Google Plans Checkout Feature Inside AI Mode — Senator Warren Presses on Privacy and Antitrust as Innovation-Regulation Battle Intensifies

Google's AI Checkout Vision and Congressional Scrutiny

Google plans new checkout experience inside AI mode

Executives see agentic AI as a driver for growth and are working to improve the experience through its Universal Commerce Protocol, an open standard for agentic commerce.

On February 5, 2026, CX Dive reported that Google is planning a new shopping experience with direct checkout capabilities within AI mode (Google Search's AI feature) and the Gemini app. This feature is built on the "Universal Commerce Protocol (UCP)" that Google announced at the NRF (National Retail Federation) conference in January. On the same day, eWeek and WebProNews reported that Senator Elizabeth Warren sent a letter to Google CEO Sundar Pichai questioning privacy and antitrust concerns. The battle between AI commerce innovation and regulation has surfaced simultaneously.

Background and Industry Trends

Agentic commerce — a purchasing model where AI agents discover, compare, and purchase products on behalf of consumers — is the defining trend of the retail industry in 2026. Alphabet CEO Sundar Pichai stated in the recent earnings call, "This is the year consumers will actually be able to use all of this." The Gemini app has surpassed 750 million monthly active users, and Alphabet plans $175-185 billion in capital expenditure for 2026.

This market isn't just Google — OpenAI launched ChatGPT's "Instant Checkout" in September 2025, and Microsoft introduced "Copilot Checkout" in January 2026, intensifying the battle for shopping dominance among AI platforms. McKinsey estimates that AI-powered tools and agentic commerce will create $3-5 trillion in new business opportunities in the global retail market by 2030.

However, regulatory discussion hasn't kept pace with technological evolution. According to ChannelEngine's survey of 4,500 consumers, only 17% said they feel "comfortable" with AI completing purchases on their behalf.

Google's UCP and AI Checkout in Full

The UCP that Google announced at NRF is an open-source protocol that standardizes commerce between AI agents and retailers. It covers the entire purchase journey from product discovery, cart building, checkout, to after-purchase support.

Co-development partners include Shopify, Etsy, Wayfair, Target, and Walmart, with over 20 endorsers including Adyen, American Express, Best Buy, Mastercard, Stripe, The Home Depot, Visa, and Zalando. Vidhya Srinivasan, VP and General Manager of Google Ads & Commerce, explained, "UCP is a common language that standardizes all commerce actions including cart building, ID linking, and checkout."

Google Pay is the initial payment method, with PayPal support planned. Future additions include multi-product cart functionality, loyalty program account linking, and post-purchase support for returns and delivery tracking. Retailers maintain their status as "merchant of record," retaining control over customer data, after-service, and returns handling.

Senator Warren's Inquiry — Five Core Questions

Senator Seeks Answers on Google's Role in AI-Powered Shopping

Elizabeth Warren presses Google for clarity on Gemini checkout privacy as the Universal Commerce Protocol expands AI-led shopping across major retailers.

The letter Senator Warren sent to CEO Pichai represents the first serious congressional scrutiny of AI checkout. The response deadline is set for February 17, 2026. The core of the inquiry covers five points.

First, the scope of data collection. The question is whether Gemini retains shopping conversation history, and if so, for how long. Second, secondary use of data. The senator demands clarity on whether collected purchase data will be used for training future AI models.

Third, sharing with third parties. The scope and existence of personal data sharing with retailers and advertisers is being questioned. Fourth, upsell transparency. When Gemini makes product recommendations, will users be informed if they're "for upselling purposes, based on advertising incentives, or based on sensitive user data"? Fifth, competitive fairness. Whether Google prioritizes its retail partners' products over competitors is at issue.

Behind this inquiry is the fact that immediately after the UCP announcement in January, Lindsay Owens, Executive Director of Groundwork Collaborative, issued a warning about "surveillance pricing," garnering over 400,000 views. The concern is that the "upsell" feature included in UCP's roadmap, combined with AI agents' conversation history and browsing data, could lead to individualized price manipulation.

Google countered on X, stating they "strictly prohibit retailers from setting prices on Google higher than on their own sites." However, critics point out that "as long as a mechanism that makes it technically possible exists, policy alone is insufficient."

Impact on E-Commerce Operators and How to Use It

Google's AI checkout vision brings both opportunities and risks for e-commerce operators.

For technical preparation, UCP compatibility is required. Shopify merchants can integrate relatively easily through the platform, but independent e-commerce sites need individual implementation via API or MCP. "AEO (Agentic Engine Optimization)" efforts, including structured data registration with Google Merchant Center, become important.

From a risk management perspective, as eMarketer's Jeremy Goldman points out, increased agent-mediated transactions create the risk that "brands lose control over UX, merchandising, and post-purchase engagement." As a countermeasure against "commoditization" where products are compared solely on "price, inventory, and delivery speed," loyalty program integration and leveraging brand-specific AI agents (Business Agent functionality) become key differentiators.

Preparing for regulatory risk is also essential. The FTC (Federal Trade Commission) is already investigating surveillance pricing, and Senator Warren's inquiry may extend to other AI commerce operators. You should prepare now by ensuring transparency in AI-based product recommendations and documenting customer data handling policies.

Summary

Google's AI checkout vision rapidly elevates agentic commerce from "concept stage" to "implementation stage." As the roster of 20+ partner companies participating in UCP shows, the industry is moving in this direction.

On the other hand, Senator Warren's inquiry has highlighted the structural problem that "regulation can't keep up with the speed of innovation." Traditional privacy regulations aren't equipped to handle the reality where AI agents process information across health, finance, shopping, and other domains in a single conversation. Google's February 17 response deadline will be an important milestone in setting transparency standards for the entire AI commerce industry.

The optimal stance for e-commerce operators is to steadily advance technical preparation for UCP while establishing governance structures that can flexibly respond to changes in the regulatory environment. The balance between "what is technically possible" and "what is socially acceptable" will determine competitive advantage in the agentic commerce era.