{"id":15148,"date":"2025-05-15T16:50:49","date_gmt":"2025-05-15T16:50:49","guid":{"rendered":"https:\/\/topat10.com\/?p=15148"},"modified":"2025-05-15T16:50:49","modified_gmt":"2025-05-15T16:50:49","slug":"the-invisible-tech-revolution-poised-to-make-in-chat-ai-shopping-real","status":"publish","type":"post","link":"https:\/\/topat10.com\/?p=15148","title":{"rendered":"The invisible tech revolution poised to make in-chat AI shopping real"},"content":{"rendered":" \r\n

Welcome to Eye on AI! In this edition…The UAE closes in on a deal for advanced Nvidia chips days after Saudi Arabia’s Humain strikes a similar agreement…Google DeepMind introduces AlphaEvolve, a coding agent that can design its own advanced algorithms…and China restricts schoolchildren\u2019s use of generative AI.<\/em><\/p>\n\n\n\n

For those who read my ‘I hate shopping’ manifesto<\/a> in Eye on AI a few weeks back, where I shared how ChatGPT became more helpful for my style quests than Google, there was an obvious follow-up: What if I could make purchases in my AI chat? <\/p>\n\n\n\n

When I started writing about the early versions of AI agents two years ago, that was the holy grail developers pointed to\u2014shopping. For some reason, though, they were always interested in how to have an AI agent buy your pizza, not pick out and order the best dress for that summer wedding next month. <\/p>\n\n\n\n

But pizza or not, those early efforts mostly fizzled, because there were so many seemingly insurmountable hurdles. Early agent efforts in 2023, like Auto-GPT and BabyAGI, were primarily focused on surface-level web manipulation\u2014that is, having an agent operate a web browser and the user\u2019s computer keyboard and mouse, and giving it access to a file with passwords and credit card data. But even the best AI systems can misinterpret website layouts, leading to transaction failures, and AI computer usage tools are relatively slow. Having a file sitting around with all your password and credit card data also creates cybersecurity risks. 

Giving the AI direct access to vendors\u2019 backend systems would be a simpler, and better, way to enable agentic commerce. But every vendor’s backend\u2014like a pizza place\u2019s payment processing, a bookstore shopping cart, Amazon\u2019s inventory\u2014is its own walled garden that needs logins and authentication. There was the lack of persistent memory for AI agents, who might not remember where you left off while picking out that dress. Then there\u2019s payment information\u2013not surprisingly, most of us are reluctant to hand over our financial information to AI agents, and anyway, how could ChatGPT handle credit card or Venmo transactions anyway? <\/p>\n\n\n\n

This technology is changing the AI shopping game<\/strong><\/h3>\n\n\n\n

That\u2019s all changing now, thanks to an under-the-radar AI revolution called Model Context Protocol (MCP). Developed<\/a> by Anthropic last November, the MCP architecture allows AI agents to \u201cremember\u201d context, execute transactions, and manage interactions in real-time across multiple platforms. With a standardized layer connecting to payment gateways, e-commerce inventories and financial services, AI agents are on the brink of being able to do far more than just window-shop. <\/p>\n\n\n\n

Of course, for this to work, all the different parties involved have to agree to use MCP. That\u2019s happening: Over the past two months, Google, Microsoft and OpenAI have all agreed to use MCP. Payment processors have followed suit: Visa is also partnering with Anthropic, Microsoft, Mistral, OpenAI, Perplexity, and other leading tech players to bring seamless payment capabilities directly into AI chatbots, while MasterCard also announced the launch of its agentic payments program called Agent Pay. Stripe and Block (formerly Square) have gotten on board with MCP as well, and yesterday, PayPal announced<\/a> a partnership with AI search startup Perplexity to power agentic commerce in its Pro platform. Starting this summer, the company said consumers can check out with PayPal or Venmo when they ask Perplexity to find products, book travel, or buy tickets.\u00a0<\/p>\n\n\n\n

However, retailers have not jumped on board as fast as the payment processors. One company, Retail-MCP.com, has created a managed MCP service for retailers, but it\u2019s not clear any major brand has launched an MCP server yet. But it will no doubt happen. <\/p>\n\n\n\n

For PayPal, agentic e-commerce is coming fast<\/strong><\/h3>\n\n\n\n

I spoke yesterday with Prakhar Mehrotra, PayPal’s head of AI, who told me that Anthropic’s release of MCP marked the moment he realized agentic e-commerce was becoming a reality. <\/p>\n\n\n\n

\u201cThe unsolved problem was how two agents could communicate with each other,\u201d he said. First, he explained, the AI needs to understand what you want to do\u2014like booking a flight to Paris or reserving a table at a restaurant. But then other agents need to work together: One agent might handle flight booking, for example, while another handles a local dinner reservation and a third tackles payment processing for both. Until now, agents could not communicate with each other, so a chatbot could only recommend\u2014not complete the actual purchase on multiple platforms. <\/p>\n\n\n\n

Now, six months after the release of MCP, the age of \u201cidentity commerce\u201d is upon us, Mehrotra said\u2013that is, AI\u2019s ability to handle user transactions that are secure and personalized across platforms, so agents can complete real-time purchases without any manual logins (and without having to use a web browser; MCP works by directly transmitting data back and forth in a standardized protocol between the AI agent and an MCP server operated by a retailer that is seperate from the one hosting its e-commerce website). <\/p>\n\n\n\n

According to PayPal, the entire AI-powered shopping process\u2014from payment and shipping to tracking and invoicing\u2014will happen in the background. It will connect directly to your PayPal or Venmo account, using emerging technology that securely stores your payment details and lets you check out with just a single click or voice command\u2014without the need for passwords. <\/p>\n\n\n\n

It\u2019s still a little hard for me to imagine using Venmo or Visa to buy a new outfit using Perplexity or ChatGPT. But I\u2019ll be an early AI shopping adopter, no doubt\u2013and I\u2019ll let you know how it goes.<\/p>\n\n\n\n

With that, here\u2019s the rest of the AI news.<\/p>\n\n\n\n

Sharon Goldman<\/strong>
sharon.goldman@fortune.com<\/a>
@sharongoldman<\/a><\/p>\n

This story was originally featured on Fortune.com<\/a><\/p>\r\n
\r\n","protected":false},"excerpt":{"rendered":"

Welcome to Eye on AI! In this edition…The UAE closes in on a deal for advanced Nvidia chips days after Saudi Arabia’s Humain strikes a similar agreement…Google DeepMind introduces AlphaEvolve, a coding agent that can design its own advanced algorithms…and China restricts schoolchildren\u2019s use of generative AI. For those who read my ‘I hate shopping’ […]<\/p>\n","protected":false},"author":775,"featured_media":15149,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[123],"tags":[],"class_list":["post-15148","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"yoast_head":"\nThe invisible tech revolution poised to make in-chat AI shopping real | Unlock Informed Choices with Us<\/title>\n<meta name=\"description\" content=\"Anthropic's Model Context Protocol allows AI models to hook directly into retailers' and payment processors' systems in a secure and reliable way.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/topat10.com\/?p=15148\" \/>\n<meta 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In this edition…The UAE closes in on a deal for advanced Nvidia chips days after Saudi Arabia’s Humain strikes a similar agreement…Google DeepMind introduces AlphaEvolve, a coding agent that can design its own advanced algorithms…and China restricts schoolchildren\u2019s use of generative AI. 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