Microsoft has announced new commerce capabilities for its AI ecosystem with the introduction of Copilot Checkout and Brand Agents. The features are designed to support shopping journeys that begin with AI-assisted discovery and progress directly to purchase within the same interaction.
The company stated that shopping behavior has shifted toward conversational decision-making, where users ask questions, compare options, and decide in real time. Copilot Checkout and Brand Agents are intended to address this shift across AI assistants and merchant websites.
Copilot Checkout enables in-conversation purchasing
Copilot Checkout allows users to complete purchases directly within the Copilot experience without being redirected to external websites.
According to Microsoft, the feature supports:
- Product comparison and follow-up questions within a single conversation
- Checkout inside Copilot without a separate browser flow
- Merchants remaining the merchant of record, retaining ownership of transactions, customer data, and customer relationships
Microsoft reported early data from Copilot shopping journeys indicating:
- 53% more purchases within 30 minutes when Copilot is part of the journey
- When shopping intent is present, journeys with Copilot are 194% more likely to result in a purchase
Copilot Checkout forms part of Microsoft’s broader agentic commerce roadmap.
Merchant onboarding and platform support
Microsoft is enabling Copilot Checkout through integrations with Shopify, PayPal, and Stripe.
Merchant onboarding is structured as follows:
- Shopify merchants are automatically enrolled following an opt-out window
- Merchants using PayPal or Stripe can apply to participate
- Microsoft Merchant Center product feeds can be used to improve organic Copilot discovery, though participation is not mandatory
Microsoft stated that once enabled, Copilot Checkout does not require additional integrations.
Launch merchant participation
Microsoft confirmed that Copilot Checkout will support a range of merchants at launch, including Urban Outfitters, Anthropologie, Ashley Furniture, and selected Etsy sellers. Additional merchants are expected to be added over time as the platform expands.
Brand Agents bring AI assistance to merchant websites
Microsoft also introduced Brand Agents, AI-powered shopping assistants designed for deployment on merchant websites.
Brand Agents are designed to:
- Respond in a merchant-defined brand voice
- Guide customers through product discovery and comparison
- Address questions related to shipping, returns, and product fit
- Surface checkout links at appropriate points in the shopping journey
- Support post-purchase recommendations such as add-ons or replenishments
Microsoft said Brand Agents can be deployed within hours and are intended to support customer decision-making without replacing existing site navigation or brand identity.
Brand Agents analytics through Microsoft Clarity
Brand Agents are integrated into Microsoft Clarity, Microsoft’s free website analytics platform.
Merchants using Brand Agents gain access to dashboards showing:
- Engagement rates
- Conversion uplift
- Average order value
- Performance comparisons between agent-assisted sessions and organic traffic
These insights are intended to help merchants evaluate the impact of AI-assisted shopping and adjust site strategies accordingly.
PayPal’s role in Copilot Checkout
PayPal announced that it is partnering with Microsoft to support Copilot Checkout by enabling payment and commerce functions within the Copilot experience.
Through the integration, PayPal supports:
- Surfacing merchant inventory inside Copilot
- Branded checkout experiences
- Guest checkout and credit card payments
- PayPal wallet payments
PayPal stated that merchant catalogs become purchasable through its store sync capability, which is part of its agentic commerce services.
Agentic commerce services and merchant considerations
According to PayPal:
- Buyers and sellers are covered by PayPal protection programs on eligible transactions
- Copilot shopping journeys show higher purchase likelihood when shopping intent is present
- The integration supports open agentic commerce protocols, allowing merchants to connect to multiple AI platforms through a single integration
Merchants interested in enabling agentic commerce experiences can apply through PayPal’s AI platform.
Availability and demonstrations
Copilot Checkout is beginning to roll out in the United States The feature is launching first on Copilot.com and will expand across Microsoft’s Copilot surfaces, including Bing, MSN, and Edge
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Brand Agents are available for Shopify merchants via Microsoft Clarity, with access provided through a waitlist
Microsoft will showcase live demonstrations of Copilot Checkout and Brand Agents at the National Retail Federation (NRF) conference from January 11 to 13
Speaking on the PayPal partnership, Nayna Sheth, Head of Product for Agentic Payments at Microsoft, said:
PayPal’s leadership in commerce, payments, and trusted relationships with hundreds of millions of consumers and merchants over the past 25 years makes it a strong partner. By integrating PayPal’s commerce expertise into Copilot, we are enabling a more direct path from discovery to purchase while creating new opportunities for both merchants and consumers.