Microsoft Integrates Shopping Directly into Copilot

Microsoft has announced the introduction of Copilot Checkout at the NRF 2026 retail conference. This new feature functions as a shopping assistant embedded directly within the Copilot AI, allowing users to complete purchases without leaving the interface. The rollout is currently underway in the United States, integrating with major payment and e-commerce platforms.

The feature aims to streamline the online shopping experience by removing the need to navigate to external retailer websites. Participating partners include payment processors PayPal, Shopify, Stripe, and Etsy, as well as retailers such as Urban Outfitters, Anthropologie, and Ashley Furniture. Despite the integrated experience, retailers remain the merchant of record and continue to receive customer data.

This move enters a competitive space already targeted by OpenAI, which introduced a similar assistant months prior. However, reports suggest OpenAI has faced difficulties regarding product data accuracy and merchant integration. Microsoft markets Copilot Checkout as a comprehensive solution, though details regarding safeguards against AI errors and transaction handling are currently unknown.

At the NRF 2026 retail conference, Microsoft revealed a new capability for its AI assistant. The company introduced Copilot Checkout, a feature designed to facilitate online shopping directly within the Copilot ecosystem. This development represents a significant step in integrating artificial intelligence with everyday e-commerce transactions.

The core functionality of Copilot Checkout is to eliminate the friction typically associated with online purchasing. Instead of redirecting users to a retailer's website to finalize a sale, the system allows the transaction to occur within the Copilot interface. Microsoft describes this as a way to avoid the "grueling experience" of navigating away from the AI assistant.

Currently, the feature is rolling out to users in the US. To support these transactions, Microsoft has integrated several key payment and platform partners. The system works with:

• PayPal for payment processing
• Shopify for e-commerce backend
• Stripe for payment infrastructure
• Etsy for marketplace integration

Participating retailers at launch include prominent names such as Urban Outfitters, Anthropologie, and Ashley Furniture. Despite the unified interface, the retailers remain the merchant of record. This distinction ensures that the retailers retain responsibility for the transactions and continue to collect customer data.

The introduction of Copilot Checkout places Microsoft in direct competition with OpenAI. OpenAI had previously introduced a shopping assistant for ChatGPT several months ago. However, that initiative has reportedly encountered obstacles. A recent report suggests OpenAI has struggled to integrate merchant partners effectively for its own shopping initiative.

Furthermore, OpenAI has been transparent about the limitations of its technology regarding commerce. The company stated that its shopping assistant "might make mistakes about product details like price and availability." Consequently, OpenAI encourages users to visit merchant sites to verify the most accurate details. This highlights a significant challenge in AI-driven commerce: ensuring data accuracy.

Microsoft appears to be addressing these challenges differently. The company is advertising Copilot Checkout as a solution that allows users to avoid merchant sites entirely. This suggests Microsoft may have developed more robust data handling or integration protocols, though specific technical details have not yet been released. The issue of "messy product data" remains a central hurdle for AI shopping initiatives.

While the integration of AI into shopping offers convenience, it also raises questions about security and accuracy. Currently, there is no public information regarding the specific safeguards in place to prevent AI errors. A primary concern is preventing the AI from "hallucinating"—that is, ordering incorrect items due to misinterpretation of user requests.

For example, there are currently no known mechanisms to prevent the AI from purchasing a giant bounce house when a user intends to order laundry detergent. Microsoft has not yet detailed how the system verifies user intent or handles transaction disputes. It remains unclear exactly how the money is handled during these in-interface transactions.

It is worth noting that the concept of automatic shopping is not entirely new. Over ten years ago, Amazon introduced "1-Click" ordering buttons that allowed users to complete purchases with a single press. The novelty of Microsoft's offering lies in the AI wrapper—the use of natural language processing and conversational AI to facilitate the transaction, rather than a simple button on a webpage.