Artificial intelligence (AI) is already changing how consumers find, compare, and buy products. This article explores the current trends, significance, and what WooCommerce merchants need to be aware of.
For online sellers, the methods customers use to discover their products are evolving.
According to McKinsey, half of all consumers now utilize AI when browsing the web. Shoppers are turning to AI tools like ChatGPT for gift suggestions, using Google’s AI summaries for product comparisons, and relying on recommendation engines instead of traditional search methods.
Currently, much of this AI activity revolves around product discovery – individuals leveraging AI to research potential purchases. Companies like Google are delving into discovery and agentic commerce capabilities with projects like Gemini. Payment giants like Visa, Mastercard, and American Express are actively working on enabling AI agents to make transactions on behalf of consumers.
McKinsey predicts that AI-driven commerce could impact up to $1 trillion in US retail revenue and $3-5 trillion globally by 2030. While the accuracy of these projections remains to be seen, the trend is clear: AI is increasingly becoming integrated into the shopping journey, not just as a research tool. Understanding this shift early on is crucial for positioning your store effectively.
AI in commerce encompasses a wide range of applications, from basic features like AI-generated product descriptions and enhanced search functions to autonomous agents that can browse, compare, and make purchases on behalf of shoppers.
Here’s a breakdown of the spectrum:
AI-assisted tools
These tools, like ChatGPT or Claude, assist merchants in writing product descriptions and streamline the search process for customers on their store. AI-powered email platforms personalize subject lines and send times, enhancing efficiency in existing workflows.
AI-enhanced browsing
Consumers are now encountering AI-generated summaries alongside traditional search results, offering a more personalized and conversational product discovery experience.
AI-optimized processes
Behind the scenes, AI is revolutionizing operations by forecasting inventory demand, automating customer service workflows, and optimizing pricing strategies. AI assistants are not just aiding shoppers in finding products but also helping merchants run their businesses more efficiently.
AI agents
AI agents represent the next phase in AI commerce, garnering significant attention. These agents can not only suggest answers but also take action by searching across multiple stores, comparing options based on specific criteria, and even completing purchases on behalf of shoppers.
Agentic commerce, enabled by AI agents, signifies a shift from humans browsing for products to AI agents conducting the shopping process on their behalf. This transition redefines how products are discovered.
Consumers might not be fully prepared for high-ticket agentic commerce, where AI agents handle significant purchases. Trust levels and concerns around returns and refunds still pose challenges for such transactions.
However, the real opportunity lies in comparison shopping for considered purchases, where shoppers rely on AI to research and compare products before making a decision. This is particularly relevant for products that require detailed specifications, reviews, and comparisons.
Structured product data plays a crucial role in AI-driven commerce, offering a competitive advantage for independent stores. Clean and structured product data allows merchants to stand out and be more visible to AI agents across different platforms.
Model Context Protocol (MCP): Giving AI real-time access to your store
MCP establishes a standardized method for AI models to securely access real-time store data, enabling them to provide more accurate recommendations based on current information.
AI agents require access to structured product data, the ability to perform actions like adding items to a cart, secure payment processing, and established protocols for communication with store systems.
Agentic Commerce Protocol (ACP): Connecting merchants to AI-driven discovery
ACP, developed in collaboration between OpenAI and Stripe, defines how AI agents can interact with merchant catalogs and payment systems to facilitate product discovery and recommendations.
For stores, supporting ACP means that products can be discovered and recommended within AI ecosystems like ChatGPT, enhancing visibility and reach.
Universal Commerce Protocol (UCP): Enabling purchases across Google and beyond
UCP, introduced by Google, enables AI agents to discover and complete purchases directly on Google platforms, broadening the scope of agentic commerce. Merchants must expose structured product data through the Google Merchant Center to participate in this ecosystem.
How these protocols relate and how to prepare for the future
MCP, ACP, and UCP form the foundational infrastructure for AI-driven commerce, each serving a specific purpose in connecting AI agents with merchant stores. Supporting these protocols enhances a store’s discoverability and accessibility to AI shopping agents.
As AI technology advances and platforms integrate AI into shopping experiences, merchants need to adapt to these changes by ensuring their product data is clean, structured, and readily accessible to AI systems.
WooCommerce is actively integrating with these emerging protocols, such as MCP, ACP, and UCP, to enable merchants to leverage AI-driven commerce effectively.
Ultimately, the ability to adapt to AI-driven commerce will be crucial for merchants to remain competitive and reach a wider audience of shoppers in the evolving digital landscape.