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Strong Growth Ahead: Artificial Intelligence (AI) Based Personalization Market Size To Grow At Arecord 5.1% Cagr By 2029
Artificial Intelligence (AI) Based Personalization
How Big Is the Artificial Intelligence (AI) Based Personalization Market Size Expected to Be by 2034?
The market size for personalization based on artificial intelligence (AI) has made significant strides in expansion over recent years. The anticipated increase is from $498.22 billion in 2024 to $525.21 billion in 2025, showcasing a compound annual growth rate (CAGR) of 5.4%. The unprecedented growth during the historic era could be linked to factors such as the upsurge in data accessibility, the booming e-commerce sector, the advancement in digitalization, augmented user interaction, and its wide-ranging adoption across different industries.
The market size of personalization driven by artificial intelligence (AI) is anticipated to experience significant growth in the upcoming years, predicted to reach $639.73 billion by 2029 with a compound annual growth rate (CAGR) of 5.1%. This expected expansion during the forecast period is due to increased emphasis on client retention, the rise of 5G technology, advancements in machine learning algorithms, the swift growth of IoT devices, and a heightened level of ai integration. Key trends projected for this duration encompass collaboration between AI and human expertise, AI-based predictive analytics, real-time customization, voice and conversational AI, as well as AI-enhanced content suggestions.
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What Are the Emerging Segments Within the Artificial Intelligence (AI) Based Personalization Market?
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 Long-Term Drivers Are Shaping Artificial Intelligence (AI) Based Personalization Market Trends?
The surge of interest in artificial intelligence from businesses is projected to stimulate the expansion of the AI-based personalization market. Artificial intelligence pertains to the creation and deployment of computer systems capable of executing tasks ordinarily necessitating human intelligence. The amalgamation of sophisticated algorithms, real-time functionality, and a comprehensive grasp of customer behaviors makes AI-driven personalization a key approach for businesses looking to provide customized and captivating experiences for their clientele. For example, International Business Machines Corporation (IBM), a technology company based in the US, reported in May 2022 that approximately 35% of global businesses utilized AI in 2022, marking a 4% increase from 2021. Furthermore, there was a 13% surge in the incorporation of AI by organizations in 2022 compared to the previous year. Consequently, the amplified preference of businesses for AI utilization will augment the expansion of the AI-based personalization market.
Who Are the Top Competitors in Key Artificial Intelligence (AI) Based Personalization Market Segments?
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
What Artificial Intelligence (AI) Based Personalization Market Trends Are Gaining Traction Across Different Segments?
Leading businesses in the AI-based personalization sector are innovating by offering advanced tools such as personalized cold email tools for improved customer service. This AI-driven tool is intended to help sales teams enlarge their personalized cold email outreach with the assistance of generative AI that can automatically create customized content for email receivers. For instance, Regie.ai, a software company based in the U.S., launched Rapid Writer in April 2023. This unique tool was designed to support sales teams in implementing personalized cold email outreach in a more efficient way. By utilizing generative AI technology, it automates the creation of personalized content for email recipients, thus improving the efficacy of sales teams' communication strategies.
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Which Regions Are Becoming Hubs for Artificial Intelligence (AI) Based Personalization Market Innovation?
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.
Frequently Asked Questions:
1. What Is the Market Size and Growth Rate of the Artificial Intelligence (AI) Based Personalization Market?
2. What is the CAGR expected in the Artificial Intelligence (AI) Based Personalization Market?
3. What Are the Key Innovations Transforming the Artificial Intelligence (AI) Based Personalization Industry?
4. Which Region Is Leading the Artificial Intelligence (AI) Based Personalization Market?
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