Google's Advancement in Agentic AI: A Peek into the Imminent Demise of Conventional Search through a Commonphone Function
Google has rolled out an AI feature that automates phone calls to businesses on behalf of users, marking a significant shift in both local commerce and agentic AI usage. This new service, available as of July 16, 2025, allows Google's AI to autonomously call local businesses to collect real-time information such as pricing, availability, and services offered[1][5].
The AI is equipped with advanced capabilities, including natural language phone conversations, multi-turn dialogue management, context retention, accent and dialect adaptation, and background noise filtering[2]. This AI system, using the Gemini 2.5 Pro's voice model, boasts a 99.2% accuracy across accents in speech recognition technology[1].
Google's infrastructure advantage, including 35 global data centers, direct peering with telcos, edge nodes in 200+ cities, dedicated AI chips (TPUs), and a $30 billion annual capex, gives it an edge in building out the necessary infrastructure for agentic AI[3].
This feature exemplifies the growing role of agentic AI—AI systems that independently perform tasks and make decisions with limited human intervention. Google's AI acts as an autonomous agent in a commercial environment, representing the user to local businesses and gathering detailed data[1].
The AI's integration into local commerce enhances consumer convenience for various service queries, such as pet grooming, automotive, hair care, and more[2][5]. It also allows businesses to reach customers efficiently without extra setup, as calls are integrated into Google's existing Business Profile infrastructure[3].
Moreover, the AI drives AI integration deeper into digital commerce workflows by enabling real-time, personalised, and automated interactions that streamline purchasing decision processes and potentially affect how local commerce operates[4].
However, the rollout of this feature has sparked regulatory challenges. Regulators are facing issues in determining if AI calling is covered by robocall laws, consumer protection in AI transactions, varying recording consent requirements, GDPR implications for voice data, accessibility requirements for AI services, and exploring business notification rules[1].
The AI does not handle emergency services, healthcare, or financial calls[6]. All calls made through the AI are recorded with consent[7]. Winners in the voice AI infrastructure, business automation tools, AI training platforms, compliance solutions, and voice analytics markets are emerging, while traditional aggregators, call center operators, booking platforms, review sites, and SEO-dependent businesses are facing potential losses[8].
Google is creating a platform with three phases: consumer convenience features, business integration, and full agentic commerce[9]. Data collected through this new feature includes every preference expressed, price sensitivity revealed, timing patterns exposed, communication styles analysed, and decision factors mapped[10].
The AI's call analytics and insights, automated booking management, customer interaction optimisation, and full agentic commerce could be potential sources of revenue for Google[10]. User behaviour is shifting fundamentally as users are moving towards telling AI what they want and letting it handle everything, with convenience trumping choice[11].
Google aims to disrupt without disrupting, using existing infrastructure and requiring no business adoption or behaviour change[12]. However, every business must prepare for AI callers by auditing their phone systems, training staff for AI interactions, updating information, monitoring AI call outcomes, optimising operations for automation, and adapting to the new dynamics of intermediated commerce[13].
The battle for control of agentic AI means control of commerce, with competition taking place in the U.S., China, Europe, India, and globally, with standards wars beginning[14]. Trust in Google's brand enables unprecedented delegation, with 78% of users comfortable with Google AI calling and 65% willing to let the AI make purchases[15].
Key competition metrics in the voice technology industry include latency, naturalness, reliability, scalability, and multilingual support[16]. Early enterprise adopters like Walmart, JPMorgan, Salesforce, and Microsoft are exploring AI for supplier communications, client services, sales development, and customer service automation[17].
As 40% of calls are expected to be AI by 2026, local businesses face an existential choice as human receptionists may become optional[18]. Human review is available for appeals, and businesses can opt out of the AI feature[19]. China is pursuing its own agentic AI initiatives, with Baidu, Alibaba, Tencent, and the government developing their own standards, while the EU is pursuing a different model with privacy-first design, consent requirements, worker protections, competition preservation, and public-private partnerships[20].
References: 1. Google Business Profile 2. Google's New AI-Powered Business Calling Feature 3. Google's Infrastructure Advantage 4. Google's AI-Powered Business Calling Feature Transforms Local Commerce 5. Google's AI-Powered Business Calling Feature: Convenience for All 6. Google's AI-Powered Business Calling Feature: Exclusions and Limitations 7. Google's AI-Powered Business Calling Feature: Consent and Recording 8. Google's AI-Powered Business Calling Feature: Impact on Traditional Businesses 9. Google's AI-Powered Business Calling Feature: Platform Phases 10. Google's AI-Powered Business Calling Feature: Data Collection and Revenue Potential 11. Google's AI-Powered Business Calling Feature: Shift in User Behaviour 12. Google's AI-Powered Business Calling Feature: Disrupting Without Disrupting 13. Preparing for Google's AI-Powered Business Calling Feature 14. The Battle for Control of Agentic AI 15. Trust in Google's Brand Enables Delegation 16. Key Competition Metrics in the Voice Technology Industry 17. Early Enterprise Adopters of AI 18. 40% of Calls Will Be AI by 2026 19. Human Review and Opt-Out Options 20. China and the EU's Approach to Agentic AI
- The marketing strategy of Google includes the rollout of an AI feature that automates phone calls to businesses, aiming to disrupt local commerce and agentic AI usage.
- This innovation in frameworks has equipped the AI with advanced capabilities, including natural language conversations, multi-turn dialogue management, context retention, accent and dialect adaptation, and background noise filtering.
- The integration of this AI system into digital commerce workflows drives business revenue by enabling real-time, personalized, and automated interactions that streamline purchasing decision processes.
- The management of this AI system, using the Gemini 2.5 Pro's voice model, boasts a 99.2% accuracy in speech recognition technology, giving it an edge in competitor markets.
- The AI calls made by Google are subject to regulatory challenges, with issues in determining if they are covered by robocall laws, consumer protection in AI transactions, and varying recording consent requirements.
- Despite these challenges, the AI does not handle emergency services, healthcare, or financial calls, ensuring compliance with certain regulations.
- Investment in this technology is expected to pay off, as the AI's call analytics and insights, automated booking management, customer interaction optimisation, and full agentic commerce could generate significant revenue for Google.
- With the AI expected to handle 40% of calls by 2026, businesses need to prepare for this new technology by auditing their phone systems, training staff for AI interactions, and optimising operations for automation.
- The valuation of businesses in the voice AI infrastructure, business automation tools, AI training platforms, compliance solutions, and voice analytics markets is expected to increase as the role of AI in local commerce becomes more prevalent.
- Moreover, innovation in models of finance and investing is necessary for businesses to adapt to this new dynamics of intermediated commerce, where convenience may trump choice.
- As trust in Google's brand enables more delegation to AI, businesses must reevaluate their strategies to stay competitive in a landscape where even human receptionists may become optional.
- The battle for control of agentic AI means control of commerce, with competition taking place in the U.S., China, Europe, India, and globally, leading to standards wars and potential business losses for traditional aggregators, call center operators, booking platforms, and SEO-dependent businesses.
- Meanwhile, early enterprise adopters like Walmart, JPMorgan, Salesforce, and Microsoft are exploring the use of AI for supplier communications, client services, sales development, and customer service automation.
- On the regulatory front, the EU is pursuing a different model with privacy-first design, consent requirements, worker protections, competition preservation, and public-private partnerships, whereas China is developing its own standards for agentic AI.
- Businesses should consider the metrics of latency, naturalness, reliability, scalability, and multilingual support when choosing voice technology providers, ensuring that their AI systems are effective and efficient.
