Google Launches AI Agents to Revolutionize Retail Shopping

With AI tools for merchants, the search engine behemoth is entering the agentic commerce space for the first time. Major businesses are already getting ready for the AI agent-based shopping trend.

Google Launches AI Tools for Retailers

In an effort to make it simpler for marketers to connect with consumers who are using the technology, Google launched a suite of tools for stores that assist them in using AI agents.

What Alphabet-owned Google refers to as Gemini Enterprise for Customer Experience includes the new retail AI bots that assist customers in finding what they want, provide customer service, and allow them to place restaurant orders.

Early Adoption by Major Retailers

To help be ready for the impending surge of AI-assisted buying and ordering, major businesses including grocery store Kroger, pizza chain Papa Johns, and home improvement behemoth Lowe’s claim to already be using Google’s capabilities.

According to Yael Cosset, the company’s chief digital officer and executive vice president, Kroger, located in Cincinnati, is testing Google’s shopping agent, which assists consumers in comparing grocery goods, customizes their shopping experience, and even handle buying. According to Cosset, “if you are not already far into [AI agents], you are definitely establishing a competitive barrier or disadvantage.”

According to Cosset, the shopping agent, which is accessible via the Kroger mobile app, is able to comprehend context and purpose, such as a customer’s time limitations and meal plans, and combines that with consumer data that Kroger already possesses, such as price sensitivity, taste, and brand loyalty.

Google’s First Foray into Agentic Commerce

As the emerging agentic commerce sector takes form, Google’s new AI tools represent the company’s first venture into AI-agent based store shopping.

A rising number of consumers are giving up control over what and how they make purchases online using AI agents, which are autonomous bots that may act on behalf of people. Although agent-based shopping is not currently the most common method of making purchases, people are beginning to use AI chatbots and services as personal shopping assistants or even ask AI agents to complete their purchases.

Competition from OpenAI and Microsoft

OpenAI’s Instant Checkout function, which allows customers to make purchases directly via its chatbot ChatGPT, launched the competition among tech companies to get ahead of this change last autumn. Microsoft revealed a similar checkout function for its Copilot chatbot in January.

Walmart said shortly after OpenAI’s launch last year that it will collaborate with OpenAI to enable customers to purchase its goods using ChatGPT.

Control vs Third-Party Chatbots

However, any merchant that allows its items to be directly shoppable via AI chatbots such as ChatGPT, Copilot, or Google’s Gemini runs the risk of losing customers and losing out on potential for add-on sales. Additionally, it may reduce ad income.

On the other hand, merchants have greater control over how AI is used to display and deliver their items when they create their own AI agents and shopping channels.

According to Lauren Wiener, a worldwide expert in marketing and customer development at Boston Consulting Group, “there is a market change across the spectrum of retailers that are investing in their own capabilities rather than simply depending on third-parties.”

Support from Google’s AI Tools

According to Ed Anderson, a tech researcher at market research and consulting company Gartner, Google’s new tools are designed to assist merchants overcome the difficulties they may encounter while developing their own AI agents. “The implementation of the technology is the true problem here,” he said. “Retailers do not have to start from scratch thanks to these announcements.”

Implementation by Lowe’s, Kroger & Papa Johns

According to Seemantini Godbole, the company’s chief digital and information officer, Lowe’s in Mooresville, North Carolina, uses Google’s shopping agent as the back-end technology for its own virtual shopping assistant, known as Mylow. According to Lowe’s, the company’s discussion rate more than doubles when customers interact with Mylow online.

However, according to Godbole, the technology behind AI agents is advancing so swiftly that the system Lowe’s develops might be out of date in only two weeks. According to her, this is one of the reasons the corporation is depending on many suppliers, including OpenAI, to support its AI agents.

According to Cosset, Kroger’s chief digital officer, the company is adopting a similar strategy and collaborating with a number of tech companies, such as OpenAI and Instacart. He said, “[AI agents] are not only front of mind, it is a priority for us.” “It is moving at an amazing rate.”

According to Chief Digital and Technology Officer Kevin Vasconi, Papa Johns does not develop its own AI models or agents. For this reason, according to Vasconi, the pizza business is testing Google’s food ordering agent, which can do things like automatically determine how many pizzas a group could want based on a user-uploaded picture. The agent will be accessible to customers via phone, the Papa Johns website, and its app.

Vasconi said, “I want to be an AI specialist in terms of, ‘How do I utilize the agents?,’ not in terms of constructing the agents.” Even if AI agent-based commerce is developing quickly, merchants should take a step back.

Vasconi said, “I do not believe [AI agents] are going to completely transform the business.” “In this day and age, people still contact our businesses on the phone to get pizza.” Papa Johns, Lowe’s, and Kroger refused to comment on how Google’s retail agents had affected their businesses so far.

Frequently Asked Questions

1. What are Google’s AI retailer agents?

Google’s AI agents provide merchants the ability to develop intelligent bots that can help consumers with ordering, shopping, and customer service. They assist companies in communicating with clients more effectively and are a component of Gemini Enterprise for Customer Experience.

2. Which merchants are using Google’s artificial intelligence tools?

Google’s AI agents are being tested by major stores such as Papa Johns, Lowe’s, and Kroger. Lowe’s incorporates it into their virtual assistant “Mylow,” Kroger utilizes it for customized grocery shopping, and Papa Johns employs it for food ordering with clever features like photo-based pizza portion detection.

3. In what ways do AI agents improve the purchasing experience?

AI agents are able to:

• Recognize the context, purpose, and preferences of customers
• Customize suggestions according on price sensitivity, preference, or past purchases
• Manage purchases and automate processes, such as ordering meals
• Provide effective customer service

4. Rather of using third-party chatbots, why are shops developing their own AI agents?

By creating their own AI agents, merchants can:

• Keep control over the distribution and appearance of your products
• Preserve client loyalty
• Do not miss out on upselling or advertising chances
• As AI-based commerce expands, maintain your competitiveness

5. What are the drawbacks or dangers of buying with AI agents?

AI agents may increase convenience, however merchants should be aware of:

• AI agents may not completely replace customer behavior (some still prefer phoning or in-store shopping, for example)
• AI technology is developing so rapidly that internal systems may become obsolete
• An excessive dependence on third-party AI may restrict control and personalization

Conclusion

With AI-powered shopping assistants, Google’s AI agents represent a major advancement in agentic commerce by helping businesses better engage with their consumers. Retailers are striking a balance between innovation, consumer behavior, and operational management even as technology offers ease and customization. The shift to AI agents is part of a larger industry trend that uses technology to improve customer experience while preserving competitive advantages.

Disclaimer

This content is for informational purposes only and does not constitute financial or business advice. Results may vary.