Add to bot: how AI agents could reshape online retail

The way consumers are shopping online is changing – again.

Less than a decade after ecommerce kickstarted the global retail apocalypse, the rise of agentic AI is threatening to disrupt the way brands sell their products online.

Image credit: Made by Tech in Asia with the help of AI

While the use of AI in retail is not new, at least two platforms – OpenAI and Gemini – have launched features that allow consumers to buy directly through their chat windows without having to navigate through ecommerce marketplaces.

Google’s Universal Commerce Protocol (UCP) and OpenAI’s Instant Checkout on ChatGPT allow retailers to reach customers directly without owning an app, a marketplace, or even a storefront.

In the US, Instant Checkout can be used on Etsy, Walmart, and some Shopify merchants. Target is also working with OpenAI and Gemini to integrate its offerings.

These features could squeeze margins for existing ecommerce platforms by undercutting selling and advertising fees.

While the likes of UCP and Instant Checkout are only available in the US so far, experts that Tech in Asia spoke with say it will be easy for AI platforms to bring these features to Southeast Asia.

OpenAI has said it will launch Instant Checkout internationally, while Google has identified Indonesia as a target market for UCP. No dates have been announced, but when it happens, it could happen swiftly.

Zennon Kapron, director of fintech consultancy GL Insight, points out that since these AI features do not handle transactions, they would not need to be licensed. As such, they could rapidly become operational.

While marketplaces and payment providers “need to worry about the complexity,” he says, “OpenAI just needs to worry about which country you’re in and who’s going to ship you your coffee maker.”

This should surprise no one

AI is already making an impact on ecommerce sites globally. According to McKinsey & Company, roughly 10% of global purchases begin via AI or agent-led interactions, and that share is expected to grow as conversational and autonomous shopping tools mature.

The tech is no longer limited to making and offering recommendations. With agents, AI can manage carts, select products, and authorize transactions. These agents allow users to search and compare products, confirm pricing and delivery, and authorize payment without leaving the chat window.

But here’s what AI platforms don’t do: They don’t manage inventory or customer service, nor do they act as a merchant of record.

Agents and the role of fees

Control and advertising

Good agent, bad agent