Microsoft launches AI automation tools for retail operations

Microsoft Corp. (NASDAQ: MSFT) announced Thursday the launch of artificial intelligence solutions designed to automate retail business functions across merchandising, marketing, store operations and fulfillment.

The company introduced Copilot Checkout, which allows merchants to complete sales directly within Copilot conversations without redirecting customers to external sites. The service is available in the United States through Copilot.com, with PayPal, Shopify and Stripe serving as payment partners. Participating retailers include Urban Outfitters, Anthropologie, Ashley Furniture and Etsy sellers.

Shopify merchants will be automatically enrolled in Copilot Checkout following an opt-out period. "Copilot Checkout can move a customer from intent to transaction in seconds, all without leaving the conversation," said Mani Fazeli, VP of Product at Shopify.

Microsoft also launched Brand Agents for Shopify merchants and a personalized shopping agent template in Copilot Studio. Brand Agents provides conversational shopping experiences trained on product catalogs, while the shopping agent template offers customizable frameworks for retailers.

The company released a catalog enrichment agent template in public preview, which extracts product attributes from images and automates catalog tasks including product onboarding and categorization. A store operations agent template, also in public preview, provides inventory information and policy guidance through natural language interfaces.

Adobe data cited in the announcement showed AI-driven ecommerce traffic increased 693% during the 2025 holiday season compared to 2024. Microsoft stated its solutions address retail industry challenges including high staff turnover and skills shortages.

"The retailers that thrive will be the ones that unify their business with intelligence that reaches every corner of the value chain," said Kathleen Mitford, Corporate Vice President of Global Industry at Microsoft.

The solutions are available through Microsoft Marketplace, with demonstrations scheduled at the NRF 2026 trade show.

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