Google CEO Sundar Pichai: Why the Retail Sector Needs AI

Sundar Pichai, Google CEO, has announced that the tech firm is partnering with retailers to improve shopping experiences for customers end-to-end.

At the National Retail Federation (NRF)'s event 'NRF 2026: Retail's Big Show' on 11 January, Sundar shared that Google is helping retailers stay competitive in the AI platform shift through specific AI tools aimed at the industry.

In his keynote speech at the event, titled 'The AI Platform Shift and the Opportunity Ahead for Retail', the Google CEO said: “It’s a really dynamic moment for every industry, especially retail. That’s due in part to the AI era we’re in.

“We’ve been partnering with retailers and helping them grow through technology shifts for more than two decades. And we’re excited for a new era of partnership ahead and using our differentiated full stack approach to AI innovation to help.”

According to Google, it processed 8.3 trillion tokens on its Application Programming Interface (API) at the end of Q4 2024, and by the end of Q4 2025 this increased by over 11 times to 90 trillion. 

Google argues this shows the importance of getting the AI-retail moment correct heading into 2026 and beyond.

Google introduces agentic commerce

Google Search has been a prominent search engine on the web since its introduction pre-2000. 

Since 2021, Google’s “Shopping Graph” has provided information on products for searchers in real time, which Sundar describes as “information at the speed of retail” with “over 50 billion product listings, including inventory, prices and reviews”.

With AI mode, users can start conversational interactions with Google Search to quickly find exactly what they’re looking for.

But the firm is taking this one-step further by building “a common language for these systems and services to talk to each other”. At the NRF, Sundar announced Google is introducing the Universal Commerce Protocol (UCP). 

“It was built to meet the needs of retailers and customers,” Sundar said, “keeping the full customer relationship front and centre - from moments of discovery to decision and beyond.”

He shared that it is built together with industry leaders including Spotify, Etsy, Wayfair, Target and Walmart.

In a Google blog post on the matter, it also outlined that many international companies are also in support of the protocol, including:

• Paypal
• Mastercard
• Visa
• American Express

Describing how it works from a customer point-of-view, Sundar explained: “So if you’re searching for a suitcase from Monos, the protocol will allow the merchant to personalise a ‘new member’ price or offer loyalty enrolment instantly.

“For returning customers, retailers can provide special offers based on past purchases or suggest helpful additions like packing cubes at checkout.”

Using agents to aid transformation 

Google is encouraging the use of agents in retail businesses as they can work directly with data to assist with shopping experiences online and in-store.

Sundar announced the introduction of the new Gemini Enterprise for Customer Experience, which is specifically built for agentic retail.

“This platform transforms fragmented search, commerce and service touch points into one seamless journey,” he said, “whether you need a shopping assistant, a support bot, agentic search or help with merchandising."

Partners including The Home Depot and McDonald’s are already using these agents, according to the CEO, and the firm is working with Kroger and other retailers to continue developing AI mode to bring it directly to the retailers’ apps.

Developing delivery 

Wing, Google’s parent company Alphabet’s subsidiary that provides small goods via a drone, was also focused on in Sundar’s talk as an area of retail development.

Acknowledging that delivery can be “logistically challenging for retailers”, Sundar said: “Through our partnership, Wing and Walmart doubled deliveries in existing markets in 2025, and today we announced we’re expanding: we’ll begin deliveries in Houston next week, with Orlando, Tampa, Charlotte and more cities to come soon.”

He added: “We’re excited to help retailers reimagine the shopping experience end-to-end, and look forward to what’s to come in 2026."