The future of shopping has arrived — and Google wants to run it
Alphabet’s Google has moved beyond the search bar, positioning itself as the chief architect of the “agency business.” In this new world, artificial intelligence not only suggests what to buy, but also makes the purchase for you. For years, online retail has operated under a predictable platform: Shoppers search, click on the results, and complete the checkout on the retailer’s website. Agency trading is rewriting these steps. Instead of manually navigating through results, consumers will rely on AI agents that can compare products, manage user accounts, and complete purchases in a single conversation. Google is making this transition possible, adding one more reason why Club is returning to Alphabet for its Google Gemini 3 AI model, which emerged in late December as a top-notch rival to OpenAI’s ChatGPT. Our last purchase occurred during the down market on Tuesday. GOOGL 1Y mountain Alphabet 1 year At the National Retail Federation conference earlier this month, Alphabet CEO Sundar Pichai unveiled the Universal Commerce Protocol (UCP), a new open standard designed to help autonomous AI agents manage the most complex parts of shopping, including discount codes, checkouts, and payment processing. UCP enables retailers to participate in the AI platform exchange by allowing retailers to offer personalized deals and easy checkout directly on Google Search and Gemini. Developed in collaboration with Wayfair, Shopify, Walmart, Etsy and Target.”[UCP] It lays the foundation for AI agents and systems to talk to each other at every step of the shopping journey,” Pichai wrote in a LinkedIn post following the NRF announcement. Google said UCP is designed for both retailers and customers and “keeps the entire customer relationship front and center, from moments of discovery to decision and beyond.” Google also framed mediated commerce as a major platform shift that creates a “new chapter in retail.” It’s a necessary one that aligns with shoppers increasingly turning to AI tools over traditional search. The move comes at a critical time when AI agents are changing the way retail operates and grows, as well as the customer experience. OpenAI’s ChatGPT is a feature that allows users to browse, select and purchase products directly in ChatGPT without leaving the chat. OpenAI also announced last week that it plans to start testing ads in the US, competing directly with Google’s core advertising business. Instead, the company announced that Amazon, a Club name, will begin testing ads in ChatGPT based on the user’s conversation with the chatbot. But Rufus doesn’t complete transactions, so while competition is ramping up, Google has a key advantage: Its ecosystem, which includes Gmail, YouTube, Search, Maps, and Ads, needs AI to get smarter. is fuel. AI-powered Search served over 200 million monthly users as of fiscal 2025. Its Gemini app had more than 650 million monthly users as of November, and Gemini Enterprise surpassed 2 million commercial users within a few months of launch. Until recently, Alphabet had been lagging behind in the race for productive AI, from the initial launch of Gemini (Alphabet’s answer to ChatGPT) to the Justice Department lawsuits over Google’s alleged monopoly in the digital space. That’s why the Club’s other name, Apple, has chosen Gemini as a partner to run its upcoming, powered, AI-powered Siri, “definitely among the most advantageous mega-cap tech stocks at its Monthly Meeting for Club members on Thursday,” Research wrote in an early January note. winner”. With Gemini powering UCP behind the scenes and allowing it to manage the entire shopping journey, Wall Street sees Google’s technology as clearly distinguishing it by introducing UCP technology that powers brokered commerce. UCP signals a new era beyond the traditional “Call-Click-Buy” model beyond the “Chat-Then-Buy” model, analysts said in a study last week. They also say UCP “puts Google into commerce rather than a direct retailer.” The firm believes UCP’s importance lies in enabling “personalized offers, loyalty integration, and checkout directly within AI conversations,” and is preparing to roll out purchase buttons on Google, AI Search, and Gemini. Roth, KeyBanc, reiterated his bullish view, arguing that UCP “builds on historical strength with retailers and AI momentum,” given Google’s long history of helping retailers navigate technological change. We expect Google’s AI momentum to continue, with active shopping on the Gemini app,” they wrote last week. UCP is not committed to retail AI tools, but it adds to the narrative that Google is solidifying its position as a leader in the AI race. Alphabet has shaken the perception that it is trying to play catch-up in the field of productive AI. In fact, we can say that the tech giant is on the offensive, setting the rules of the critical AI trading game. February 4. We will also look forward to what the company sees for 2026. Buying equivalent in Alphabet 1 We have a rating and a price target of $350 per share (Jim Cramer’s Charitable Trust is long GOOGL, AMZN. See here for a complete list of stocks.) When you subscribe to CNBC Investing Club with Jim Cramer, you’ll receive a trade alert before you buy or sell a stock in the charity trust’s portfolio 45 minutes after sending a trade alert after Jim talks about a stock on CNBC TV. 72 hour wait. NO OBLIGATION OR DUTY EXISTS OR IS GUARANTEED BY YOU RECEIVING ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO PARTICULAR RESULT OR PROFIT IS GUARANTEED.
