Press release
Artificial Intelligence (AI) Based Personalization Market Outlook 2025-2034: Key Trends, Growth Drivers, and Market Share
Artificial Intelligence AI Based Personalization Market
The rise in interest in artificial intelligence by corporations is predicted to stimulate the expansion of the AI-based personalization market in the future. Artificial intelligence pertains to the creation and use of computer systems capable of carrying out tasks that usually need human intellect. Through a blend of sophisticated algorithms, real-time functionalities, and a comprehensive grasp of customer experiences, AI-powered personalization serves as a key business tactic aimed at providing customized and captivating experiences for their customers. For example, the International Business Machines Corporation (IBM), an American technology corporation, reported in May 2022 that about 35% of businesses globally utilized artificial intelligence in 2022, reflecting a 4% growth from the previous year. Moreover, there was a 13% growth in the number of organizations adopting AI in 2022 compared to 2021. Thus, the escalating interest in the application of artificial intelligence by businesses is anticipated to boost the AI-based personalization market's growth.
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What growth opportunities are expected to drive the artificial intelligence (ai) based personalization market's CAGR through 2034?
The market for artificial intelligence (AI) centered personalization has seen robust growth in the recent past. It is projected to expand from a size of $498.22 billion in 2024 to reach $525.21 billion in 2025, reflecting a compound annual growth rate (CAGR) of 5.4%. This significant growth throughout the historical period is attributable to factors such as the increased availability of data, a rise in e-commerce, advancement in digitalization, enhanced user engagement, and widespread adoption across various industries.
In the coming years, the market for AI-based personalization is projected to witness substantial growth, ballooning to a valuation of $639.73 billion by 2029, with a CAGR of 5.1%. This projected growth in the forecast period can be linked to factors such as an enhanced focus on customer retention, the rise of 5G technology, developments in machine learning algorithms, the swift proliferation of IoT devices, and the increased fusion of AI. During the forecast period, prevalent trends will encompass the alliance of AI and human expertise, AI-fuelled predictive analytics, real-time personalization, vocal and conversational AI, and AI-driven content suggestions.
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How are the latest trends influencing the growth of the artificial intelligence (ai) based personalization market?
Leading firms in the AI-driven personalization market are innovating advanced technologies such as personalized cold email tools for a more customer-friendly service. This particular AI-enabled tool allows sales departments to escalate their hyper-personalized cold email initiatives and employ generative AI to automatically create personalized email content for recipients. For example, in April 2023, a software company from the US, Regie.ai, launched Rapid Writer, a tool specifically designed to aid sales teams in executing highly personalized cold email campaigns at scale. This cutting-edge tool harnesses the power of generative AI technology to simplify the creation of personalized content for email recipients, thus enhancing the communication tactics of sales departments.
Which growth-oriented segments of the artificial intelligence (ai) based personalization market are leading the industry's development?
The artificial intelligence (AI) based personalization market covered in this report is segmented -
1) By Type: Website Personalization, Display Ads Personalization, Social Media Personalization, E-Mail Personalization
2) By Technology: Machine Learning And Deep Learning, Natural Language Processing, Other Technologies
3) By Application: Travel, Retail, Media And Entertainment, Other Applications
Subsegments:
1) By Website Personalization: Content Customization, Product Recommendations, User Interface (UI) Personalization, Display Ads Personalization
2) By Dynamic Retargeting: Behavioral Targeting, Social Media Personalization
3) By Targeted Content Feeds: Customized Ads, E-Mail Personalization
4) By E-Mail Personalization: Personalized Subject Lines, Product Recommendations In Emails
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What regions are leading the charge in the artificial intelligence (ai) based personalization market?
North America was the largest region in the artificial intelligence (AI) based personalization market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the artificial intelligence (AI) based personalization market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
What companies are at the forefront of innovation in the artificial intelligence (ai) based personalization market?
Major companies operating in the artificial intelligence (AI) based personalization market report are Amazon.com Inc., Apple Inc., Alphabet Inc. (Google), Microsoft Corp., Meta Platforms Inc., accenture* Plc, International Business Machines Corp. (IBM), Oracle Corporation, SAP SE, Salesforce.com Inc., McDonald Corp., Adobe Systems Inc., Twilio, Verint Systems Inc., Bounteous Inc., BloomReach Inc., Sitecore Holding II AS, RichRelevance, Coveo, Crownpeak Technology Inc., Dynamic Yield Ltd., Blueshift Labs Inc., Reflektion, mParticle Inc., ViSenze Pte. Ltd., H2O.ai Inc., Infinite Analytics Inc
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What Is Covered In The Artificial Intelligence (AI) Based Personalization Global Market Report?
• Market Size Forecast: Examine the artificial intelligence (ai) based personalization market size across key regions, countries, product categories, and applications.
• Segmentation Insights: Identify and classify subsegments within the artificial intelligence (ai) based personalization market for a structured understanding.
• Key Players Overview: Analyze major players in the artificial intelligence (ai) based personalization market, including their market value, share, and competitive positioning.
• Growth Trends Exploration: Assess individual growth patterns and future opportunities in the artificial intelligence (ai) based personalization market.
• Segment Contributions: Evaluate how different segments drive overall growth in the artificial intelligence (ai) based personalization market.
• Growth Factors: Highlight key drivers and opportunities influencing the expansion of the artificial intelligence (ai) based personalization market.
• Industry Challenges: Identify potential risks and obstacles affecting the artificial intelligence (ai) based personalization market.
• Competitive Landscape: Review strategic developments in the artificial intelligence (ai) based personalization market, including expansions, agreements, and new product launches.
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