Microsoft unveils infrastructure tools for agentic web as AI agent traffic surges 8,000%

Microsoft wants to build the infrastructure behind the AI internet

Why it matters: The company believes its 51-year history, focused mostly on enterprise solutions, established the trust and scale necessary to build the foundational layers of the agentic web. * "We do not have conflicting interests about operating as a platform," Frank said. "We operate to help our customers succeed, and since that orientation aligns so well with this strategy, we think it's true to us." How it works: The open web was created based on a value exchange between publishers and distributors: Publishers made their content widely accessible for search companies to distribute and both parties made money. * Brands could rely on a balanced marketplace to set fair advertising rates. * Google became the most popular marketplace for those transactions, and its dominance accelerated in the mobile era with Chrome and Android distribution. * That dynamic will not work the same way in the agentic era. State of play: To create a two-sided marketplace that benefits all parties, Microsoft is establishing a set of foundational standards and tools that it hopes will help all AI platforms and publishers align on what constitutes fair use information on the internet. (An example of this type of information would be what time the Sun sets.) * From there, it is building additional layers of infrastructure to sit on top of that baseline that can help publishers, brands and customers transact. * Last year, Axios reported that Microsoft is building a two-sided marketplace that would compensate publishers for content used by AI products, called a Publisher Content Marketplace. * That effort is expanding as more publishers, brands and partners sign on. Between the lines: The PCM aims to help publishers of information that isn't readily available for free on the internet get compensated for citations on AI platforms. * That type of premium information could include map data, product catalogs, news and information, health information, and more. * Microsoft rolled out the PCM to publishers, with its Copilot assistant as the first platform providing demand. The company is in active conversations with other AI platforms to bring their inventory to the marketplace. Reality check: Currently, publishers are striking retrieval augmented generation deals with AI platforms that grant access to this type of content, but those deals typically involve upfront payments instead of a marketplace that serves as an ongoing value exchange. Zoom out: As the premium content marketplace builds out, Microsoft is starting to work on the tools necessary to make it sustainable and easy to transact on. * On Tuesday, it announced support for the Universal Commerce Protocol, an open standard for AI-driven shopping developed by Google in conjunction with other major shopping companies, like Shopify. * It said it will expand its AI-powered checkout system called Copilot Checkout by integrating Shopify's Global Catalog and making more than half a million merchants available to users. It's also adding customer loyalty experiences through companies like Target. * It also announced new insight tools meant to help publishers and advertisers optimize their content based on how it's being crawled and surfaced across the agentic web. It's offering AI-powered ad tools for things like query matching and smarter URL routing. The big picture: Microsoft has built its empire by focusing mostly on enterprise software, while Google has taken the lead on monetizing free consumer products -- like YouTube and search -- through advertising. * Microsoft sees an opportunity to continue owning those enterprise relationships in the AI era. * While it does plan to charge a technology fee to provide access to its services, it won't take a cut of any transactions and will keep the fee low to ensure the marketplace is equitable and scales, per Frank. The bottom line: "We expect this to be a very high-volume marketplace in the future, and so by being a low-cost, highly reliable good piece of infrastructure, we hope and think that businesses, merchants, partners, advertisers will choose us to build on top of," Frank said.

Microsoft unveils tools to build infrastructure for agentic web

Microsoft unveiled a set of tools and standards aimed at establishing infrastructure for the "agentic web," where AI agents conduct transactions independently of human users. The announcement outlines current internet dynamics as a blend of the human web, the LLM web, and the emerging agentic web, according to Tim Frank, corporate vice president for AI monetization. Microsoft's support for the Universal Commerce Protocol in its Merchant Center is a key aspect of this initiative. Co-developed by Google and Shopify and backed by over 20 companies including Visa and Mastercard, this protocol enables AI agents to engage with any merchant across platforms, positioning it as critical for the agent-driven economy. The integration of Shopify's catalog into Microsoft's AI assistant, Copilot, via its commerce API will provide real-time access to millions of merchants' products, including pricing and inventory, without the need for separate feeds. This functionality enhances the capabilities of AI systems to facilitate transactions autonomously. In addition, Microsoft introduced AI Max for Search campaigns to enhance ad delivery on AI platforms like Copilot and Bing. The company also launched "Offer Highlights" ad formats, showcasing selling points like free shipping within AI conversations. A new audience generation tool allows advertisers to define target customers in plain language, allowing for automatic segment construction. Microsoft reported that automated traffic is growing eight times faster than human traffic, with agentic browser traffic surging approximately 8,000 percent year-over-year. This rapid growth underscores the urgency of adopting these new tools. The announcements coincide with increased competition in AI commerce. Target is an early launch partner for loyalty integration in Copilot, while brands like Keen, Pura Vida, and Kyte Baby have begun utilizing Copilot Checkout. Launched in January 2026, Copilot Checkout reportedly shortens AI-assisted shopping journeys by 33% compared to traditional search methods. Frank emphasized that businesses that prepare for agent-based interactions now will gain long-term advantages as demand increases. "The businesses that build for agents now will have compounding advantages as volume scales," he stated.