Algolia has announced a new collaboration with Microsoft that aims to improve how products appear across AI driven shopping experiences, a move that reflects how discovery is shifting beyond brand owned websites. The news matters for the MarTech ecosystem because as more consumers rely on AI assistants to shop, retailers need accurate, trusted product data to stay competitive in these emerging environments.
The Algolia Microsoft collaboration integrates Algolia real time enriched product attributes into Microsoft Copilot, Microsoft Bing Shopping, and Microsoft Edge. By delivering up to date product data, inventory availability, and pricing directly into these AI surfaces, the partnership helps retailers ensure their offerings are represented correctly when shoppers search and compare products through conversational and agent based tools.
This shift comes as nearly 60 percent of consumers in the United States now use AI tools during the shopping process. As a result, first impressions of products are increasingly happening away from retailer owned sites. Outdated feeds and legacy crawling methods often surface stale information, which can erode shopper trust and lead to lost conversions. Algolia and Microsoft are positioning their collaboration as a way to close that gap with fresher and more reliable data.
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“AI has changed how consumers shop, and retailers want a voice in how their products appear in that new world,” said Piyush Patel, Chief Ecosystem Officer at Algolia. “Together with Microsoft, we’re ensuring retailers don’t lose control of their story as shopping moves into agentic and conversational experiences on off site and off property sites.”
Through the integration, Algolia customers gain more control and visibility across Microsoft shopping environments. Retailers benefit from stronger brand representation and improved context awareness within Copilot, Bing Shopping, and Edge. Early customer pilots involving companies such as Frasers Group, JTV, Little Sleepies, and Shoe Carnival and Shoe Station show that aligning product attributes with natural language queries can unlock new discoverability opportunities.
Jennifer Myers, head of strategic partnerships for Microsoft Shopping, emphasized the importance of transparency for merchants. “Retailers shouldn’t be forced to adapt to opaque AI systems, instead they should help shape them. Algolia’s real time data foundation helps us deliver trustworthy, high quality shopping experiences across Copilot, Bing, and Edge.”
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Beyond discovery, the Algolia Microsoft collaboration has implications for retail media and merchandising strategy. By extending approved product data into external AI environments, retailers can influence how their products are positioned in spaces that were previously difficult to manage. This also reduces the risk of out of stock or inaccurate offers appearing in AI driven results, which strengthens confidence in conversational shopping experiences.
Patel noted that the integration can also inform merchandising and media decisions by providing insight into how products perform across Microsoft AI surfaces. Over time, this foundation could support richer reporting and more advanced retail media measurement as agent based commerce continues to evolve.
The companies plan to share more details at NRF 2026, where leaders from Algolia, Microsoft, and Frasers Group will discuss the impact of the partnership during a session focused on AI native shoppers. As AI discovery accelerates, the Algolia Microsoft collaboration highlights how real time product data is becoming essential to shaping the future of digital commerce.
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