TORONTO, ONTARIO / RankWire.AI / – Canadian shoppers can now buy products directly through Google’s Gemini chatbot after the company launched AI-powered checkout in Canada on Wednesday. The Universal Commerce Protocol (UCP)-powered checkout also works in AI Mode on Google Search. Buyers pay through Google Pay with shipping and payment details stored in Google Wallet. Retailers, not Google, remain the sellers of record and are legally responsible for fulfilling orders.
The rollout starts with a small group of partners: Lululemon, Shoppers Drug Mart, Simons and selected Shopify merchants. More retailers are expected to join in the new year. Shopify is both a partner and a rival, having helped build Google’s in-chat checkout while launching its own AI shopping tools. Eric Morris, head of retail at Google Canada, said the service will be free for retailers.
The move deepens a contest among technology giants to turn AI chatbots into points of sale. Amazon and Walmart offer AI assistants that largely stay within their own platforms. Google is instead competing with cross-site agents such as Meta’s Muse. Both Meta and Google aim to become a universal checkout for online stores, sparing shoppers from re-entering payment details on each site. The launch is the California-based company’s latest salvo in that fight.
Google bets on chatbot shopping as search shifts
Morris told CBC News that AI is changing how consumers search for products. He said a query about running tights once returned 10 blue links, while a chatbot can suggest options for a cold, snowy Toronto winter. The change matters for Google, whose parent Alphabet lost about US$500 billion in market value in one session last Thursday. The drop followed slowing search revenue and weaker advertising results.
Vass Bednar of the Canadian SHIELD Institute for Public Policy warned that AI shopping hands companies such as Google and Meta purchase data once held by retailers. She also questioned whether AI can be trusted to prioritize specific consumer needs, such as price. She said research suggests choice is narrower in AI shopping than on the open web. Shoppers may not get the best quality or lowest price, but rather offers linked to advertising relationships, Bednar said.
Retailers welcome tool as experts urge caution
The Retail Council of Canada’s Santo Ligotti said the feature could help budget-conscious consumers compare prices and find deals. He acknowledged fears of biased or sponsored results but called it another useful tool. As more Canadians use it and more companies become discoverable on AI, he said, it will become part of everyday planning. Rotman School of Management professor David Soberman advised shoppers to cross-check results. He said AI agents sometimes miss things and have turned retailers into passive players.
Google Canada expects 59% of Canadians to use an AI tool for holiday shopping, compared with estimates of 39% from Deloitte and 28% from PwC. Several major Canadian banks said last week they would block third-party AI agents from client accounts over security concerns. Morris said transactions are secure and encrypted, and humans still make each purchase. Nick Engel of Vancouver-based Lululemon said he expects many guests to use AI for discovery and shopping this holiday season. Google has also expanded Gemini in Chrome with task automation features.