Microsoft unveiled a suite of tools and standards aimed at becoming the foundational infrastructure for the “agentic web,” an ecosystem where AI agents conduct product discovery, evaluation, and transactions on behalf of consumers.
This initiative emphasizes the growing significance of AI in commerce, illustrating a shift in how consumers interact with online shopping. Tim Frank, corporate vice president for AI monetization, described the current internet landscape as a convergence of traditional web usage, LLM-driven interactions, and the emerging agentic web where autonomous agents operate independently.
Central to the announcement is Microsoft’s adoption of the Universal Commerce Protocol within its Merchant Center. This open standard, co-developed with Google and Shopify and supported by over 20 entities including Visa and Mastercard, facilitates a framework for AI agents to connect and transact with merchants across various platforms.
The protocol enables AI systems to discover, evaluate, and purchase products without requiring customized integrations from merchants. Additionally, Microsoft is integrating Shopify’s catalog into its AI assistant, Copilot, via its commerce API, granting real-time access to product information from millions of merchants.
To enhance advertising capabilities, Microsoft introduced AI Max for Search campaigns, designed to enhance query matching and personalize ad delivery across AI interfaces such as Copilot and Bing. It also launched “Offer Highlights” ad formats that showcase selling points like free shipping during AI conversations.
A new audience generation tool allows advertisers to define their target customers in simple terms, with the system creating targeting segments automatically. According to Microsoft, automated traffic is currently growing at eight times the rate of human traffic, while agentic browser traffic has surged approximately 8,000 percent year-over-year.
These developments come amid rising competition in the AI commerce sector. Target has emerged as an early launch partner for loyalty integration within Copilot, while brands such as Keen, Pura Vida, and Kyte Baby have begun utilizing Copilot Checkout for sales. This follows the initial launch of Copilot Checkout in January 2026 at NRF, where Microsoft noted that AI-assisted shopping journeys were 33 percent shorter than traditional search experiences.
“The businesses that build for agents now will have compounding advantages as volume scales,” Frank stated, highlighting the anticipated growth and importance of preparing for an agent-driven economy.
