Woolworths is preparing to introduce artificial intelligence agents into its digital shopping experience after partnering with Google to upgrade its Olive chatbot using the Gemini AI platform. The move will make Woolworths the first supermarket in Australia to allow an AI system to actively assist with building grocery orders rather than simply answering questions.

The upgraded Olive assistant will be able to suggest meals, organise weekly meal plans and, with customer approval, place items directly into an online shopping basket. While the system can select and add products, Woolworths confirmed it will stop short of completing purchases, leaving final checkout decisions with customers.

The supermarket group said the enhanced chatbot is expected to launch later this year. Google noted that Gemini has the technical capability to manage the entire checkout process, but Woolworths has chosen a more cautious approach as shoppers adjust to AI-led retail experiences.

The partnership reflects a broader push by retailers to keep pace with rapidly advancing AI tools that could otherwise sit between customers and brands. In the United States, Google has struck similar deals with companies such as Kroger, Lowe’s and Papa Johns, while Walmart has teamed up with OpenAI to enable in-chat purchases through ChatGPT.

ChatGPT has also introduced an Instant Checkout feature, allowing users to search for products such as a housewarming gift under $300 and buy directly from participating retailers with minimal steps. The platform has since expanded agreements with marketplaces including Etsy and is expected to reach millions of Shopify-powered stores.

What sets Olive apart from earlier chatbots is its ability to act rather than redirect. Shoppers will be able to upload images of handwritten recipes, which the AI can interpret to identify ingredients, apply eligible rewards discounts and add the necessary products to the basket. Users can also ask Olive to assemble ingredients for specific dishes or manage a full household grocery list.

Woolworths chief executive Amanda Bardwell said the initiative is designed to reduce friction in everyday shopping. She said the company wants Olive to function as a digital partner that understands preferences, highlights relevant specials and simplifies planning, ultimately saving customers time.

Industry analysts say the success of the rollout will depend on how comfortable shoppers feel handing over practical tasks to AI. MST Marquee analyst Craig Woolford said the technology could make specials easier to find and shopping faster, but uptake will determine whether it delivers meaningful value to Woolworths.

Consumer research suggests younger shoppers may be more receptive. A PwC survey published last year found that 56 per cent of Gen Z consumers were open to using AI-powered services for meal planning and food decisions.

Google Australia managing director Melanie Silva said the collaboration signals a shift from AI as a source of information to AI as an active assistant. She said agents are designed to take the next step by turning requests into actions, helping households manage routine tasks like grocery shopping more efficiently.