Google is well-positioned to benefit from the growth of agent-based artificial intelligence, as AI systems increasingly take over shopping, booking, and other online transactions.
The Bank of America Securities believes the internet is evolving away from traditional search and toward AI assistants capable of evaluating options, making decisions, and performing tasks on behalf of users.
Google has expanded its AI offerings through products such as AI Mode, Universal Cart, Search Agents, and e-commerce-focused advertising tools.
According to the report, AI Mode reaches approximately 1 billion monthly users, while AI Overviews serves approximately 2.5 billion monthly users. The company has also implemented features that integrate product search and shopping directly into AI-generated search results. BofA highlighted Google's Universal Commerce Protocol, a framework designed to connect AI assistants with merchants, retailers, and payment providers.
Participants include Shopify, Etsy, Wayfair, Target, Walmart, Visa, Mastercard, and Stripe. The framework is designed to enable AI agents to compare products, check stock availability, and complete purchases on behalf of users.
The report notes that competition in the agent-based AI space is intensifying as companies strive to develop transaction-enabled AI platforms.
Google's competitors include OpenAI, which has expanded its reach through ChatGPT, with nearly 1 billion weekly active users, according to the report. OpenAI is also developing commerce capabilities through its Operator agent and Agentic Commerce Protocol. BofA noted that other tech companies, including Meta Platforms (NASDAQ:META), Amazon (NASDAQ:AMZN), and Anthropic, are actively investing in agent-based AI products and infrastructure.
The report also notes that companies in the e-commerce, travel, and delivery industries are building their own AI tools in an effort to maintain direct relationships with customers.
Companies mentioned include Amazon, Booking Holdings (NASDAQ:BKNG), Expedia (NASDAQ:EXPE), DoorDash (NASDAQ:DASH), and Instacart.
BofA estimates that the growing adoption of agent-based AI is poised to change the face of online commerce as tech companies, retailers, and service providers ramp up investments in AI-powered transaction platforms.