The ecommerce landscape in Australia is undergoing a significant shift. The conversation has shifted from AI as a tool to AI as an agent. We’re now entering a world where AI platforms don’t just power discovery, but also help customers decide and complete purchases within the same interface.
The conversation has moved from AI as a tool to AI as an agent, and we are now entering a world where AI platforms are not just used for discovery, but will help customers decide and even purchase – all within the same
In this article, we break down four key shifts shaping the future of AI in advertising and ecommerce – and what they mean for brands navigating this transition.
1. Google Universal Commerce Protocol (UCP): The Future of Agentic Shopping
Announced in January 2026, the Universal Commerce Protocol (UCP) is perhaps the most game-changing update of the year.
What is UCP?
Think of UCP as a universal language that allows AI agents (like Google Gemini) to talk directly to your store. Instead of a customer visiting your website, looking at a product, and hitting “Checkout”, an AI agent can do that whole process on their behalf without them needing to leave the chat interface.
The Timeline for Australia
UCP is being rolled out now through major partners like BigCommerce, Shopify, and Feedonomics in the US. If you use these platforms, the infrastructure is likely already being integrated into your backend, ready for an Australian launch sometime this year.
What Advertisers Need To Do
UCP will use your product feed data. This means:
- Data Hygiene is Non-Negotiable: To show up in Agentic results, your product feed must be flawless. AI will not guess what your product is made of – it will take this from your structured data.
- Move Beyond Keywords: Fill in every ghost attribute in your Merchant Center and stay on top of new attributes. If the AI cannot verify your product’s specs, it won’t get recommended.
2. ChatGPT Ads: The New Conversational Frontier
OpenAI recently confirmed that advertising is officially coming to ChatGPT. While the platform has been ad-free for years, the introduction of the “ChatGPT Go” tier in Australia (at roughly $13/month) has set the stage for a dual-stream model: premium ad-free experiences and ad-supported free tiers.
Ads will be charged on an impression basis, signalling the shift towards zero-click conversions, and early reports suggest that these won’t be cheap, with a potential $60 CPM.
The Timeline for Australia
- Current Status: Technical trials are currently live in the US (launched January 2026).
- AU Launch: While no exact date has been set, industry benchmarks suggest a local rollout in mid-to-late 2026.
- Where they appear: Ads will primarily appear at the bottom of a chat response as Sponsored suggestions. Crucially, OpenAI has stated that ads will not influence the actual advice that AI gives you, meaning they are helpful additions, not paid biases.
What Advertisers Need To Do
ChatGPT is an LLM, meaning it is not looking to match keywords, but instead matches user-intent
- Speak Human: Stop writing for bots. ChatGPT ads will reward brands that answer specific, conversational questions (e.g., “What is the best reef-safe sunscreen for a toddler?”).
- Focus on Trust: Ensure your brand’s source of truth (your website and public PR) is clear. The AI uses existing web data to validate your brand before showing an ad.
3. Google AI Mode and Overviews: The Search Evolution
Google has officially integrated AI Overviews (the summaries at the top of the page) and AI Mode (the conversational search interface) across Australia as of late 2025.
Where Ads Show Up
Ads in Google’s AI environments are no longer separated. They are now appearing:
- Directly inside the AI Overview: Integrated as “Products to consider” within the summary.
- In Conversational Follow-ups: If a user asks a follow-up question in AI Mode, a relevant Shopping ad can appear as part of the answer.
What Advertisers Need To Do
To appear in these premium AI slots, you must embrace Google’s automation:
- AI Max and PMax: These are the primary vehicles for AI Mode ads. Because AI queries are long and complex, exact match keywords often miss the mark.
- Feed Quality: Google uses your Merchant Center feed to match your products to the context of the AI’s summary. High-quality images and clear, descriptive titles are more important than ever.
4. Meta Agentic Shopping: One To Watch
While nothing has been confirmed here, Mark Zuckerberg recently stated that Meta is moving beyond simple ad recommendations to true AI agents.
Instead of scrolling through a feed and clicking an ad, you might tell Meta, “I need a breathable running outfit for the Melbourne Marathon under $200.” The AI agent searches the catalogues of businesses on the platform, narrows down the best options based on your preferences, and offers to buy it for you right there in the chat.
The Timeline for Australia
- Current Status: Australian businesses are already seeing the foundations via Advantage+ and Meta AI.
- Full Agentic Launch: Nothing is confirmed. Watch this space.
What Advertisers Need To Do
Like on Google, Meta’s AI agents will likely rely heavily on your Meta Commerce Catalogue. If the agent can’t read your product details, it won’t recommend them.
- Master Your Catalogue: Ensure every attribute is filled out accurately.
- Focus on High-Signal Content: Meta’s AI watches your Reels and reads your captions to understand your product’s context. Post content that clearly demonstrates the product in use, as the AI will use these visual signals to match your items to specific user requests.
The transition to AI-driven e-commerce is here, and brands must evolve to stay relevant. Whether it’s ChatGPT’s conversational ads or Google’s UCP, the winners will be the brands that provide the most accurate, structured, and helpful information to the AI.
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