterprise for Customer Experience. This initiative aims to empower retailers with AI-driven shopping assistants and customer support systems. Major players such as Kroger, Lowe”s, and Papa Johns are already trialing these AI agents to streamline product discovery, comparisons, and order placements.
The introduction of the Universal Commerce Protocol (UCP) marks a notable advancement in creating an open-source standard for AI shopping agents. Developed with input from industry leaders like Shopify, Etsy, Wayfair, and Target, UCP facilitates a seamless shopping journey from product discovery to payment, enabling retailers to tailor their own AI solutions rather than depending on external chatbot services.
Kroger, for example, has integrated a shopping agent into its mobile application. This tool enhances the shopping experience by allowing users to compare grocery items and customize their selections based on personal preferences and lifestyle factors, such as meal planning and budget considerations. Yael Cosset, Kroger”s Chief Digital Officer, emphasized the urgency of adopting AI solutions to avoid falling behind competitors.
The flexibility provided by UCP allows businesses to selectively implement features that align with their needs. According to Vidhya Srinivasan, Vice President of Google Ads and Commerce, having a standardized protocol is crucial for scaling AI capabilities in retail. This protocol will soon enhance Google”s AI Mode and Gemini App, enabling payments through Google Wallet and other platforms like PayPal in the future.
By creating their own AI agents, retailers can maintain greater control over customer interactions, reducing the risk of losing customer loyalty associated with third-party solutions. Notably, Lauren Wiener from the Boston Consulting Group has highlighted a trend where retailers are shifting towards developing internal capabilities instead of relying solely on external technologies.
Competition in the AI commerce space is heating up, with OpenAI and Microsoft also launching similar features for their platforms. Furthermore, the retail AI market is projected to grow significantly, with estimates suggesting it could reach between $3 trillion and $5 trillion globally by 2030.
In practical applications, Lowe”s has adopted Google”s shopping agent for its virtual assistant, Mylow, which reportedly has more than doubled the company”s conversion rate. Meanwhile, Papa Johns is testing an AI food ordering agent capable of determining the optimal number of pizzas required based on user inputs.
Despite the rapid advancements in AI technology, traditional shopping methods remain prevalent, as noted by Papa Johns” Chief Digital Officer, Kevin Vasconi, who remarked on the continued reliance of customers on conventional ordering methods.
Google”s launch of AI shopping agents signifies a pivotal moment in the integration of artificial intelligence into retail, promising to transform customer experiences and redefine operational efficiency within the industry.
