Artificial Intelligence (AI) Based Personalization

Artificial Intelligence (AI) Based Personalization

Global Artificial Intelligence (AI) Based Personalization Market to Reach US$9.0 Billion by 2030

The global market for Artificial Intelligence (AI) Based Personalization estimated at US$2.4 Billion in the year 2023, is expected to reach US$9.0 Billion by 2030, growing at a CAGR of 20.8% over the analysis period 2023-2030. Website Personalization Application, one of the segments analyzed in the report, is expected to record a 23.0% CAGR and reach US$4.1 Billion by the end of the analysis period. Growth in the Display Ads Personalization Application segment is estimated at 19.3% CAGR over the analysis period.

The U.S. Market is Estimated at US$638.8 Million While China is Forecast to Grow at 19.2% CAGR

The Artificial Intelligence (AI) Based Personalization market in the U.S. is estimated at US$638.8 Million in the year 2023. China, the world`s second largest economy, is forecast to reach a projected market size of US$1.3 Billion by the year 2030 trailing a CAGR of 19.2% over the analysis period 2023-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 19.2% and 17.6% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 14.6% CAGR.

Global Artificial Intelligence (AI) Based Personalization Market - Key Trends and Drivers Summarized

Artificial Intelligence (AI) based personalization is transforming how businesses interact with their customers by leveraging AI algorithms to analyze extensive customer data. This technology enables organizations to discern individual behaviors, preferences, and purchasing patterns in real-time, providing a sophisticated understanding that empowers businesses to tailor experiences across multiple touchpoints effectively. For instance, online retailers utilize AI-based personalization to offer product recommendations, dynamic pricing, and targeted promotions based on a user`s browsing and purchasing history, which significantly enhances the shopping experience and boosts sales. Similarly, streaming services use these technologies to deliver content recommendations tailored to individual viewer preferences, increasing engagement and retention. Marketing platforms also benefit from AI personalization by enabling the creation of customized email campaigns and social media ads, improving relevance and efficiency in audience targeting.

The growth of AI-based personalization is driven by its ability to substantially enhance customer engagement and improve conversion rates. By delivering content and recommendations that align closely with individual interests and needs, businesses not only boost engagement but also foster deeper brand loyalty and customer advocacy. The technology`s capacity to refine customer interactions leads to higher conversion rates, as personalized engagements based on previous behaviors encourage impulse buys and facilitate effective cross-selling and upselling strategies. Furthermore, AI algorithms can meticulously map out customer journeys, identifying crucial interaction points and optimizing content delivery at each stage to guide customers smoothly towards making a purchase, enhancing overall customer experience and satisfaction.

Several factors are propelling the adoption of AI-based personalization across various industries. Increased consumer expectations for personalized experiences push businesses to adopt these technologies to stay competitive. Additionally, the strategic shift towards omnichannel marketing requires consistent personalized interactions across all platforms—from web and mobile to social media and physical stores—making AI personalization indispensable. Regulatory compliance with laws like GDPR and CCPA also drives businesses towards AI personalization technologies that offer robust data protection and consent management tools, ensuring data privacy and building customer trust. Lastly, the integration of AI personalization with Customer Data Platforms (CDPs) enables businesses to utilize unified customer profiles and behavioral data to deliver even more targeted and effective personalized experiences, highlighting the growing synergy between advanced AI applications and digital marketing strategies.

Select Competitors (Total 23 Featured) -

• Accenture PLC
• Acquia, Inc.
• Algonomy Software Private Limited
• Amazon Web Services, Inc.
• Bloomreach
• Frosmo
• Oracle Corporation
• Verint Systems, Inc.
• ZS Associates, Inc.

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