Microsoft Introduces AI-Powered Shopping via Copilot, Reshaping E-Commerce Transactions
Microsoft is launching a new AI-powered shopping and checkout experience through its intelligent assistant Copilot, a move that could reshape where e-commerce transactions occur and who controls the customer journey.
The announcement comes as tech giants compete to make AI assistants the primary gateway to the internet. If payments are completed inside AI chat interactions, retailers may lose direct contact with customers, while platforms like Microsoft gain greater influence, according to a report by Axios, cited by Al Arabiya Business.
During NRF 2026, Microsoft unveiled new AI tools for retailers, including Copilot Checkout, which allows shoppers to complete purchases directly within Copilot without being redirected to the retailer’s website. The feature is currently available in the United States, integrated with Shopify, PayPal, Stripe, and Etsy.
Microsoft expects that AI-powered shopping will accelerate purchase decisions. Data from Adobe shows that traffic to retail sites via generative AI tools surged over 693% during the 2025 holiday season, demonstrating the rapid adoption of AI-assisted shopping.
Copilot competes directly with Amazon, Google Shopping, and social commerce platforms. The app has over 100 million monthly active users, while more than 800 million users interact with AI features across Microsoft products. Shopping journeys involving Copilot are 33% shorter and see a 53% increase in purchases within 30 minutes, with a 194% higher likelihood of purchase compared to traditional searches.
Microsoft also announced AI shopping agents, trained on brand catalogs, and store operation agents that provide recommendations on staffing and inventory based on real-time data. While Copilot has about 100 million monthly users, it remains smaller than ChatGPT, which reportedly has around 800 million weekly users.