Microsoft has introduced a new feature named Copilot Checkout, allowing users to make purchases directly within its AI chatbot, enhancing the shopping experience without redirecting to external sites. This initiative aims to capitalize on the company's established relationships with major retailers, positioning itself competitively against other tech giants like OpenAI and Amazon.
According to Kathleen Mitford, the corporate vice president of global industry marketing at Microsoft, retailers maintain control over their customer relationships and data, which is a crucial aspect of this feature. This rollout is part of a larger AI initiative showcased at NRF 2026, the annual retail conference in New York, where Microsoft is also launching Brand Agents to help Shopify users integrate AI assistants into their online stores.
The Copilot Checkout feature operates by displaying products from partner retailers in the Copilot search results, allowing customers to finalize purchases within the chat interface. Retailers continue to handle fulfillment and customer service, maintaining their role as the merchant of record.
Despite the innovative approach, questions remain about the effectiveness of chat-based commerce. While some industry analysts express skepticism about its value to retailers, Microsoft remains optimistic about evolving consumer behaviors in the shopping landscape.