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As the holiday season concludes, January heralds a time of anticipation for marketers and brand managers alike. The annual Consumer Electronics Show (CES) and the National Retail Federation (NRF) conference, taking place in the first two weeks of January, unveiled groundbreaking innovations in artificial intelligence (AI) poised to transform the retail landscape.
This year’s emphasis on agentic AI underscored its transformative potential in enhancing shopping experiences and revolutionizing marketing strategies. Below, we explore the most significant announcements from industry leaders, ensuring you remain informed about these pivotal technologies.
AI in consumer engagement and retail
At the NRF conference, Google unveiled several innovative agentic AI features aimed at transforming the shopping experience. A key highlight was the Universal Commerce Protocol (UCP), developed in collaboration with partners including Wayfair and Etsy. This open standard promotes seamless communication among AI agents managing various e-commerce tasks, from product discovery to post-purchase support. The UCP will soon allow a checkout option that will be integrated into Google’s AI Mode in Search and the Gemini app.
Introducing Business Agent
Google and Microsoft unveil new AI-driven sales features
Another significant announcement from Google was the launch of Business Agent. This feature enables brands to create virtual sales associates within Google Search, effectively enhancing customer interaction. Additionally, the Gemini Enterprise for Customer Experience was unveiled, empowering brands to deploy their own agents to facilitate customer journeys. Retailers such as Lowe’s and Kroger have already started utilizing this innovative tool to improve their service offerings.
Meanwhile, Microsoft showcased its own advancements in agentic AI at the National Retail Federation (NRF) conference with the introduction of Copilot Checkout. This feature allows customers to purchase products directly through the AI assistant, streamlining the shopping process. Collaborations with popular platforms like Stripe and Shopify facilitate a seamless checkout experience. Brands such as Urban Outfitters and Anthropologie have begun offering their products through this new feature.
Advertising technology meets AI
As agentic AI gains traction, its role in advertising technology becomes increasingly clear. At CES, PubMatic introduced AgenticOS, an operating system aimed at automating programmatic advertising. This innovative platform leverages a preferred Large Language Model (LLM) interface to deliver critical insights into campaign goals and parameters. Consequently, it empowers agents to execute advertising campaigns with heightened efficiency.
Disney’s annual Global Tech & Data Showcase showcased a sophisticated AI-powered planning tool. This tool utilizes audience agents alongside client briefs to develop targeted campaign strategies. Similarly, NBCUniversal unveiled an AI tool designed to monitor live programming, ensuring that advertisements remain contextually relevant to ongoing events. Additionally, Accenture announced its investment in Profitmind, a retail technology firm focused on automating inventory management and pricing through agentic AI.
Emerging tools and platforms
Several agencies leveraged CES to present their own agentic AI functionalities. Omnicom launched an updated version of its marketing intelligence platform, Omni, now enhanced with technology from the recently acquired IPG’s Acxiom. This upgraded platform is capable of handling tasks such as media investment optimization and creative development.
WPP’s Agent Hub
WPP has entered the competitive landscape with its Agent Hub, a suite of advanced agents integrated into the WPP Open platform. This collection features a brand analytics agent, a behavioral science agent that employs Ogilvy frameworks, an analogies agent aimed at providing brand guidance, and a creative brain agent focused on fostering creativity. Elav Horwitz, WPP’s chief innovation officer, emphasized that their AI strategy prioritizes tapping into creative energy instead of operating within a closed system.
The future of agentic commerce
Shopify embraces agentic commerce with universal commerce protocol
Shopify has joined the agentic commerce trend by introducing its Universal Commerce Protocol (UCP), developed in collaboration with Google. This initiative aims to facilitate native commerce across AI platforms, allowing merchants to sell directly through Google Search and the Gemini app while establishing a solid transaction infrastructure.
The UCP simplifies checkout processes for consumers. It enables users to apply discount codes, enter loyalty information, and finalize terms—all within a conversational interface. This adaptable architecture supports multiple payment processors, ensuring a seamless shopping experience across various platforms.
Expanding access to agentic commerce
As interest in agentic commerce grows, Shopify has made its catalog accessible to brands that do not utilize its platform for online stores. This initiative allows a diverse range of merchants to tap into AI channels, enhancing their customer reach in innovative ways.
The developments showcased at CES and NRF indicate a significant shift towards agentic AI in retail and marketing. As these technologies advance, they are poised to reshape the future of commerce, creating new opportunities for businesses and consumers alike.