Microsoft has unveiled a suite of agentic artificial intelligence (AI) solutions tailored for the retail sector, aiming to optimize automation in key areas such as merchandising, marketing, store operations, and fulfillment. The announcement was made in a press release on Thursday, January 8, highlighting the tech giant’s commitment to enhancing retail efficiency through advanced AI capabilities.
“With Microsoft’s agentic AI, retailers can automate what slows them down and amplify what sets them apart, enabling faster decisions and stronger customer relationships while building operations ready for whatever comes next,” stated Kathleen Mitford, corporate vice president of global industry at Microsoft.
Among the new offerings is Copilot Checkout, which allows merchants to sell products directly within the Copilot platform, eliminating the need for customers to navigate to external websites. This feature is currently available in the United States via Copilot.com, with onboarding facilitated through partners such as Shopify, PayPal, and Stripe.
A PayPal representative noted that the partnership with Microsoft represents a significant advancement in their strategy to enhance AI-driven shopping experiences for merchants and consumers alike. This collaboration is one of several aimed at integrating AI more deeply into retail operations.
Microsoft’s new offerings also include solutions that enhance agentic commerce on retailer-owned websites. One such solution, Brand Agents, provides a plug-and-play setup for merchants using the Shopify platform. Additionally, the personalized shopping agent template in Copilot Studio offers a customizable framework for retailers seeking to tailor the shopping experience to their clientele.
Another notable feature in public preview is the catalog enrichment agent template, designed to assist merchants in transforming product data into enriched, structured formats more conducive to agentic commerce. This innovation aims to streamline how retailers manage and present their inventory.
The store operations agent template, also in public preview, enables store leaders and associates to utilize a natural language interface for inquiries about inventory availability and store policies. This solution orchestrates workflows while delivering recommendations related to staffing, key performance indicators, and operational priorities.
In the press release, Microsoft asserted that these new agentic AI solutions represent a pivotal shift in the retail landscape, equipping businesses with the necessary tools to anticipate market changes and improve operational efficiency. “This technology enables retailers to deliver experiences that truly reflect their brand values,” the company noted.
Recent reports have indicated a growing trend among tech companies to transition from generative AI to agentic AI, which empowers systems to perform complex tasks autonomously, requiring minimal human oversight. As reported by PYMNTS in January 2025, this evolution marks a significant shift in how AI can shape retail solutions.
In August, PYMNTS highlighted the embedding of AI agents into everyday shopping and enterprise workflows, presenting the potential for hands-off commerce both for consumers and businesses. As the capabilities of AI continue to expand, retailers are increasingly looking to leverage these technologies to enhance customer interactions and streamline their operations.
With these advancements, Microsoft positions itself at the forefront of a rapidly evolving retail landscape, where the integration of AI solutions can redefine the consumer shopping experience and operational efficiency. The broader implications of these technologies extend beyond retail, signifying a transformative period for various sectors poised to adopt similar innovations.
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