Microsoft launches Copilot Checkout as AI shopping race against OpenAI and Google intensifies

Microsoft will put buy buttons directly in Copilot

Microsoft is launching a new feature in Copilot that will allow you to make purchases during conversations with the AI chatbot. Now, when you're asking for suggestions about what kind of sneakers you should buy, Copilot can surface a checkout option for the product you choose directly inside the app. An example shared by Microsoft shows someone using Copilot to search for a small lamp for their bedside table. The chatbot responds with a recommendation, along with a "Details" button for more information and a "Buy" option. Hitting the "Buy" button pulls up a checkout screen where you can enter shipping and payment information and confirm your purchase without visiting the retailer's website. It's similar to the built-in checkout feature OpenAI has launched within ChatGPT and comes as part of a growing trend that has AI-powered agents shopping on a customer's behalf. Google has launched agentic checkout in Search and AI Mode, while Perplexity's AI-powered browser and chatbot can help users buy products, too, which Amazon isn't very happy about. Microsoft is rolling out in-chat checkouts on Copilot.com in the US, and it's currently available with select retailers, including Urban Outfitters, Anthropologie, Ashley Furniture, and some Etsy sellers. PayPal, Stripe, and Shopify are working with Microsoft to power payments.

Microsoft is now integrating shopping directly into Copilot

Have you ever wanted to save approximately three seconds and two mouse clicks when shopping online? Microsoft has something special just for you. The company just introduced something called at the NRF 2026 retail conference. This is exactly what it sounds like. It's a shopping assistant embedded within Copilot. The feature is rolling out now in the US and , Shopify, Stripe and Etsy. It lets people complete purchases directly inside of Copilot without having to withstand the grueling experience of being redirected to a retailer's website. Participating partners include Urban Outfitters, Anthropologie and Ashley Furniture. The retailers remain the actual merchant of record, so they'll still get customer data and all of that jazz. Microsoft controls the interface. We don't know what kind of safeguards are in place to prevent the AI from hallucinating its way into buying you a giant bounce house when you wanted to order some Bounce dryer sheets. Engadget has reached out to Microsoft to inquire about these safeguards and how exactly the money is handled. This is a pretty big moment for AI shopping. OpenAI several months ago that . However, the company a related shopping assistant "might make mistakes about product details like price and availability" and it encouraged people to visit the merchant site for the most accurate details. Microsoft is advertising Copilot Checkout as a way to avoid the merchant site entirely, so maybe all kinks have been worked out. A recent report suggests OpenAI has had trouble integrating merchant partners for its own initiative, so maybe not. It's also worth noting that automatic shopping isn't exactly a new concept. It's just the AI wrapper that's new. Remember those that would complete a purchase with a simple press? That was over ten years ago.

Microsoft debuts Copilot Checkout, joining AI shopping race vs. Amazon, Google and OpenAI

