Google’s AI just learned how to haggle.
Timed to NRF, the company has rolled out a new AI commerce standard, plus a new set of tools to make AI-driven shopping more of a reality. The launch is a broader push toward what the company calls an “agentic commerce” future.
At a high level, the launch spans multiple layers of Google’s commerce stack. On the standards side, Google is introducing the Universal Commerce Protocol (UCP), an open framework meant to let AI agents, retailers, and payment systems talk to each other across discovery, checkout, and post-purchase support (see the roadmap for UCP here). On the product side, Google is expanding AI-based shopping experiences across Search and Gemini, including branded AI agents for retailers and in-context checkout.
Within that broader push is also Direct Offers, a Google Ads pilot that lets brands present exclusive discounts directly inside AI Mode when Google determines a shopper has high purchase intent. Rather than functioning like a traditional Shopping ad, Direct Offers pulls from verified Merchant Center feeds and advertiser-uploaded promotions, with Google’s AI deciding when — and whether — to surface a deal.
Why This Matters:
Direct Offers signals a subtle but important shift in how Google is positioning advertising inside AI-driven search. Instead of focusing purely on visibility or ranking, Google is experimenting with ads that behave more like negotiation tools — surfacing incentives only when AI predicts they’ll actually close the sale. That could change how advertisers think about discounting, promotions, and incrementality in AI-powered environments.
More broadly, the launch underscores how seriously Google is taking agentic commerce. By pairing ads, checkout, and open protocols, Google is trying to ensure that as shopping moves into conversational and AI-led experiences, it remains deeply integrated into the Google Ads and Merchant Center ecosystem — rather than splintering off into closed, retailer-specific agents.
Experts React:
In an X post announcing Direct Offers, Google’s industry liaison Ginny Marvin framed the product less as advertising and more as assisted selling:
“Advertisers should think of Direct Offers less like a standard ad and more like a salesperson negotiating a deal on your behalf. It allows you to offer special discounts to high-intent shoppers to turn browsers into buyers.”
In a separate blog post officially announcing the standards and new tools, Vidhya Srinivasan, VP/GM of Ads and Commerce at Google, positioned Direct Offers within a much larger shift toward AI-led shopping:
“As shoppers turn to AI for discovery, retailers need smarter ways to deliver value… [allowing] advertisers to present exclusive offers for shoppers who are ready to buy — like a special 20% off discount — directly in AI Mode”
Our Take:
Direct Offers feels less like a flashy new ad format and more like infrastructure to steer what comes next. Google is basically assembling a full-stack commerce layer inside its AI surfaces, while extending this to the broader retail ecosystem. With the launch, they’re also testing how much control advertisers are willing to hand over to AI systems that decide when buying/persuasion should happen.
(Final sidebar: note that shopping and commerce, not “straight advertising,” has really become the core focus for those offering AI solutions. We see that, to some degree, now with Google and also with other players, like OpenAI.)
