As 'Agentic Commerce' Gains Ground, Companies Shouldn't Put Too Much Faith in 'GEO'

Agentic commerce is rapidly becoming a focal point for brands and technology companies. Google recently rolled out new e-commerce features in its AI Mode and Gemini chatbot. These tools allow users to make purchases directly through AI agents.

Retailers such as Walmart and Home Depot have already begun adopting these tools. The new system is powered by a "Universal Commerce Protocol," which aims to streamline AI-driven transactions. This development is seen as a major step forward for the AI commerce sector.

However, some experts are cautioning against overreliance on tools like "generative engine optimization (GEO)." While such strategies may improve visibility in AI-driven searches, they may not consistently work across all types of queries. Financial and governance-related information is particularly prone to inaccuracies when processed by AI models.

Why the Move Happened

Google's AI Mode and Gemini are part of a broader push into generative AI. The company is positioning itself as a key player in the next phase of digital commerce. The Universal Commerce Protocol aims to simplify transactions and improve user experience.

Walmart and other major retailers are eager to adopt these tools because of the potential for increased efficiency and customer engagement. Gemini's integration of shopping and customer support functions could reshape how companies operate.

Still, the rollout reflects Google's broader strategy to expand its AI capabilities. This includes recent partnerships and product updates. The company's ability to attract and retain major clients like Apple reinforces its position in the market.

How Markets Responded

The market has reacted to these developments with a mix of optimism and caution. Investors have closely watched Google's resurgence in AI. The company's partnership with Apple pushed Alphabet's market value above the $4 trillion threshold.

However, not all companies are seeing immediate success. Salesforce, for example, has faced skepticism about its AI-driven Slackbot and Agentforce tools. Despite major investments, the company's stock has declined over the past year.

C3.ai has also struggled with growth and profitability. The company's recent earnings reports show continued losses and declining revenue. Analysts have warned that the AI sector is still highly competitive and volatile.

What Analysts Are Watching

Experts are closely monitoring how AI models handle governance and financial queries. Studies by firms like AIVO Standard show that AI systems can provide inconsistent or incorrect information on these topics. This raises concerns for enterprises making major procurement decisions.

The inconsistency is especially problematic in regulated industries like healthcare and finance. If AI models cannot accurately assess risk or governance standards, companies may face legal and reputational risks. This underscores the need for better oversight and transparency in AI-driven decision-making.

Some analysts are also watching how companies respond to these challenges. GEO and similar strategies may evolve, but current results suggest that brands need to approach them cautiously. The AI commerce landscape is still in its early stages, and best practices have yet to emerge.