Retailers are placing bigger bets on agentic AI commerce in 2026. However, this move comes with risks. Retailers like Etsy, Target, and Walmart are joining platforms such as Google’s Gemini and Microsoft’s Copilot. Their goal is to meet consumers where they are. But these decisions might result in losing data control and direct access to customers.
Amazon and Walmart have already built their own AI assistants, Rufus and Sparky, to interact with consumers. But experts are concerned that this shift in retail could disrupt traditional practices, much like the internet did years ago.
Retailers Move to External AI Platforms
In January 2026, Etsy, Target, and Walmart began offering their products on external AI platforms. They’ve partnered with Google’s Gemini and Microsoft’s Copilot to expand their reach. This move builds on previous efforts to work with OpenAI’s ChatGPT, allowing consumers to purchase products directly from these platforms.
The retailers believe that this partnership is necessary to stay competitive. Walmart’s incoming CEO, John Furner, spoke about the importance of being present where consumers are already shopping. Retailers now see this shift as essential for maintaining relevance.
AI’s Surge in E-Commerce Traffic
AI-driven traffic to e-commerce sites has surged. According to Adobe’s 2025 Holiday Shopping report, AI traffic to U.S. retail sites grew 758% year-over-year from Nov. 1 to Dec. 1, 2025. The spike was even higher on Cyber Monday, with a 670% increase.
Experts believe that as AI shopping tools become more common, consumer engagement will continue to grow. Katherine Black from Kearney believes that as AI shopping experiences improve, more consumers will use them regularly.
Risks: Data Ownership and Disintermediation
The rapid growth of AI commerce brings concerns. One major risk is losing control over customer data. When customers shop on external AI platforms, retailers may not be able to track their journey. Retailers could miss valuable insights, like search history and product interactions.
According to Wharton’s Kartik Hosanagar, external AI platforms could shift the power dynamics in retail. Whoever controls the AI agents holds significant influence over customer interactions. This change could reduce the retailer’s role in direct relationships with customers.
A Deloitte report shows that 81% of retail executives believe AI will weaken brand loyalty by 2027. As more brands partner with external platforms, this risk grows.
Google’s New AI Tools for Retailers
At the NRF conference, Google’s Sundar Pichai showcased tools for retailers to integrate AI chatbots like Gemini. These tools help customers from discovery to purchase. Google’s AI offerings aim to make the shopping journey smoother.
However, these tools also raise concerns. As external platforms gain more influence, retailers might lose control of their data and relationships with customers. As AI becomes more integrated into shopping, balancing these benefits and risks will be key.
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