Alphabet Inc. is introducing new features that allow consumers to shop directly within its AI products to increase revenue. Google is testing new ad formats in AI Mode, enabling retailers to promote products and allowing users to make purchases from merchants like Etsy and Wayfair. The company also introduced a “Direct Offers” feature for brands to present discounts to shoppers within AI Mode.

With consumers increasingly relying on AI tools for recommendations, tech companies like Google are looking to monetize interactions through advertising and embedded commerce. Capital spending by Google, Amazon, Meta, and Microsoft is projected to reach $650 billion in 2026. Google’s move follows similar actions by OpenAI and Perplexity AI, which are integrating shopping features into their platforms.

Google partnered with Shopify, Target, and Walmart to introduce AI agents into its shopping ecosystem, allowing users to check out directly within AI products. However, Senator Elizabeth Warren has raised concerns about consumer privacy and the risk of AI encouraging higher spending. Google has assured that merchants are prohibited from listing higher prices on Google than on their own websites.

Read more at Nasdaq: Google Expands AI Shopping Features, Integrating Ads And Direct Purchases Into Search And Chatbots