[Editor's Note: Agents of Transformation is an independent GeekWire series and 2026 event, underwritten by Accenture, exploring the people, companies, and ideas behind the rise of AI agents.] Microsoft is making its own bid to turn AI conversations into agentic commerce, announcing a new feature called Copilot Checkout that lets users complete purchases directly within its AI chatbot, without being redirected to an external website. The company is betting that its existing enterprise technology footprint and established relationships with large retailers will give it an edge over OpenAI, Google, and Amazon in winning over merchants wary of giving up control to retail rivals or AI intermediaries. "We've designed it in such a way that retailers own those relationships with the customers," said Kathleen Mitford, corporate vice president of global industry marketing at Microsoft. "It is their data, it is their relationship, and that's something that's really important to us." It's part of a broader AI rollout by Microsoft at NRF 2026, the retail industry's annual conference in New York. Microsoft is also launching Brand Agents, pitched as a complete solution for Shopify merchants to add AI assistants to their websites, along with new AI tools to assist store employees and help retailers enhance their online product listings and metadata. Copilot Checkout works by surfacing products from partner retailers within Copilot search results. Purchases can be completed without leaving the conversation. Microsoft says the retailer remains the merchant of record, handling fulfillment and customer service. But will people buy in chat? The bigger question for the tech industry is whether chat-based commerce is actually the next big thing. Forrester analyst Sucharita Kodali, for example, previously told GeekWire that "e-commerce isn't a problem that needs to be fixed." She added that it's unclear what value chat-based commerce is bringing to retailers, "other than disintermediating Google." Microsoft's Mitford offered a different take in an interview this week, saying that consumer behavior is shifting faster than it may seem. She drew a parallel to how quickly businesses moved from experimenting with AI to putting it into operation over the past year. "I see the same thing happening with consumers ... it just takes a little bit of time," Mitford said, predicting that the speed of consumer adoption will eventually match the rapid uptake seen in the business world. Copilot Checkout is rolling out now in the U.S. on Copilot.com, with PayPal, Shopify, and Stripe handling payment processing. Etsy sellers will be among the first available on the platform. Shopify merchants are set to be automatically enrolled following an opt-out window. That last detail is notable given the backlash Amazon has faced over its "Buy for Me" feature, where brands complained about being included without consent and seeing inaccurate listings. Microsoft's approach is more tightly connected to its partners -- the company said Shopify will management the opt-out process for its merchants -- but automatic enrollment seems to raise the potential for some of the same concerns. (We've contacted Shopify for more information.) The competitive landscape More broadly, Microsoft is playing catch-up on the consumer side. OpenAI launched Instant Checkout in ChatGPT last September, partnering with Shopify and Stripe to let users buy from more than a million merchants. Google followed in November with its own "Buy for Me" feature which lets its Gemini assistant purchase products on a user's behalf. Despite its inroads with businesses, Copilot has a fraction of ChatGPT's market share with consumers. Recent data from Similarweb's Global AI Tracker showed ChatGPT with about 68% of AI chatbot web traffic, with Google Gemini at 18% and Copilot in the single digits. But Microsoft has its advantages: Unlike Amazon and Google, which compete directly with retailers through their own marketplaces, it isn't a retailer. And retail has long been a major vertical for its enterprise cloud and software business, with large chains running on Azure and Microsoft 365. Mitford said Microsoft is leaning on its existing trust and long-standing relationships with retailers, along with a commitment to responsible AI, to help differentiate itself from rivals. Microsoft is making the broader case for AI to retailers based on return on investment. A Microsoft-commissioned study from IDC, released in November, found that retail and consumer packaged goods companies are seeing a 2.7x return on every dollar spent on generative AI. Mitford, a former fashion designer who has been in the technology industry for most of her career, said she sees the retail sector among the leaders in AI uptake across the business world. The technology, she said, is being "adopted at a pace that I've never seen."

