At the recent National Retail Federation annual conference, Google-parent Alphabet and Shopify ramped up their initiatives to revolutionize online shopping through advanced artificial intelligence. With Alphabet’s stock seeing notable growth — more than 3% this year following a remarkable 65% surge in 2025 — it’s clear that investor confidence is bolstered by their innovative efforts in AI-driven commerce.
Both companies are at the forefront of developing autonomous, purpose-driven AI shopping agents designed to simplify the purchasing process for consumers. The goal is to create a seamless experience where AI can autonomously handle shopping tasks, significantly enhancing the online retail landscape.
During the conference, Google introduced “Gemini Enterprise for Customer Experience,” a set of tools aimed at retailers for deploying AI agents. These tools are integrated into Google’s cloud platform and are designed to assist customers with item location and provide customer support. Retail powerhouses such as Lowe’s, Kroger, and Papa John’s are among the first to adopt these capabilities.
In addition, Shopify unveiled partnerships with Google and Microsoft, emphasizing their commitment to incorporating AI into e-commerce. October marked a milestone when OpenAI’s ChatGPT enabled direct purchases through platforms like Shopify and Etsy, further integrating AI into the shopping ecosystem. Shopify’s latest announcement also revealed that merchants could sell directly through Google’s “AI Mode” and the Gemini app, showcasing a significant leap in how consumers interact with online marketplaces.
The companies also launched the Universal Commerce Protocol, an open standard allowing AI agents to transact with various merchants. This groundbreaking protocol enables AI to complete checkouts on behalf of customers, establishing a more fluid and user-friendly shopping experience.
Looking ahead, the projected value of agentic commerce is substantial, with estimates suggesting it could generate between $3 trillion and $5 trillion annually by 2030, according to McKinsey. Retail giants like Amazon are also entering the fray with their “Buy For Me” feature, showcasing the competitive nature of automated shopping technologies.
Shopify, traditionally focused on consumer e-commerce, is also expanding into the business-to-business (B2B) sector, providing its software to larger enterprises. This evolution enhances its market presence, especially with the upcoming holiday shopping season, which typically represents its busiest quarter.
In a space that’s becoming increasingly dynamic, Shopify’s stock is exhibiting strength, though it still faces challenges, reflected in its D+ Accumulation/Distribution Rating, which indicates mixed institutional buying sentiment.
The landscape of online shopping is evolving rapidly as companies harness AI to enhance user experience and streamline transactions. The future of commerce is undoubtedly leaning towards automated solutions that promise convenience and efficiency for consumers and merchants alike.
