Google expands AI shopping with direct checkout at Canadian retailers

Google is expanding the ability for people in Canada to shop through its Gemini AI chatbot with a new direct checkout feature. The instant checkout, launched in partnership with retailers Lululemon, Shoppers Drug Mart, La Maison Simons and selected Shopify merchants, allows customers to make purchases without leaving the Gemini app or Google's AI search mode. The feature, which was introduced earlier this year in the United States and Australia, requires a user's permission to complete a purchase. It represents the latest step in the growing role of artificial intelligence agents in shopping habits.

"It's the customer that will decide what interface they want to interact on," said Frederick Lecoq, Simons chief digital and marketing officer. For retailers, the rise of AI agents presents both an opportunity and a challenge as consumers move away from traditional search. Companies are working to ensure their products appear in AI-generated results, a process known as generative engine optimization. The feature allows a user to ask Gemini for advice on a specific item, receive recommendations from a participating retailer and choose to buy it without visiting the retailer's website.

Other tech companies are also advancing AI shopping agents. Meta Platforms recently expanded the capabilities of its Muse AI agent to check out on a user's behalf with permission. Shopify has partnerships allowing its Shop Pay function to be used within Muse, Claude Duet, Grok Bot and Instinct. The e-commerce platform is considering how users could authorize AI agents to finalize purchases without approving each one, according to Shopify vice-president of product Rohit Mishra. Not all companies are embracing the trend, however, as Amazon blocked Meta's Muse agent from shopping on its site after its launch in September. "If you rewind back 25 years ago, a lot of retailers were saying the same thing about websites," said Nick Engel, senior vice-president of global digital experience at Lululemon, referring to past reluctance about e-commerce. He added that as people increasingly use AI agents to research purchases, "allowing them to take that next step and make the transaction, to me, it makes a lot of sense." A recent Mastercard survey found 41 percent of Canadians are open to using AI to shop online, and of those, more than half would consider letting agents make purchases for them.

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The holiday season is likely to drive further adoption of chatbots for shopping. A Google and Angus Reid survey in October found 59 percent of Canadian respondents plan to use AI to help find holiday gifts. "We see AI, broadly, as an expansionary moment for search," said Eric Morris, Google Canada's managing director and head of retail. "The year-over-year growth rate in search is at its highest level in the last five years." Yadude Books reported in October that Canadian businesses are grappling with AI shopping agents as the market evolves.

Google's instant-checkout feature will have some limitations at launch in Canada. Initially, it will only allow shopping for one item at a time, meaning users cannot build a cart with multiple products to meet free-shipping thresholds unless they click through to the retailer's website. Google has already expanded the feature to allow multi-item purchases in the U.S., and similar plans are in the works for Canada. The company also plans to introduce other capabilities available in the U.S., such as price-alert tools. "Those features are to come, as is the ability to expand beyond just the launch retailers that we're announcing today," Morris said.

With files from The Globe and Mail