Microsoft turns Copilot chats into a checkout lane with Shopify, PayPal and Etsy

Why it matters: Big Tech is racing to turn AI assistants into the front door of the internet. * If checkout happens inside AI conversations, retailers risk losing direct customer relationships -- while platforms like Microsoft gain leverage. Driving the news: Microsoft unveiled new agentic AI tools for retailers at the NRF 2026 retail conference, including Copilot Checkout, which lets shoppers complete purchases inside Copilot without being redirected to a retailer's website. * The checkout feature is live in the U.S. with Shopify, PayPal, Stripe and Etsy integrations. State of play: Microsoft is betting shopping urgency favors AI-driven commerce. New Adobe data shows traffic to retail sites from generative AI tools jumped more than 693% during the 2025 holiday season, underscoring how fast AI-assisted shopping is spreading. * This puts Microsoft squarely in competition with Amazon, Google Shopping and social commerce platforms. By the numbers: Copilot apps have more than 100 million monthly active users, spanning consumer and commercial audiences, according to the company. * More than 800 million monthly active users interact with AI features across Microsoft products more broadly. * Shopping journeys involving Copilot are 33% shorter than traditional search paths and see a 53% increase in purchases within 30 minutes of interaction, Microsoft says. * When shopping intent is present, journeys involving Copilot are 194% more likely to result in a purchase than those without it. How it works: Shoppers complete purchases directly inside Copilot chats, according to Microsoft. * Retailers remain the merchant of record, while Microsoft controls the interface. Zoom in: Microsoft also announced Thursday it is rolling out: * AI shopping agents trained on a brand's catalog. * Tools that auto-enrich product data from images. * Store-operations agents that can recommend staffing and inventory decisions based on real-time data. Yes, but: Copilot's roughly 100 million monthly active users trail ChatGPT's much larger user base, which OpenAI has said reaches about 800 million weekly users. * OpenAI's ChatGPT shopping efforts have gotten off to a rocky start, with high-profile partners not yet available and others still waiting for details to join, according to a new report from The Information. What we're watching: Much of the announcement centers on templates, previews and promises, not proven adoption.

Microsoft introduces Copilot Checkout to help you shop and pay without leaving the chat

Copilot Checkout is rolling out in the US for Shopify, PayPal, and Stripe merchants. OpenAI introduced an Instant Checkout feature in ChatGPT last year, letting users browse and buy products without leaving the chat interface. Google soon followed with shoppable product listings in its Gemini app, and now Microsoft has announced a similar checkout experience for Copilot. According to Microsoft, Copilot Checkout lets users browse, compare, and buy products without leaving the chat screen. The company has partnered with Shopify, PayPal, and Stripe to enable the experience and promises a friction-free onboarding process for businesses that want to participate. The feature is rolling out in Copilot on the web in the US, and merchants who rely on Shopify will be automatically enrolled "following an opt-out window." Businesses using PayPal or Stripe for payments will have to submit an application to become a Copilot Checkout merchant. Recommended Videos Microsoft says it has already partnered with several merchants, confirming that Copilot Checkout will support Urban Outfitters, Anthropologie, Ashley Furniture, and select Etsy sellers at launch. The company also notes that participating merchants will remain the merchant of record for all transactions and retain ownership of transaction data, customer data, and customer relationships. Microsoft is also helping brands deploy custom AI shopping assistants Alongside Copilot Checkout, Microsoft has also introduced AI-powered shopping assistants for merchant websites called Brand Agents. These agents are tailored to the merchant's needs and can respond in their brand voice, guide customers through product discovery and comparison, answer questions product-related, surface checkout links, and offer post-purchase recommendations. Merchants using Brand Agents will get access to a dedicated dashboard with helpful insights such as engagement rates, conversion uplift, average order value, and performance comparisons between agent-assisted sessions and organic traffic. Brand Agents are rolling out to Shopify merchants, and interested businesses can sign up for early access by installing Microsoft Clarity on their Shopify store.

Microsoft's New AI Feature to Let Users Purchase Products Within Copilot

Both payment firms have also partnered with OpenAI for a similar feature Microsoft, on Thursday, introduced Copilot Checkout, a new artificial intelligence (AI)-powered shopping experience for its chatbot that allows users to make purchases right from the chat window. With this release, the Redmond-based tech giant has joined OpenAI, Google, and Perplexity in the rising trend of AI shopping tools. While the tech giant is a late entrant in this space, it has already forged partnerships with Shopify, PayPal, and Stripe for the capability. Notably, in November, the company released shopping features for Copilot in the Edge browser. Microsoft Releases Copilot Checkout In a blog post, the tech giant announced and detailed the new AI shopping experience for Copilot. It is currently available in the US on the chatbot's website, with broader rollout across more regions and interfaces expected soon. Microsoft has also opened an application form for merchants who wish to onboard the experience via PayPal or Stripe. For now, eligible users can look up and purchase products listed on Shopify via Copilot. The company pitches the new capability as a "conversation to conversion" tool, claiming that "journeys that include Copilot led to 53 percent more purchases within 30 minutes of interaction compared to those without," and "when shopping intent is present, journeys with Copilot are 194 percent more likely to result in a purchase." For the end user, the experience is straightforward. They can go to Copilot's web client and write a prompt about a product they have in mind or want recommendations for. Once the chatbot suggests products (currently only those listed on Shopify), users will see an option to buy. Tapping the option will open a new pop-up window to make the payment and complete the purchase. After that, they will receive the details of the order, delivery details, and a link to track the delivery. Interestingly, Microsoft claims that despite enabling the shopping experience on its interface, the company will not take charge of the transaction, the customer data, or the post-purchasing relationship of the merchant. It will hand over the relevant data at the time of the transaction. This was likely done to avoid a situation like Perplexity, which was handed a cease-and-desist letter by Amazon for degrading customer experience and eroding trust.

