Tech Companies Are Churning Out Agentic AI Tools, but Agencies Are Still Scratching Their Heads

Why It Matters

Agentic AI promises faster, cheaper commerce and media transactions, but its success hinges on data quality, industry standards, and robust governance frameworks.

Key Takeaways

• Google launches Universal Commerce Protocol for standardized AI shopping
• Agentic media buying cuts costs up to 80% in tests
• Brands must supply rich product data for AI agents
• Agencies face governance and regulatory challenges with agentic AI
• 66% agencies focus on AI; 40% cite usage uncertainty

Pulse Analysis

The recent "AI Bowl" at the Super Bowl underscored how agentic artificial intelligence has moved from niche labs to mainstream consumer awareness. Major platforms such as Google and Meta are not only showcasing flashy ads but also delivering infrastructure—Google’s Universal Commerce Protocol (UCP) and Business Agent—to standardize how AI assistants retrieve product information and complete purchases. By integrating UCP with Google Search’s AI Mode and Gemini, the tech giants aim to turn conversational queries into frictionless checkout flows, a shift that could redefine the retail funnel.

For merchants, the new data attribute extensions in Google Merchant Center signal a strategic pivot toward richer, structured product content. Retailers that feed detailed specifications, FAQs, and accessory data enable AI agents to answer nuanced shopper requests, from “lightweight summer wedding suits” to hyper‑specific travel queries like dog‑friendly restaurants in Milan. Companies such as Booking Holdings and Shopify are already leveraging these capabilities, embedding agentic storefronts into platforms like ChatGPT and Perplexity to meet niche consumer demands and accelerate discovery across multiple touchpoints.

On the advertising side, agencies are cautiously experimenting with agentic media buying. Early pilots, including Butler/Till’s partnership with PubMatic, have demonstrated up to five‑fold cost efficiencies and an 80% reduction in intermediary fees. However, a recent IAB survey reveals that while two‑thirds of agencies are exploring AI‑driven buying, 40% cite uncertainty around practical use cases and compliance. As brands in regulated sectors demand tighter governance, agencies are establishing dedicated units to ensure accuracy, accountability, and data privacy, setting the stage for broader adoption once standards solidify.