Google launches open standard for AI-powered shopping transactions - AI News Today Recency

# Google Launches Open Standard for AI-Powered Shopping Transactions

Google has unveiled the Agent Payments Protocol (AP2), a groundbreaking open standard designed to enable artificial intelligence agents to securely initiate and complete purchases on behalf of consumers[1]. Developed in collaboration with over 60 payments and technology partners—including Adobe, Mastercard, PayPal, and Coinbase—AP2 represents a pivotal moment in the evolution of agentic commerce, establishing the foundational trust and transparency required for autonomous shopping to become mainstream[1][2].

How AP2 Secures AI-Powered Transactions

AP2 addresses one of the most critical challenges in agentic commerce: validating that an AI agent has legitimate authorization to make purchases on a user's behalf[2]. The protocol accomplishes this through a system of cryptographically signed mandates that create an auditable chain of evidence from initial request to final checkout[1].

The framework operates in two key stages. First, an Intent Mandate captures the user's original request, constraints, and spending rules when they ask an AI agent to find products—such as "show me white running shoes under $150."[2] Once the agent presents a shopping cart with specific items, the user approves the transaction by signing a Cart Mandate, which creates an immutable record of the exact items, price, and terms[2]. This dual-mandate approach ensures "foundational, auditable proof of user intent at each step," according to Google[2].

The protocol supports multiple payment methods, including credit cards, real-time bank transfers, and stablecoins, while maintaining built-in spending limit controls and comprehensive audit trails[1]. By establishing this verifiable credential system, AP2 helps mitigate fraud, enables financial institutions to better manage risk, and provides the entire ecosystem with a foundation of trust for innovation[2].

The Competitive Race for AI Shopping Dominance

Google's AP2 launch arrives amid intensifying competition in the AI shopping agent space, with major tech companies and retailers racing to capture market share in what analysts project will be a transformative year for agentic commerce[5]. OpenAI has announced partnerships with retailers including Target, Instacart, and DoorDash, allowing shoppers to purchase directly within ChatGPT[5]. Meanwhile, Amazon released its own agentic tool called "Buy For Me," enabling consumers to shop other retailers' websites without leaving Amazon's app[5].

The scale of opportunity is substantial. ChatGPT alone processes approximately 50 million shopping-related queries daily, despite shopping currently accounting for only around 2% of all ChatGPT queries[5]. This suggests enormous growth potential as agentic commerce becomes more prevalent. Companies with established user bases—such as OpenAI (800 million weekly active users) and Amazon (which captures 40% of U.S. e-commerce spending)—may have inherent advantages in driving consumer adoption[5].

Google's Expanded AI Shopping Capabilities

Beyond AP2, Google is rolling out comprehensive AI shopping features through its AI Mode, a conversational search interface that transforms how consumers discover and purchase products[3][4]. Rather than typing traditional search queries, users can now ask natural language questions like "what are some cozy sweaters in autumn colors?" and receive visual results with photos, prices, reviews, and real-time inventory data[3].

The centerpiece of this initiative is agentic checkout, which allows Google's AI agents to monitor prices and automatically purchase items when they reach a user's target price[3]. This feature works with major retailers including Wayfair, Chewy, Quince, and select Shopify stores through Google Pay integration[3]. The system also includes an innovative try-on experience where shoppers can upload their own photos to see how clothing actually fits before purchasing[4].

Google's Shopping Graph, which powers these features, processes over 50 billion product listings with 2 billion updated every hour, ensuring accuracy and real-time availability[3]. This represents a fundamental shift in Google's approach to e-commerce—moving from simply displaying search results and ads to actively participating in transactions themselves[3].

Building Trust in Autonomous Commerce

The success of agentic commerce depends fundamentally on consumer confidence that AI agents will act in their best interests. AP2 addresses this through its emphasis on transparency and accountability[1]. Each transaction creates a verifiable, unchangeable record that proves user authorization at every step, reducing the risk of agents being misused for fraudulent purchases[2].

Industry leaders recognize the importance of this standardization. Bam Azizi, CEO of Mesh, a San Francisco-based payments network, stated: "For AI to truly drive commerce, agents need a secure and universal way to handle payments. Google's new Agentic Payments Standard is a huge step forward, providing the foundational framework to make this possible."[2] This collaborative approach—with 60+ partners contributing to AP2's development—signals broad industry consensus that shared standards are essential for scaling agentic commerce[1].

Google's vision extends beyond mere transaction processing. The company aims to preserve the enjoyable aspects of shopping, such as browsing and serendipitous discovery, while eliminating friction from research, decision-making, and checkout processes[3]. By combining AI-powered personalization with transparent authorization mechanisms, Google is positioning agentic commerce as a natural evolution of online shopping rather than a replacement for human agency[3].

Frequently Asked Questions

What is the Agent Payments Protocol (AP2)?

AP2 is an open standard developed by Google and 60+ partners that enables AI agents to securely initiate and complete purchases on behalf of consumers[1]. It uses cryptographically signed mandates to create verifiable proof of user intent and authorization, establishing an auditable chain from initial request through checkout[1][2].

How do Intent Mandates and Cart Mandates work?

An Intent Mandate captures the user's original request, constraints, and spending rules when they ask an AI agent to find products[2]. Once the agent presents a shopping cart, the user approves by signing a Cart Mandate, which creates an immutable record of the exact items, price, and terms[2]. Together, these mandates create "foundational, auditable proof of user intent at each step"[2].

Which payment methods does AP2 support?

AP2 supports multiple payment methods, including credit cards, real-time bank transfers, and stablecoins[1]. It also includes built-in spending limit controls and comprehensive audit trail generation[1].

How does Google's agentic checkout feature work?

Google's agentic checkout allows AI agents to monitor prices across the web and automatically purchase items when they reach a user's target price[3]. Users set preferences such as size, color, and target price, and the AI agent navigates to the retailer's website to complete the purchase once the price target is met[4].

Who are the major partners supporting AP2?

AP2 is backed by over 60 payments and technology companies, including Adobe, Mastercard, PayPal, Coinbase, Adyen, and MasterCard[1][2]. AI agents from AP2 partners will be available in Google's AI Agent Marketplace[2].

What is AI Mode, and how does it differ from traditional shopping?

AI Mode is Google's conversational search interface that lets users ask natural language questions about products instead of typing traditional search queries[3]. It combines Gemini capabilities with Google's Shopping Graph to provide visual results with photos, prices, reviews, and real-time inventory data, addressing three major shopping challenges: product discovery, fit uncertainty, and price timing[4].