AI-Based Personalization Engines Market Size, Share & Trends Analysis Report By Component (Software, Services), By Application (Website Personalization, Display Ads Personalization), By Technology, By Deployment, By End Use, By Region, And Segment Forecas

AI-Based Personalization Engines Market Summary

The global AI-based personalization engines market size was estimated at USD 455.40 billion in 2024 and is projected to reach USD 717.79 billion by 2033, growing at a CAGR of 5.3% from 2025 to 2033. This growth is driven by the widespread availability of consumer data and advancements in machine learning algorithms, which enable businesses to analyze user behavior and deliver tailored experiences.

ndustries such as e-commerce, healthcare, and finance increasingly adopt these engines to improve customer engagement and conversion rates through personalized recommendations and dynamic pricing strategies. For instance, Shein uses artificial intelligence to personalize the shopping experience by analyzing customer data such as browsing history, purchase behavior, and real-time user interactions. These AI-driven insights enable the company to deliver tailored product recommendations, customized promotions, and dynamic pricing, thereby enhancing customer engagement and increasing conversion rates. The rise of digital platforms and omnichannel retail further amplifies demand, as companies prioritize seamless, customized interactions across websites, mobile apps, and social media.

Moreover, integrating AI personalization engines with emerging technologies like natural language processing and computer vision enhances their ability to predict and adapt to individual preferences more accurately. Businesses also focus on real-time data analytics and automated decision-making to optimize marketing campaigns and inventory management, addressing challenges such as overstocking or irrelevant content delivery. In addition, the competitive landscape drives organizations to differentiate their offerings by refining customer loyalty programs and hyper-targeted advertising, creating sustained demand for advanced personalization solutions.

In addition, regulatory frameworks, including data privacy laws such as GDPR, shape the market by requiring transparent and ethical use of consumer data. Compliance mandates encourage the development of secure, anonymized data-handling practices while maintaining personalization effectiveness. Simultaneously, expanding AI applications in travel, automotive, and entertainment sectors introduce new use cases for personalized experiences, ensuring continuous innovation and scalability. These factors sustain market growth, balancing technological advancement with evolving consumer expectations and regulatory requirements.

The increasing availability of big data and advancements in cloud computing infrastructure significantly contribute to the growth of AI-based personalization engines. Organizations leverage vast customer data from diverse touchpoints to train algorithms that deliver highly relevant and timely recommendations. Cloud platforms provide scalable computing power and storage, enabling real-time processing and deployment of personalization models without heavy upfront investments. Additionally, the rise of edge computing allows personalization engines to operate closer to the end-user, reducing latency and enhancing user experience.

Global AI-Based Personalization Engines Market Report Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Grand View Research has segmented the global AI-based personalization engines market report based on component, application, technology, deployment, end use, and region.

• Component Outlook (Revenue, USD Million, 2021 - 2033)
• Software
• Services
• Application Outlook (Revenue, USD Million, 2021 - 2033)
• Website Personalization
• Email Personalization
• Display Ads Personalization
• Social Media Personalization
• Other
• Technology Outlook (Revenue, USD Million, 2021 - 2033)
• Collaborative Filtering
• Content-Based Filtering
• Hybrid Recommendation Systems
• Machine Learning and Deep Learning
• Natural Language Processing (NLP)
• Others
• Deployment Outlook (Revenue, USD Million, 2021 - 2033)
• On-premises
• Cloud
• End Use Outlook (Revenue, USD Million, 2021 - 2033)
• BFSI
• Media & Entertainment
• Healthcare
• IT & Telecom
• Retail & E-commerce
• Automotive
• Travel & Hospitality
• Education
• Others
• Regional Outlook (Revenue, USD Million, 2021 - 2033)
• North America
• U.S.
• Canada
• Mexico
• Europe
• Germany
• UK
• France
• Asia Pacific
• China
• Japan
• India
• South Korea
• Australia
• Latin America
• Brazil
• Middle East and Africa (MEA)
• UAE
• KSA
• South Africa