Microsoft turns Copilot into a full shopping and selling platform with new AI tools

Microsoft Copilot

• Microsoft launches Copilot Checkout for in-chat product discovery and purchases
• Copilot partners with PayPal, Shopify, Stripe for payments and fulfilment.
• New AI tools for sellers automate catalogue management and store operations

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Microsoft is expanding the role of Copilot beyond productivity and search by pushing it directly into online commerce. The company has announced a new wave of AI tools designed to help both shoppers and sellers, positioning Copilot as a transactional platform rather than just an assistant.

The headline feature is Copilot Checkout, a new capability that allows users in the US to discover, compare, and purchase products without leaving the Copilot chat interface. Instead of redirecting users to external websites, the entire buying journey can now happen within a single conversation. Shoppers can ask for recommendations, evaluate alternatives, and complete payments directly in Copilot.

To make this possible, Microsoft has partnered with major commerce and payment platforms, including PayPal, Shopify, and Stripe. Early retail partners include brands such as Urban Outfitters, Anthropologie, Ashley Furniture, along with a range of independent sellers on Etsy.

Microsoft has been careful to clarify that it is not becoming the merchant of record. Retailers and sellers will continue to handle payments, fulfilment, and customer data, while Microsoft provides the AI-driven interface that guides users through the purchase. This approach allows Microsoft to embed itself deeper into commerce workflows without directly owning transactions.

Alongside Copilot Checkout, Microsoft is also introducing new tools aimed squarely at online sellers. One of the most notable additions is Brand Agents, an AI tool for Shopify merchants that allows them to deploy AI assistants on their own websites. These agents are trained on a seller’s specific product catalogue and are designed to answer customer questions, provide recommendations, and guide purchasing decisions using the brand’s own tone and style.

Shopify merchants will be automatically enrolled in the new Copilot checkout experience, although they will have the option to opt out. This move suggests Microsoft and Shopify are aiming for scale quickly, reducing friction for sellers while expanding the reach of Copilot-powered shopping.

Microsoft is also rolling out two new agent templates within Copilot Studio, both currently available as public previews. The first is a catalogue enrichment agent, designed to automate product onboarding and catalogue management. It can handle tasks such as categorisation, fixing errors, extracting product details from images, and adding insights from social signals. The goal is to convert messy or incomplete product data into structured information that can power discovery, recommendations, and personalised shopping experiences across platforms.

The second is a store operations agent aimed at physical and hybrid retail environments. This tool allows store managers and staff to use natural language queries to check inventory, understand store policies, and manage day-to-day workflows. It can analyse sales trends, foot traffic, weather patterns, local events, and holidays to suggest staffing levels, operational priorities, and performance improvements.

Microsoft says these AI agents are designed to take over repetitive and time-consuming retail tasks such as inventory tracking, merchandising analysis, and data cleanup. By automating routine operations, retail teams can focus more on strategy, planning, and customer experience. The company also claims that integration with existing systems is straightforward, lowering the barrier for adoption.

Taken together, these announcements signal a broader ambition. Microsoft is positioning Copilot as a central layer for both consumer shopping and merchant operations, blending AI, payments, and commerce into a single ecosystem. If adoption scales as planned, Copilot could become not just a place to ask questions, but a place where buying and selling actually happens.