The AI platform shift is reshaping retail at a pace few industries have experienced before. Speaking at the National Retail Federation event, Google CEO Sundar Pichai outlined how artificial intelligence is redefining how retailers engage customers, operate businesses, and grow in an increasingly agent-driven economy. His remarks highlighted why this moment represents not just change, but a major expansion of opportunity.
Retail has always evolved alongside technology, but the current shift stands apart. Over the past two decades, Google has partnered with retailers through multiple platform transitions. Today, the AI platform shift marks the most significant transformation yet, touching every stage of the customer journey. From discovery and decision-making to checkout and delivery, AI is becoming the connective layer across retail experiences.
The scale of this change is already visible in usage data. In December 2024, retailers processed 8.3 trillion tokens on Google Cloud APIs. By December 2025, that number exceeded 90 trillion tokens, representing more than 11 times year-over-year growth. This surge reflects how quickly retailers are adopting AI-powered tools to meet rising customer expectations and operational demands.
At the center of this evolution is product discovery. Google Search has long been a starting point for online shopping, supported by the Shopping Graph, which holds over 50 billion product listings. These listings include real-time data on inventory, pricing, and reviews, with billions refreshed every hour. This foundation ensures information moves at the speed of retail.
With the introduction of AI Mode, discovery is shifting from keywords to natural conversations. Instead of scrolling through pages of results, shoppers can now describe what they want and let AI narrow options instantly.
This conversational approach reduces friction and helps customers move from interest to intent with greater confidence. The Shopping Graph’s integration into the Gemini app extends this experience across more surfaces.
Decision-making, however, remains the hardest part of shopping. This is where agentic commerce enters the picture. To support this emerging ecosystem, Google introduced the Universal Commerce Protocol, or UCP. Designed specifically for the AI platform shift, UCP provides a common language for agents, services, and retailers to work together seamlessly.
UCP is open, platform-agnostic, and built in collaboration with major retailers and marketplaces including Shopify, Etsy, Wayfair, Target, and Walmart. It is also compatible with existing industry protocols and works across retail verticals. Available starting now, UCP is positioned as a foundational layer for commerce at global scale.
One of the first capabilities enabled by UCP is native checkout. Soon, shoppers will see buy buttons directly within Google experiences such as AI Mode in Search and Gemini. From a customer perspective, purchases can be completed without leaving the conversation. From a retailer perspective, they remain the merchant of record and retain ownership of the customer relationship.
This opens the door to deeper personalization. New customers may see instant welcome offers or loyalty enrollment. Returning shoppers can receive tailored pricing, product suggestions, or add-ons based on purchase history. The result is a smoother checkout experience that feels both fast and personal, without sacrificing brand control.
Beyond shopping journeys, the AI platform shift is transforming internal retail operations. Agents are increasingly used to connect company data, customer insights, and frontline experiences. To support this, Google announced Gemini Enterprise for Customer Experience, a platform built specifically for agentic retail.
Gemini Enterprise brings search, commerce, and service touchpoints into a single, cohesive journey. Retailers can deploy shopping assistants, support bots, merchandising tools, or in-store agents from the same foundation. Early adopters such as The Home Depot and McDonald’s are already using these capabilities to improve customer service and operational efficiency.
Google is also working with retailers like Kroger on AI-powered shopping agents embedded directly into retailer apps. These agents function like knowledgeable sales associates, answering detailed questions and offering proactive recommendations. Gemini Enterprise is currently available in preview and is fully integrated with the Universal Commerce Protocol.
Delivery remains another critical piece of the retail experience. It is also one of the most complex and costly. Through Wing, Alphabet’s drone delivery service, Google is addressing this challenge head-on. In partnership with Walmart, Wing doubled deliveries in existing markets during 2025.
Expansion is now underway. Wing deliveries are launching in Houston, with Orlando, Tampa, Charlotte, and additional cities planned next. This expansion demonstrates how AI-driven logistics can help retailers reduce costs while meeting customer expectations for speed and convenience.
Taken together, these announcements show how the AI platform shift is not a single product launch, but a coordinated transformation. It spans discovery, decision-making, checkout, customer service, and delivery. More importantly, it is built on open standards that invite broad participation across the retail ecosystem.
As retailers look toward 2026, the message is clear. AI is no longer an add-on. It is becoming the platform itself. Those who embrace this shift early will be best positioned to build lasting customer relationships and unlock new growth opportunities.
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