Microsoft launched Copilot Checkout at the NRF 2026 retail conference this week, enabling purchases directly within AI conversations. The feature is now testing for US users on Copilot.com, with expansion planned across Bing, MSN, and Microsoft Edge.
Users can search for products and complete transactions without leaving the chat interface. Retailers maintain customer data and transaction records while Microsoft controls the user experience. The system leverages the Agentic Commerce Protocol, an open standard developed by OpenAI and Stripe that also powers ChatGPT's Instant Checkout.
Launch partners include Urban Outfitters, Anthropologie, and Ashley Furniture, with Etsy sellers also participating. Shopify merchants will be automatically enrolled following an opt-out window, giving Microsoft immediate access to millions of storefronts through a single integration.
Payment processing integrates PayPal, Shopify, and Stripe. AI-driven ecommerce traffic surged 693 percent year-over-year during the 2025 holiday season according to Adobe data, creating urgency for AI commerce solutions.
Microsoft's consent-based approach contrasts with Amazon's Buy for Me feature, which faced backlash from over 180 businesses for unauthorized product scraping. Amazon expanded from 65,000 products at launch to 500,000 by November 2025 without merchant consent.
Shopify's Agentic Storefronts platform now supports ChatGPT, Perplexity, and Microsoft Copilot, positioning the company as infrastructure for emerging AI commerce. "Copilot Checkout can move a customer from intent to transaction in seconds, all without leaving the conversation," said Mani Fazeli, VP of Product at Shopify.
The market is crowded with competitors. Google launched its own agentic checkout in November 2025 with Wayfair, Chewy, and Quince. PayPal partnered with OpenAI to enable instant checkout within ChatGPT. Visa and Mastercard expect commercial agentic transactions as early as Q1 2026.
AI-driven traffic to US retail sites increased 4,700 percent year-over-year in July 2025 according to Adobe research. Today, 38 percent of consumers use AI when shopping, with 80 percent expecting to use it more according to IAB data compiled by eMarketer.
Security concerns accompany rapid adoption. Visa identified a 450 percent increase in dark web posts mentioning "AI Agent" over the past six months. Malicious bot-initiated transactions rose 25 percent globally, with the US experiencing a 40 percent increase.
Regulators are raising data privacy concerns. "While the potential benefits could be transformational, the public needs assurances their personal information is secure and well managed before placing their trust in agentic systems," said William Malcolm, Executive Director of Regulatory Risk and Innovation at the ICO.
Microsoft is sweetening the deal with additional capabilities. Brand Agents for Shopify merchants provides turnkey solutions for bringing brand voice into digital interactions. Copilot Studio launched personalized shopping agent templates and catalog enrichment templates in public preview.
The company tested a Copilot Wallet feature for storing payment credentials in July 2025. By September, Microsoft launched its Personal Shopping Agent preview built on Copilot Studio for retailers.
"With Microsoft's agentic AI, retailers can automate what slows them down and amplify what sets them apart," said Kathleen Mitford, Corporate Vice President of Global Industry at Microsoft.
Consumer trust remains a challenge. Only 46 percent of shoppers fully trust AI recommendations, and 89 percent still check information before buying according to IAB research. The compressed timeline for AI commerce adoption contrasts with traditional ecommerce evolution.
"Consumer behavior changes that took 10+ years during the rise of ecommerce are now transforming in 12-24 months just as dramatically," said Megan Hoppenjans, Executive Director of Strategy at VML.
Microsoft's merchant-friendly model enters a competitive landscape where consent versus scraping defines platform relationships. The race to establish AI commerce dominance accelerates as adoption outpaces confidence.
