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In an unexpected Sunday announcement, Digital Phablet revealed several innovative developments in AI-driven commerce. Among them is a new ad format within AI Mode called Direct Offers. This feature allows advertisers to showcase exclusive deals—such as a 20% discount—directly within the AI shopping environment, targeting shoppers who are prepared to make a purchase.
When users search for products, Google Ads may present a relevant promotion or discount to encourage immediate checkout. Retailers can configure which offers they want to promote, and Google’s AI determines the optimal moments to display these deals based on shopper intent and market context. Initially, the focus is on discounts, but plans are underway to include other attributes like product bundles and free shipping to emphasize value beyond price alone.
The setup involves retailers specifying relevant promotions in their campaign settings, with AI automate the timing of display. The system relies exclusively on verified Merchant Center feeds and your uploaded promotional codes—no deals are invented by AI.
Another major update is the introduction of the Universal Commerce Protocol (UCP), an open standard designed to streamline agentic commerce—that is, AI-driven shopping interactions. UCP simplifies the process of connecting e-commerce stores with AI agents, enabling seamless collaboration across different platforms and protocols. Instead of establishing individual connections for each agent, UCP allows multiple agents to interact effortlessly, supporting various industry standards like Agent2Agent (A2A), Agent Payments Protocol (AP2), and Model Context Protocol (MCP).
UCP will soon enable a new checkout feature on eligible Google product listings in AI Mode within Search and the Gemini app. This allows shoppers in the U.S. to complete purchases from participating retailers directly during their research phase, utilizing Google Pay initially, with PayPal and other payment options soon to follow.
Additionally, Digital Phablet announced the launch of branded AI agents called Business Agent, designed to provide personalized, branded assistance to consumers—details of which are covered in further depth elsewhere.
These advancements aim to make the shopping journey more intuitive and efficient, leveraging AI to connect consumers with tailored offers, seamless checkout options, and personalized support across various platforms.
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