Microsoft pushes agentic AI into retail as automation moves from pilots to execution
New tools spanning merchandising, marketing and store operations aim to turn fragmented retail workflows into coordinated, context-aware systems, with Copilot Checkout already live in the U.S.
Microsoft has unveiled a suite of agentic artificial intelligence solutions designed to automate workflows across the retail value chain, signalling a shift from experimental AI features towards systems that actively coordinate day-to-day execution.
The company said the new capabilities create a connected layer of intelligence that links merchandising, marketing, store operations and fulfilment, replacing siloed processes with context-aware tools that can anticipate needs and take action. Microsoft positioned the approach as a response to the operational complexity facing retailers, where data and decision-making are often fragmented across teams and systems.
At the centre of the announcement is Copilot Checkout, which allows shoppers to complete purchases directly within Microsoft Copilot without being redirected to a separate merchant site. The feature is now available in the U.S. on Copilot.com, with partners including PayPal, Shopify and Stripe. Participating merchants include Urban Outfitters, Anthropologie, Ashley Furniture and sellers on Etsy.
Rafe Colburn, chief product and technology officer at Etsy, said the integration aligns discovery and purchase more closely. “By bringing Etsy’s unique inventory to Copilot Checkout, we’re meeting buyers at the moment intent becomes action,” he said, adding that the integration allows sellers to reach new surfaces without additional work while preserving the human element of commerce.
Beyond checkout, Microsoft is expanding a range of retail-focused agents built on Copilot. Brand Agents for Shopify are designed to represent merchants across AI-driven shopping experiences, while a personalised shopping agent template in Copilot Studio allows retailers to tailor AI guidance to their own brands and customers.
The company has also launched several agent templates in public preview aimed at core retail operations. A catalogue enrichment agent can extract product attributes, incorporate social insights and automate routine catalogue management tasks. A store operations agent provides a natural language interface for associates, orchestrating workflows and analysing signals such as sales trends, foot traffic, weather and local events to support real-time decision-making on the shop floor.
Retailers testing the tools framed them as a way to balance automation with better customer outcomes. Jenny Jidborn, IT manager at Kappahl Group, said Microsoft’s personalised shopping agent template offers a flexible foundation for AI-powered guidance that fits different brands. She said it supports higher conversion while reducing returns by helping customers make more confident product choices.
Microsoft said retailers can explore the new agent solutions through Microsoft Marketplace and learn more via its Microsoft for Retail programme. The company and its partners will demonstrate the tools at NRF 2026, underscoring its push to position agentic AI not as a future concept, but as operational infrastructure for modern retail.
The Recap
- Microsoft announced agentic AI for every retail function.
- Copilot Checkout available in the U.S. with PayPal and Shopify.
- Microsoft will exhibit at NRF 2026 booth #4503.