Microsoft partners PayPal and Stripe for Copilot AI shopping

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community. Users of the Copilot bot in the US can buy products from Etsy businesses and retailers like Urban Outfitters and Anthropologie in the chat using checkout. The Stripe integration means that when a Copilot conversation naturally leads to a shopping experience, a Stripe-powered checkout may appear natively within the chat. To populate the checkout, Microsoft communicates with Stripe. Stripe then connects with the seller via the Agentic Commerce Protocol, an open standard for agentic commerce codeveloped by Stripe. After the buyer provides their payment credentials, Stripe issues a Shared Payment Token, a primitive that facilitates payments without exposing the buyer's credentials. Stripe then passes this token to the seller, who can process the transaction through Stripe or, if they prefer, with another payment provider while still benefiting from Stripe's risk signals for fraud protection. PayPal is working with Microsoft to power surfacing merchant inventory, branded checkout, guest checkout and credit card payments. "By integrating PayPal's agentic commerce services with Copilot's intelligent shopping platform, we are enabling seamless, reliable transactions for both merchants and consumers," says Michelle Gill, GM, small business and financial services, PayPal. In addition to the Checkout feature, Copilot is offering merchants on the Shopify platform Brand Agents that are trained on a firm's product catalog, enabling it to answer detailed product questions and engage shoppers in brand-aligned conversations. Kathleen Mitford, corporate VP, global industry, Microsoft, says: "With Microsoft's agentic AI, retailers can automate what slows them down and amplify what sets them apart, enabling faster decisions and stronger customer relationships while building operations ready for whatever comes next."

Microsoft Unleashes Agentic AI To Automate Every Corner Of Retail - Microsoft (NASDAQ:MSFT)

Microsoft Corp. (NASDAQ:MSFT) on Thursday launched a suite of "agentic AI" tools aimed at automating key retail tasks, from merchandising and marketing to store operations and fulfillment, positioning the company to help merchants boost efficiency and shopper relevance. The new capabilities layer intelligent automation over previously disjointed retail workflows, helping teams act with more context and speed. A centerpiece of the rollout is Copilot Checkout, which Microsoft said allows customers to complete purchases discovered within Copilot without being redirected to external retailer sites. Now available in the U.S. on Copilot.com, the feature is powered by partners including PayPal Holdings, Inc. (NASDAQ:PYPL), Shopify Inc. (NYSE:SHOP), and Stripe, with Shopify merchants slated for automatic enrollment after an opt-out period. AI Agents Drive Engagement Microsoft introduced Brand Agents for Shopify merchants and a customizable "personalized shopping agent" template in Copilot Studio designed to answer product questions, guide discovery, and offer tailored recommendations. The company noted Kappahl Group as an early adopter exploring these tools to improve conversion and reduce product returns. In public preview, Microsoft's catalog enrichment agent template extracts product data from images and enriches it with insights to automate onboarding and categorization. Another previewed tool, the store operations agent, aims to speed up service by helping staff answer inventory and policy questions and recommending priorities using signals such as sales trends and foot traffic. AI Tailwinds + Investor Lens Analysts see broad enterprise demand for agentic AI as a growth catalyst. Bank of America Securities forecasts the agentic AI market could reach roughly $155 billion by 2030, with Microsoft among key beneficiaries of this trend MSFT Price Action: Microsoft shares were down 1.09% at $478.19 at the time of publication on Thursday, according to Benzinga Pro data. Image via Shutterstock MSFTMicrosoft Corp$478.81-0.96%OverviewETSYEtsy Inc$61.37-0.63%PYPLPayPal Holdings Inc$58.670.28%SHOPShopify Inc$166.25-0.29%XLKState Street Technology Select Sector SPDR ETF$144.11-1.65%XRTState Street SPDR S&P Retail ETF$89.941.92%Market News and Data brought to you by Benzinga APIs

