By creating an open standard for AI shopping agents with major retailers, Google is making a classic platform play. Rather than building a walled garden, it's defining the rules of the road. This ensures its own AI agents (and accompanying ad products) will be central to the future of e-commerce, regardless of which companies build on the protocol.
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Shopify and Google are creating an open-source protocol to let AI agents conduct complex commerce. This universal language moves beyond single-item purchases, enabling nuanced transactions like subscriptions, product bundles, and custom shipping instructions directly within conversational AI, aiming to replicate the full online store experience.
To scale AI-driven purchases, Stripe and OpenAI developed an open standard for checkouts. The "Agentic Commerce Protocol" provides a standard API for businesses to express their checkout process, allowing AI agents to initiate transactions safely and programmatically, moving beyond brittle methods like web scraping.
Google's strategy isn't just to sell AI chips; it's a platform play. By offering its powerful and potentially cheaper TPUs to companies, Google can create a powerful incentive for those customers to run their entire AI workloads on Google Cloud, creating a sticky, integrated ecosystem that challenges AWS and Azure.
While competitors focus on subscription models for their AI tools, Google's primary strategy is to leverage its core advertising business. By integrating sponsored results into its AI-powered search summaries, Google is the first to turn on an ad-based revenue model for generative AI at scale, posing a significant threat to subscription-reliant players like OpenAI.
Google is evolving from its traditional ad model of sending users to external sites towards an integrated AI checkout experience within Gemini. This is a defensive move to protect its core business from AI search erosion and directly competes for control over the customer relationship, posing a threat to D2C brands.
While AI shopping agents promise to protect consumer privacy by abstracting away direct retailer relationships, this is a false dawn. Power will likely centralize with the major tech companies providing these agents, not empower individual users with decentralized control. The battle for "owning the customer" simply moves to a new layer.
OpenAI's partnership with Stripe to enable in-app purchases transforms ChatGPT from an information tool into a transactional platform. This creates a frictionless sales channel for e-commerce brands, directly challenging Google's established search-to-purchase business model.
While large retailers will adopt Google's in-app AI checkout, smaller D2C brands face a tough choice. Participating means ceding control of branding and the customer relationship, but sitting out risks becoming invisible as shopper behavior shifts to AI-native purchasing, making it difficult to catch up later.
Stripe intentionally designed its Agentic Commerce Protocol (ACP) to be provider-agnostic, working with any payments processor and any AI agent. This strategic decision to build an open standard, rather than a proprietary product, aims to grow the entire agentic commerce ecosystem instead of creating a walled garden.
Google is leveraging Chrome's dominance to control the AI landscape. By introducing proprietary, non-standard APIs for local LLMs, they encourage web developers to build experiences optimized for Gemini, effectively creating a moat and making it harder for other AI models to compete on the web.
