Microsoft has officially introduced 'Copilot Checkout,' a new AI-powered shopping assistant integrated directly into its Copilot platform. Announced at the NRF 2026 retail conference, this feature aims to streamline the online shopping experience by allowing users to complete purchases without leaving the AI interface. Copilot Checkout is rolling out in the US and integrates with major payment and e-commerce platforms, including PayPal, Shopify, Stripe, and Etsy.

Launch partners include retailers like Urban Outfitters, Anthropologie, and Ashley Furniture. While Microsoft controls the user interface, the retailers remain the merchant of record, retaining all customer data. This move intensifies the competition with OpenAI, which recently launched a similar shopping assistant but has reportedly faced challenges with messy product data.

Microsoft's solution promises a more seamless 'one-click' experience, potentially solving the friction of redirecting users to external merchant sites.