Agentic Commerce Raises Compliance Concerns

AI developers are seeking to change the way people work and live. In many cases, companies are developing semi-autonomous “AI agents.” These agents, if effective, could upend the way online commerce operates. Imagine being able to tell your AI agent that you need a new computer and would like it to pay the lowest price for certain specifications. The agent could then search the internet, find the best option, and complete the transaction. While this sounds convenient in theory, early attempts to actualize it have produced mixed, and sometimes hilarious, results. However, the possibility of agentic commerce also opens a whole range of potential compliance issues. A recent Sheppard Mullin memo gives an overview:

“The shift to an increasingly automated shopping experience reframes the regulatory conversation. When an AI assistant pays a bill or clicks ‘buy’, central compliance questions will revolve around authentication, authorization, fraud, and who bears responsibility when an AI’s actions do not align with a consumer’s wishes or when rogue agents are deployed to execute bogus transactions. For regulators, banks, fintechs, and merchants, existing concepts of consent, liability, and consumer protection strain when transactions are initiated by software rather than people. Current regulatory frameworks concentrate on authorization, fraud controls, and dispute resolution, all of which were designed for human-initiated transactions. As agentic commerce continues to move into the mainstream, market players will need to rethink their approach to payments compliance for online transactions.”

The risks agentic commerce poses to consumers and banks are apparent. Though the risk to businesses shouldn’t be overlooked. Consider agentic commerce platforms built for procurement departments. If an AI makes a multi-million dollar mistake, there will be litigation. How that litigation plays out will largely depend on how courts choose to apply agency law to agentic AI.