Future of Artificial Intelligence (AI) Based Personalization Market Growth: Drivers, Trends, and Market Size Projections (2025-2034)

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What are the key drivers behind the artificial intelligence (ai) based personalization market’s growth in recent years?

The increasing inclination towards artificial intelligence by businesses is expected to propel the growth of the artificial intelligence (AI)-based personalization market going forward. Artificial intelligence refers to the development and implementation of computer systems that can perform tasks that typically require human intelligence. The combination of advanced algorithms, real-time capabilities, and a holistic understanding of customer journeys positions AI-driven personalization as a prominent strategy for businesses aiming to provide tailored and engaging experiences to their audience. For instance, in May 2022, according to the International Business Machines Corporation (IBM), a US-based technology company, around 35% of businesses worldwide used artificial intelligence (AI) in 2022, which is an increase of 4% from 2021. In addition, there was a 13% increase in organizations adopting artificial intelligence (AI) in 2022 compared to 2021. Therefore, the increasing inclination towards artificial intelligence use by businesses will drive the growth of the artificial intelligence (AI)-based personalization market.

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How does the future projection of the artificial intelligence (ai) based personalization market size compare to its historical growth?

The artificial intelligence (AI) based personalization market size has grown strongly in recent years. It will grow from $498.22 billion in 2024 to $525.21 billion in 2025 at a compound annual growth rate (CAGR) of 5.4%. The growth in the historic period can be attributed to Increasing Data Availability, Rise in E-Commerce, Growing Digitalization, Improved User Engagement, and Cross-Industry Adoption.

The artificial intelligence (AI) based personalization market size is expected to see strong growth in the next few years. It will grow to $639.73 billion in 2029 at a compound annual growth rate (CAGR) of 5.1%. The growth in the forecast period can be attributed to increasing focus on customer retention, emergence of 5G technology, advancements in machine learning algorithms, rapid expansion of IoT devices, and increased ai integration. Major trends in the forecast period include collaboration of ai and human expertise, ai-based predictive analytics, real-time personalization, voice and conversational ai, and ai-powered content recommendations.

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Which key players are shaping the future of 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

What trends will propel the growth and evolution of the artificial intelligence (ai) based personalization market?

Major companies operating in the artificial intelligence (AI)-based personalization market are developing advanced technologies, such as personalized cold email tools, to better serve customers. The personalized cold email tool is an AI-powered tool designed to enable sales teams to scale hyper-personalized cold email outreach and leverage generative AI to automatically generate personalized content for email recipients. For instance, in April 2023, Regie.ai, a US-based software company, introduced Rapid Writer, a tool specifically crafted to assist sales teams in efficiently implementing highly personalized cold email outreach at scale. This innovative tool utilizes generative AI technology to automate the process of generating personalized content for email recipients, enhancing the effectiveness of communication strategies for sales teams.

Which regions are expected to become dominant players 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.

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What are the emerging key segments in the artificial intelligence (ai) based personalization market, and how are they evolving?

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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How is the artificial intelligence (ai) based personalization market defined, and what are its core characteristics?

Artificial intelligence (AI)-based personalization refers to the use of artificial intelligence technologies and algorithms to tailor and customize content, services, or experiences for individual users. The goal is to provide a more personalized and relevant interaction based on the specific preferences, behaviors, and characteristics of each user.

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