Microsoft has announced a new suite of agentic AI solutions aimed at bringing intelligent automation across the entire retail value chain—from merchandising and marketing to fulfillment and store operations.

Designed to help retailers move faster and operate with greater precision, the new capabilities introduce a connected layer of intelligence that replaces fragmented workflows with coordinated, context-aware execution. Microsoft positions the offering as a foundation for a unified, intelligence-driven retail operating model built for speed, relevance, and resilience.

“The retailers that thrive will be the ones that unify their business with intelligence that reaches every corner of the value chain,” said Kathleen Mitford, Corporate Vice President of Global Industry at Microsoft. “With Microsoft’s agentic AI, retailers can automate what slows them down and amplify what sets them apart.”

Turning Conversations Into Conversions With Copilot Checkout

A central pillar of Microsoft’s retail push is Copilot Checkout, a new capability that allows shoppers to complete purchases directly within Copilot conversations—without being redirected to external websites.

The launch comes as AI-driven ecommerce traffic continues to surge. Adobe reports that AI-powered ecommerce visits during the 2025 holiday season increased 693% year over year, underscoring the growing importance of frictionless, intent-driven shopping experiences.

Copilot Checkout is now live in the U.S. on Copilot.com, with support from partners including PayPal, Shopify, and Stripe. Early participating brands include Urban Outfitters, Anthropologie, Ashley Furniture, and Etsy sellers.

For Shopify merchants, Copilot Checkout will be enabled by default following an opt-out period, allowing retailers to preserve their checkout experience while meeting customers inside AI-powered discovery flows.

Personalized Shopping Through Brand and Commerce Agents

Microsoft is also introducing Brand Agents for Shopify merchants and a personalized shopping agent template in Copilot Studio. These tools allow retailers to deploy conversational shopping experiences trained on their product catalogs and brand voice.

Brand Agents provide a turnkey option for answering product questions and guiding shoppers, while the customizable shopping agent template enables advanced experiences such as real-time recommendations, outfit building, and cross-channel discovery across web, mobile, and in-store environments.

Retailers including Kappahl Group are already exploring these tools to improve conversion rates and reduce returns by helping shoppers make more confident purchase decisions.

Catalog Enrichment and Smarter Product Discovery

To support discovery and personalization at scale, Microsoft is launching a catalog enrichment agent template in public preview. The agent automatically extracts product attributes from images, enriches listings with social and contextual insights, and streamlines onboarding, categorization, and error resolution.

Brands like Guess see catalog enrichment as a foundational layer for delivering real-time recommendations and cohesive shopping journeys across channels.

AI Agents for Store Operations and Frontline Staff

Microsoft is extending agentic AI beyond digital commerce into physical retail operations. The new store operations agent template, now in public preview, provides store associates and managers with natural-language access to inventory data, policies, and operational insights.

By combining internal data—such as sales trends and foot traffic—with external signals like weather and local events, the agent recommends staffing adjustments, flags exceptions, and suggests next-best actions in real time.

Retailers such as Strandbags are using the solution to empower frontline teams while improving decision-making speed and consistency.

A Broader Shift Toward Agentic Retail

With this launch, Microsoft is signaling a broader shift toward agentic AI as the backbone of modern retail operations. By automating routine workflows across commerce, catalog management, and store operations, retailers can redirect resources toward strategy, innovation, and customer experience.

Microsoft says its approach combines deep enterprise integration with responsible AI development—positioning intelligent agents not just as tools, but as long-term operational partners for retailers navigating an increasingly competitive and AI-driven market.

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