Google's Agentic Commerce Protocol Secures Support from Several Backers
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Google has launched the Agent Payments Protocol (AP2), an open-source framework designed to facilitate secure and trusted transactions in agentic AI. The protocol aims to provide a neutral platform for merchants, consumers, and third-party platforms to leverage the power of AI agents in commerce.
The AP2 has garnered significant industry-wide support, with over 60 companies, including Mastercard, PayPal, Coinbase, Adobe, American Express, Alipay, Coinbase, MetaMask, Etsy, Intuit, Salesforce, and others, expressing their backing for the new standard.
Google's goal with AP2 is to offer an open, agnostic framework similar to its recent blockchain launch. The protocol supports multiple payment types, including debit and credit cards, stablecoin transfers, and real-time payments.
While the AP2 incorporates safeguards that create an auditable trail for fraudulent transaction review, questions remain about consumer confidence in agentic commerce, given past AI agent exploitation by bad actors. Don Apgar, Director of Merchant Payments at Javelin Strategy & Research, questions where liability falls when an AI agent operates outside its authorized scope.
To address concerns about potential conflicts of interest, Google has introduced mandates – digital contracts that securely verify an AI agent has followed the user's instructions. In the example provided, a user would sign a mandate detailing the desired price, purchase timing, and other key conditions for an AI agent to buy tickets for the upcoming baseball playoffs. The initiator would then sign a separate mandate granting the AI agent authority to complete the transaction once conditions are met.
Google's initiative to establish a framework for AI agents to operate securely is commendable. However, significant business and financial questions remain for consumers, as Apgar also questions whether consumers can trust that the AI agent is delivering the best deal or steering towards purchases where the agent receives a commission. Apgar references Google's search engine, where companies pay for placement, as an example of potential conflicts of interest.
Despite these concerns, the promise of Google's protocol would mean little without industry adoption. With the strong seal of approval from key players in the industry, the AP2 is poised to become a significant player in the world of agentic commerce. Use cases for AI agents continue to emerge, and the AP2 could play a crucial role in shaping the future of this burgeoning technology.
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