September 12, 2025
Google Cloud Unveils Conversational Commerce Agent to Redefine Retail Shopping
Google Cloud has introduced the Conversational Commerce agent, a new AI-driven solution built on Vertex AI, designed to give retailers more intelligent, personalised ways to engage with customers. As artificial intelligence continues to transform retail, this tool enables businesses to streamline shopping journeys, tailor recommendations, and unlock new opportunities for revenue growth.
Albertsons Companies, a food and drug retailer in the U.S., is the first to adopt the technology, bringing the solution to customers through its Ask AI tool. Available directly in the search bar across all Albertsons banner store apps — including Safeway, Vons, Jewel-Osco, Shaw’s, ACME, and Tom Thumb — the tool helps shoppers plan meals, discover new items, and fill their baskets more quickly and intuitively.
“The future of retail is personal, predictive, and effortless, and AI is the key to unlocking it,” said Paul Tepfenhart, global director of Retail at Google Cloud. “Albertsons has been a phenomenal partner, helping us push the boundaries of what’s possible with AI. The grocer is already seeing powerful results with our new Conversational Agents for Commerce tool, and we’re excited to bring this innovation to the rest of the industry.”
From Traditional Search to Conversational Shopping
Conversational Commerce agent reflects the long-standing collaboration between Google Cloud and Albertsons, expanding their shared vision for innovation in retail. The AI solution is designed for retailers across sectors, from grocery to home improvement, and provides a conversational experience that mimics the helpful guidance customers expect in physical stores.
Instead of responding with static search results, the agent engages in real-time conversations, recognising intent, refining queries, and offering personalised product recommendations. For shoppers, it feels more like an ongoing dialogue than interacting with a traditional chatbot.
Key Capabilities of Conversational Commerce Agent
Leveraging Google’s Gemini models, the agent tailors search results by understanding preferences and intent. For instance, a shopper looking for snacks can specify “sweet” or “salty,” and the AI responds with relevant options, often suggesting complementary items that customers might not have otherwise discovered. Early adoption at Albertsons shows many users add extra items to their baskets after interacting with Ask AI.
In addition, customers can refine their searches naturally through guided prompts, with the agent adapting seamlessly as they clarify their needs.
The solution also handles complex queries such as product comparisons and resolves ambiguity by asking follow-up questions to narrow down results. With safeguards, curated data, and feedback systems, the Conversational Commerce agent ensures shoppers receive reliable, responsible recommendations.
By creating more dynamic, tailored shopping experiences, the platform drives bigger baskets, deeper engagement, and stronger sales. In fact, over 85% of Ask AI interactions at Albertsons begin with open-ended exploratory questions — underscoring the demand for guided discovery.
For retailers, the Conversational Commerce agent offers more than operational efficiency, providing a pathway to strengthen loyalty by giving shoppers a sense of curated, personal attention at scale. As customers increasingly expect seamless, intuitive digital shopping, AI solutions like this signal a broader shift in how businesses will compete for consumer trust and engagement.