Microsoft Introduces Agentic AI Solutions for Retailers | PYMNTS.com

These solutions power automation in functions such as merchandising, marketing, store operations and fulfillment, the company said in a Thursday (Jan. 8) press release. "With Microsoft's agentic AI, retailers can automate what slows them down and amplify what sets them apart, enabling faster decisions and stronger customer relationships while building operations ready for whatever comes next," Kathleen Mitford, corporate vice president of global industry at Microsoft, said in the release. One new solution, Copilot Checkout, enables merchants to sell products to consumers within Copilot, without the shopper being directed to an external site. This offering is now available in the United States on Copilot.com and merchants can onboard to it through partners that include Shopify, PayPal and Stripe. A PayPal executive said in a Thursday press release that PayPal's collaboration with Microsoft "marks another step forward in our strategy to support merchants and consumers in AI-powered shopping experiences." Two other new solutions from Microsoft add agentic commerce to websites owned by retailers, according to the Microsoft press release. These include Brand Agents, which is a turnkey solution available for merchants on the Shopify platform, and the personalized shopping agent template in Copilot Studio, which provides a fully customizable framework for retailers. A catalog enrichment agent template is now in public preview in Copilot Studio. This solution is an intelligent assistant that transforms merchants' product data into enriched, structured data better suited to agentic commerce. Another solution now in public preview in Copilot Studio is a store operations agent template that provides store leaders and associates with a natural language interface that answers questions about inventory availability and store policies, orchestrates workflows, and delivers recommendations for staffing, key performance indicators and operational priorities. "Microsoft's new agentic AI solutions mark a turning point in the era of agentic AI for retailers, giving them the tools to anticipate change, operate more efficiently and deliver experiences that truly reflect their brand values," the company said in the release. PYMNTS reported in January 2025 that tech companies had begun rolling out AI-powered retail solutions that marked a shift from generative AI to agentic AI, where AI systems don't just generate responses but actively perform complex tasks with minimal human intervention.

