Microsoft launches Copilot Checkout as AI shopping race against OpenAI and Google intensifies
12 Sources
[1]
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
[2]
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
[3]
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
[4]
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
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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,
[6]
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
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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
[8]
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
[9]
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
[10]
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
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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
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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
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Microsoft unveiled Copilot Checkout at NRF 2026, allowing users to complete purchases directly within the AI chatbot without visiting retailer websites. The feature launches in the US with Shopify, PayPal, Stripe, and Etsy integrations, joining OpenAI's ChatGPT and Google's Gemini in the emerging AI shopping race. Microsoft claims shopping journeys involving Copilot are 194% more likely to result in purchases when shopping intent is present.
Microsoft Copilot Introduces Buy Buttons Directly in Chat Interface
Microsoft has officially entered the AI shopping race with the launch of Copilot Checkout, a feature that allows users to complete purchases directly within the AI chatbot without being redirected to external websites
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. Announced at NRF 2026, the retail industry's annual conference in New York, the feature is now rolling out in the US on Copilot.com with integrations from PayPal, Shopify, Stripe, and Etsy3
. The move positions Microsoft Copilot directly against OpenAI's ChatGPT and Google's Gemini, both of which have launched similar in-chat checkout capabilities in recent months.
Source: PYMNTS
When users ask for product recommendations—such as searching for a small lamp for a bedside table—the AI-powered shopping assistant responds with suggestions accompanied by "Details" and "Buy" buttons
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. Hitting the buy button pulls up a checkout screen where customers can enter shipping and payment information without leaving the conversation. Participating retailers at launch include Urban Outfitters, Anthropologie, Ashley Furniture, and select Etsy sellers1
.
Source: GeekWire
The Growing Trend of Chat-Based Commerce and AI Agents
The launch of Copilot Checkout reflects a broader industry shift toward chat-based commerce, where AI agents handle shopping on behalf of customers. OpenAI introduced Instant Checkout in ChatGPT last September, partnering with Shopify and Stripe to connect users with more than a million merchants
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. Google followed in November with its own "Buy for Me" feature in Search and AI Mode1
. However, OpenAI has reportedly struggled with merchant integration, with high-profile partners not yet available and others still waiting for details to join4
.Microsoft's approach emphasizes retailer control and data ownership. "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
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. Retailers remain the merchant of record, handling fulfillment and customer service, while Microsoft controls the interface2
. This distinction matters because unlike Amazon and Google, which compete directly with retailers through their own marketplaces, Microsoft isn't a retailer and can leverage its existing enterprise technology footprint3
.
Source: Benzinga
Shopify Merchants Face Automatic Enrollment Following Opt-Out Window
One notable detail is that Shopify merchants will be automatically enrolled in Copilot Checkout "following an opt-out window," with Shopify managing the opt-out process for its merchants
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. This automatic enrollment echoes the backlash Amazon faced over its "Buy for Me" feature, where brands complained about being included without consent and seeing inaccurate listings. Businesses using PayPal or Stripe for payment processing will need to submit an application to become a Copilot Checkout merchant5
.Questions remain about safeguards against AI hallucinations—instances where the AI might make mistakes about product details like price and availability
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. OpenAI previously acknowledged that its shopping assistant "might make mistakes" and encouraged users to visit merchant sites for accurate details2
. Microsoft is advertising Copilot Checkout as a way to avoid the merchant site entirely, though the company has not yet detailed what safeguards are in place2
.Direct Shopping Experiences Show Dramatic Conversion Improvements
Microsoft is backing its push into AI shopping with compelling data. According to the company, shopping journeys involving Copilot are 33% shorter than traditional search paths and see a 53% increase in purchases within 30 minutes of interaction
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. When shopping intent is present, journeys involving Copilot are 194% more likely to result in a purchase than those without it4
. These metrics suggest that direct shopping experiences through AI agents could significantly alter e-commerce conversion rates.Adobe data reinforces this shift: traffic to retail sites from generative AI tools jumped more than 693% during the 2025 holiday season
4
. Mitford predicted that consumer adoption will eventually match the rapid uptake seen in the business world, drawing a parallel to how quickly businesses moved from experimenting with AI to putting it into operation over the past year.Related Stories
Brand Agents and AI Tools for Retailers Expand Microsoft's Offering
Beyond Copilot Checkout, Microsoft also announced Brand Agents at NRF 2026—AI-powered shopping assistants that merchants can deploy on their own websites
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. These AI agents are tailored to each merchant's needs, responding in their brand voice while guiding customers through product discovery, answering questions, and surfacing checkout links5
. Merchants get access to a dedicated dashboard with insights including engagement rates, conversion uplift, average order value, and performance comparisons between agent-assisted sessions and organic traffic5
.Microsoft also unveiled AI tools for retailers that auto-enrich product data from images and store-operations agents that recommend staffing and inventory decisions based on real-time data
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. A Microsoft-commissioned study from IDC found that retail and consumer packaged goods companies are seeing a 2.7x return on every dollar spent on generative AI.Market Position and the Question of Consumer Adoption
Despite its enterprise advantages, Microsoft is playing catch-up on the consumer side. Copilot apps have more than 100 million monthly active users across consumer and commercial audiences
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, but this trails ChatGPT's much larger user base of about 800 million weekly users4
. Recent data from Similarweb's Global AI Tracker showed ChatGPT with about 68% of AI chatbot web traffic, Google Gemini at 18%, and Copilot in the single digits.The bigger question is whether chat-based commerce represents a genuine shift in consumer behavior. Forrester analyst Sucharita Kodali previously told GeekWire that "e-commerce isn't a problem that needs to be fixed," questioning what value chat-based commerce brings to retailers "other than disintermediating Google". If checkout happens inside AI conversations, retailers risk losing direct customer relationships while platforms like Microsoft gain leverage
4
. Much of Microsoft's announcement centers on templates, previews, and promises rather than proven adoption4
, making the actual impact on shopping behavior something to watch closely in the coming months.References
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