The Future of AI Shopping Ads - Google UCP & ChatGPT

Introduction:

The landscape of online retail advertising is undergoing its most significant evolution since the introduction of programmatic auctions. AI shopping ads are changing fast, driven by consumers asking more questions and expecting data to be transferred to them in real time in a meaningful way. Essentially, this shift is about turning conversations into checkouts.

Until now, users typically searched using short phrases such as “noise cancelling sports headphones”. We have been trained to search in a way that allows search engines to return the most relevant results. However, with recent AI developments, the true intent behind these searches can now be unlocked.

Users are encouraged to be more specific. Instead of a short keyword phrase, the same user might now ask, “Which noise cancelling headphones are light, good for running, and under £100?” This feels much more like having a sales assistant guide you and answer your questions on demand.

As a result, AI will increasingly decide which products to show, when to show them, and where they should appear.

This marks a fundamental shift in how Google shopping ads and emerging AI-led shopping experiences operate.

Two major developments are driving this change: Google Universal Commerce Protocol (UCP) and ChatGPT Agentic Commerce Protocol (ACP). Together, they point to a future where google AI shopping experiences deliver more accurate and more personalised recommendations.

Google and ChatGPT already know far more about users than many people realise. Every question asked helps build a clearer picture of preferences, behaviour, and likely future decisions. This goes far beyond traditional data sets, including cookie-based tracking, which previously helped websites and third parties understand users at a much more limited level.

What does this look like? How does this impact your website?

What is significant is that retail websites may become less central to the shopping journey. This is because conversations will increasingly start on AI-powered search platforms. Product listings will still appear as expected, but with one major difference.

A checkout option will be available directly within these platforms, allowing users to buy without visiting a retailer’s website. This evolution will reshape AI shopping ads, turning them from traffic drivers into transaction enablers. The post-purchase experience, such as order tracking and updates, may also be managed within these platforms.

Some predict that websites could become almost redundant, which suits Google and ChatGPT, as keeping users within their own environments increases user retention and strengthens monetisation across Google shopping ads and ChatGPT shopping experiences.

At ShoppingIQ, we believe a brand’s website will remain essential, though with a different purpose. Rather than acting purely as a transaction point, it will be the place where brands communicate their story, values, user reviews, and product experiences in ways that AI platforms are not designed to deliver.

What does Google and ChatGPT want to achieve?

Google’s goal

Google wants shopping ads to feel more helpful and less like ads.

With UCP, Google is aiming to:

• Use real-time product data like price and stock

• Reduce feed errors and outdated listings

• Show shoppers products that are actually available

• Let AI handle optimisation instead of manual rules

In simple terms, Google wants better data so its AI can make better decisions across Search, Shopping, YouTube, and future google AI shopping experiences.

ChatGPT’s goal

ChatGPT wants to act as a shopping assistant for users.

With ACP, the goal is to:

• Understand what a user really wants

• Compare products across many websites and platforms

• Recommend the best option for that user

• Help complete purchases with less effort

Rather than running an ad auction, ChatGPT shopping focuses on helping users choose. The AI becomes the decision-maker on the buyer’s side, selecting products based on relevance, context, and intent.

When will it take off?

This will not happen overnight, but it is already starting.

Short term, June to December 2026

• Google will push more automation through AI Mode and Performance Max

• Feed quality and real time data will matter more than manual bidding

• Early versions of agent-based shopping will appear in AI tools

Medium term, 2027 to 2028

• AI agents will play a bigger role in product discovery

• Ads will feel more like recommendations

• Users will rely more on assistants to shortlist products

Long term, 2029+

• Shopping decisions will often start with an AI assistant, not a search query

• Product data quality will matter more than campaign structure

• Brands that are easy for AI to understand will win more visibility in AI shopping ads
  

What should you do now?

You do not need to wait for everything to be live. Right now, the smartest move is to prepare your product data for an AI-first world, starting with a solid Google shopping ads setup built on accurate, real-time product data.

That means:

• Keeping prices and stock accurate

• Reducing feed errors, as AI cannot make good decisions with bad data

• Making product titles and descriptions clear, factual, and question-focused

• Ensuring product highlights respond directly to conversational searches

• Structuring data so machines can understand it easily

Think less about core keywords and more about product clarity and intent. Optimise for selection, not just clicks, because this is how AI shopping ads, Google shopping ads, and ChatGPT shopping will determine visibility.

For more information and exclusive tactics, please arrange a demo. If you are based in the US, you may also get started with ChatGPT by applying to be part of the beta.