Microsoft expands AI commerce tools with Copilot Checkout and Brand Agents

Microsoft has announced new commerce capabilities for its AI ecosystem with the introduction of Copilot Checkout and Brand Agents. The features are designed to support shopping journeys that begin with AI-assisted discovery and progress directly to purchase within the same interaction. The company stated that shopping behavior has shifted toward conversational decision-making, where users ask questions, compare options, and decide in real time. Copilot Checkout and Brand Agents are intended to address this shift across AI assistants and merchant websites. Copilot Checkout allows users to complete purchases directly within the Copilot experience without being redirected to external websites. Microsoft reported early data from Copilot shopping journeys indicating: Copilot Checkout forms part of Microsoft's broader agentic commerce roadmap. Microsoft is enabling Copilot Checkout through integrations with Shopify, PayPal, and Stripe. Merchant onboarding is structured as follows: Microsoft stated that once enabled, Copilot Checkout does not require additional integrations. Microsoft confirmed that Copilot Checkout will support a range of merchants at launch, including Urban Outfitters, Anthropologie, Ashley Furniture, and selected Etsy sellers. Additional merchants are expected to be added over time as the platform expands. Brand Agents bring AI assistance to merchant websites Microsoft also introduced Brand Agents, AI-powered shopping assistants designed for deployment on merchant websites. Microsoft said Brand Agents can be deployed within hours and are intended to support customer decision-making without replacing existing site navigation or brand identity. Brand Agents are integrated into Microsoft Clarity, Microsoft's free website analytics platform. Merchants using Brand Agents gain access to dashboards showing: These insights are intended to help merchants evaluate the impact of AI-assisted shopping and adjust site strategies accordingly. PayPal announced that it is partnering with Microsoft to support Copilot Checkout by enabling payment and commerce functions within the Copilot experience. PayPal stated that merchant catalogs become purchasable through its store sync capability, which is part of its agentic commerce services. Merchants interested in enabling agentic commerce experiences can apply through PayPal's AI platform. Copilot Checkout is beginning to roll out in the United States The feature is launching first on Copilot.com and will expand across Microsoft's Copilot surfaces, including Bing, MSN, and Edge Microsoft will showcase live demonstrations of Copilot Checkout and Brand Agents at the National Retail Federation (NRF) conference from January 11 to 13 Speaking on the PayPal partnership, Nayna Sheth, Head of Product for Agentic Payments at Microsoft, said:

Microsoft Copilot Checkout Brings AI-Powered Shopping to Chat

Microsoft Launches Copilot Checkout to Enable End-to-End AI-Driven Online Shopping Microsoft has launched Copilot Checkout, a shopping assistant powered by artificial intelligence, to make the shopping process easier for consumers. The launch was announced at the NRF 2026 Retail Conference. The integration between Copilot Checkout service and the Microsoft Copilot platform enables customers to browse products and make payments directly from within the AI interface without necessarily accessing a retailer's site on the platform by following numerous links that may involve filling out forms associated with such sites. Microsoft designed the service to eliminate the hassle of online shopping platforms that require numerous links and forms to complete a purchase.

After OpenAI, Microsoft adds Copilot Checkout to turn Copilot into an AI shopping assistant

Unlike OpenAI's shopping assistant, Microsoft is positioning Copilot Checkout as a fully in-AI purchasing flow, though safeguards against errors remain unclear. After OpenAI, Microsoft has now introduced a new AI-powered shopping feature called Copilot Checkout to simplify online purchases using artificial intelligence. The announcement was made during the NRF 2026 retail conference. The company stated that this tool is a faster alternative to traditional e-commerce checkouts. Copilot Checkout is built right into Microsoft Copilot, allowing users to complete purchases without being directed to a retailer's website. The feature is currently being rolled out in the United States and supports major payment and commerce platforms such as PayPal, Shopify, Stripe and Etsy. Early retail partners include Urban Outfitters, Anthropologie and Ashley Furniture. Microsoft clarified that participating retailers continue to be the merchants of record even though the checkout process occurs within Copilot. This means that Microsoft manages the interface and AI-powered flow, while sellers continue to handle transactions and customer data. Also read: Oppo Reno 15 Pro, 15 Pro Mini and 15 launched in India: Check price and specs For the unversed, OpenAI previously introduced a similar shopping assistant, but it cautioned users that AI-generated product details, such as pricing and availability, could be incorrect and advised them to double-check on merchant websites. In contrast, Microsoft is promoting Copilot Checkout as a way to complete purchases entirely within the AI experience. Details about error-prevention measures, such as incorrect product selection or pricing issues, remain unclear at the moment. According to reports, Microsoft has been contacted to clarify how transactions are verified and how hallucination risks are handled. While the AI-powered checkout is being marketed as a new development, automated purchasing is not inherently novel. Earlier attempts, such as Amazon's one-tap Dash buttons, tested frictionless purchasing years ago. However, Copilot Checkout represents a renewed effort to integrate conversational AI with real-world commerce on a large scale.