Artificial Intelligence Based Personalization Market Size, Share, Growth Analysis, By Type (Website Personalization, Display Ads Personalization), By Technology (Machine Learning, Deep Learning), By Application (Travel, Media & Entertainment), By Region - Industry Forecast 2025-2032

Artificial Intelligence Based Personalization Market size was valued at USD 461.9 Billion in 2023 and is poised to grow from USD 484.07 Billion in 2024 to USD 704.37 Billion by 2032, growing at a CAGR of 4.80% during the forecast period (2025-2032).

Mass marketing, which targets all users indiscriminately regardless of their preferences, often leads to a flurry of compromises due to irrelevant features. However, AI-powered personalization puts an edge and offers a remedy to this challenge by adapting messages according to individual behavior, preferences and past interactions. This targeted approach ensures that users receive content that is relevant and appealing to them, thus reducing the number of opt-outs and improving overall marketing efficiency. Leveraging the power of AI-powered personalization allows businesses to satisfy customers, increase engagement, and ultimately drive better results in their marketing efforts.

The market is driven by the growing demand for customized experiences for consumers in industries such as e-commerce, healthcare and finance. Using AI algorithms, businesses analyze customer interaction patterns, preferences and behaviors to deliver personalized marketing campaigns and dynamic pricing strategies. This approach to personalization does not necessarily drive away customer satisfaction and loyalty not only higher but also provides conversion and revenue growth in e-commerce. However, with challenges such as ethical considerations of bias and discrimination, privacy concerns and required initial financial investment, it is important to take a cautious approach to projects seeking to be AI-powered personalized marketing solutions will be implemented.