Microsoft unveiled a set of tools and standards aimed at establishing infrastructure for the “agentic web,” where AI agents conduct transactions independently of human users. The announcement outlines current internet dynamics as a blend of the human web, the LLM web, and the emerging agentic web, according to Tim Frank, corporate vice president for AI monetization.
Microsoft’s support for the Universal Commerce Protocol in its Merchant Center is a key aspect of this initiative. Co-developed by Google and Shopify and backed by over 20 companies including Visa and Mastercard, this protocol enables AI agents to engage with any merchant across platforms, positioning it as critical for the agent-driven economy.
The integration of Shopify’s catalog into Microsoft’s AI assistant, Copilot, via its commerce API will provide real-time access to millions of merchants’ products, including pricing and inventory, without the need for separate feeds. This functionality enhances the capabilities of AI systems to facilitate transactions autonomously.
In addition, Microsoft introduced AI Max for Search campaigns to enhance ad delivery on AI platforms like Copilot and Bing. The company also launched “Offer Highlights” ad formats, showcasing selling points like free shipping within AI conversations. A new audience generation tool allows advertisers to define target customers in plain language, allowing for automatic segment construction.
Microsoft reported that automated traffic is growing eight times faster than human traffic, with agentic browser traffic surging approximately 8,000 percent year-over-year. This rapid growth underscores the urgency of adopting these new tools.
The announcements coincide with increased competition in AI commerce. Target is an early launch partner for loyalty integration in Copilot, while brands like Keen, Pura Vida, and Kyte Baby have begun utilizing Copilot Checkout. Launched in January 2026, Copilot Checkout reportedly shortens AI-assisted shopping journeys by 33% compared to traditional search methods.
Frank emphasized that businesses that prepare for agent-based interactions now will gain long-term advantages as demand increases. “The businesses that build for agents now will have compounding advantages as volume scales,” he stated.
