Microsoft has introduced Copilot Checkout at the NRF 2026 retail conference, enabling users to complete purchases directly within the Copilot interface without visiting retailer websites. The feature is rolling out in the United States and integrates with PayPal, Shopify, Stripe and Etsy. Participating retailers include Urban Outfitters, Anthropologie and Ashley Furniture.
According to Microsoft, the company also launched Brand Agents, AI assistants that help customers discover and purchase products through conversational interactions. Microsoft describes these agents as meeting shoppers where they are, asking follow-up questions and comparing products based on customer preferences and intent. The agents can answer questions about shipping or returns, recommend complementary products and support post-purchase moments.
Retailers maintain their status as merchant of record and continue to receive customer data. Microsoft controls the interface. The company has not disclosed what safeguards prevent potential AI errors during purchase transactions.
Brand Agents insights, built into Microsoft Clarity, provide analytics on engagement rates, conversion rates and average order value. Microsoft Clarity is a free analytics tool that helps merchants understand shopper behavior through heatmaps and session replays.
OpenAI introduced a similar shopping assistant several months earlier, though the company warned that its assistant might make mistakes about product details. A report from The Information suggests OpenAI has faced challenges integrating merchant partners for its shopping initiative.
Sources: Microsoft Advertising Blog, Engadget
