Microsoft recently launched Copilot Checkout, which will let shoppers complete purchases directly within AI-driven conversations rather than being redirected to external retail sites, and will unveil it publicly this week at the retail industry’s biggest annual event.
The feature is part of Microsoft’s broader push into agentic AI for retail, but the new capability specifically focuses on enabling transactions at a range of merchants without leaving Copilot. The company said that while the tool allows consumers to discover products through Copilot and complete a purchase in the same interface, the retailer from whom the purchase is made will be the merchant of record. Copilot Checkout is currently available in the U.S. on Copilot.com.
Microsoft said the approach is designed to reduce friction at the moment of purchase, as retailers look to capture demand that increasingly originates inside conversational and AI-powered interfaces. The company pointed to a sharp rise in AI-influenced e-commerce activity during the 2025 holiday season as evidence of the trend.
“The retailers that thrive will be the ones that unify their business with intelligence that reaches every corner of the value chain,” Kathleen Mitford, corporate vice president of global industry at Microsoft, said in the release. “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.”
Copilot Checkout is launching with support from payments and commerce platforms including PayPal, Shopify and Stripe. Microsoft said shoppers will initially be able to purchase from a range of retail brands and marketplaces including Anthropologie, Ashley Furniture, Etsy and Urban Outfitters, with additional merchants expected to be added over time. Shopify merchants will be automatically enrolled following an opt-out period, while merchants using PayPal or Stripe can apply to onboard.
Microsoft is demonstrating Copilot Checkout at the National Retail Federation’s 2026 Big Show this week in New York City.