Google has unveiled a new pilot program that allows retailers to deliver personalized advertising to shoppers using its AI Mode. The initiative, called “direct offers,” enables brands to present exclusive discounts and deals to consumers actively preparing to purchase items.
Through the pilot, advertisers can select offers within Google’s campaign settings, while Google’s Gemini 3 AI model analyzes contextual cues from shoppers’ conversations and previous clicks to display offers when they are most relevant. Initially focused on discounts, Google plans to expand the program to include bundles, free shipping, and other incentives to help shoppers prioritize value, not just price. Luxury brands may also use the feature to highlight loyalty programs or new member perks, offering a top-of-funnel advertising advantage.
“Google already elevates the most relevant products to meet your search criteria,” the company said in a blog post. “But often, you are only ready to buy if you’re getting a great deal. Now, relevant retailers have an opportunity to also feature a special discount. This helps you get better value and helps the retailer close the sale.”
The pilot is being tested with US-based merchants, including Shopify sellers and brands such as Elf Cosmetics, Petco, and Samsonite. Alongside the personalized offers, Google introduced a Universal Commerce Protocol (UCP) co-developed with Shopify. This protocol allows brands to sell directly within AI Mode, letting shoppers research and purchase products without leaving their AI chat interface. Non-Shopify e-commerce sites in the US can also integrate the feature.
In addition, Google launched a new tool that lets brands embed a branded “business agent” within AI search. Already adopted by retailers like Poshmark and Reebok, the feature allows companies to answer shoppers’ questions in their brand voice, creating a more personalized shopping experience.
The push reflects a growing trend among tech companies to integrate AI-powered checkouts and personal shopping assistants. OpenAI introduced a similar integrated checkout within ChatGPT in September, demonstrating the potential for faster, more accurate product matching, higher conversion rates, and reduced returns.
Google’s focus on personalized discounts is strategic: early data suggests shoppers using AI Mode are motivated by finding the best deals. A Shopify survey leading up to the holiday season found that 64% of consumers planned to use AI for at least one shopping task, 29% for deal-finding, and 20% for inspiration or product discovery. By matching consumers with relevant offers more efficiently than traditional search, Google aims to accelerate adoption of AI shopping tools while boosting retailer sales.
