On January 8, 2026, Microsoft and PayPal announced that they had partnered to create Copilot Checkout — an AI shopping experience where you don’t have to leave Microsoft’s Copilot AI chatbot to make purchases.
This is one of the latest moves toward agentic AI, specifically in the realm of agentic commerce services, which is a future where AI programs autonomously help people with tasks based on their behaviors, such as shopping.
Microsoft’s official announcement states:
“Copilot Checkout will enable merchants to reach shoppers as they complete purchases discovered directly within Copilot without being redirected to external sites. Copilot Checkout turns conversations into conversions — instantly. No redirect, no friction, and merchants stay the merchant of record… Trusted partners enabling this experience include PayPal, Shopify and Stripe. Shoppers will be able to purchase from leading retail brands such as Urban Outfitters, Anthropologie and Ashley Furniture, and discover unique and handmade items from Etsy sellers with many more joining soon.”
For example, imagine you’re in Copilot asking the AI chatbot for a good furniture recommendation. After getting some details from you to know what you’re looking for, Copilot might suggest a specific set that meets your needs. You can then click on the recommendation and immediately see how much it will cost with shipping and tax, complete with a button that allows you to pay via PayPal. And it all happens without leaving the chatbot.
As part of this new service, Microsoft revealed that retailers can influence their Brand Agents to reflect a “brand’s voice” when giving shopping guidance. It seems there will be an opt-out window, but otherwise, merchants at Shopify and other participating commerce sites will automatically get enrolled in this Copilot Checkout experience.
By teaming up with Microsoft, we’re enabling merchants to become AI-ready and enabling scale through Copilot’s trusted commerce infrastructure. This partnership will help our vast ecosystem of tens of millions of merchants grow efficiently, while providing consumers with an enjoyable and intuitive shopping experience when checking out with PayPal.
Mike Edmonds, VP of Agentic Commerce, PayPal
So why are companies making this shift toward agentic AI and AI-shopping experiences? As you probably already know, AI has been one of the biggest focuses for major companies over the last few years. They’re in a race to figure out the best new agentic AI possibilities before their competitors do. And, changing consumer behaviors have also encouraged these new services.
According to Adobe, the 2024 holiday season saw an increase of 693% when it came to AI-driven purchases. As such, it makes sense that this could be the next stop on many AI-focused companies’ roadmaps.
Copilot Checkout is rolling out now in the U.S, so you can try it out for yourself once it becomes available.
How do you feel about Copilot Checkout and agentic AI? Is this something you like and want to see more of? Tell us about it in the comments.
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