Artificial active

$715.20 Million Growth Expected in AI-Based Personalization Market | Driven by high churn for mass marketing

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According to recent Technavio market research, the Artificial intelligence-driven personalization market size is expected to grow USD 715.20 million from 2020 to 2025, accelerating at a CAGR of 19.17% during the forecast period. The report provides a detailed analysis of drivers and opportunities, top winning strategies, competitive scenario, future market trends, market size and estimates, and major investment pockets.

APAC will register the strongest growth, occupying around 35% of the global market share. China is the key market for AI-driven personalization in Asia-Pacific. Market growth in APAC will be slower than market growth in MEA.

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Overview of Suppliers-

The AI-based personalization market is concentrated. The competitive scenario of the market is dynamic which has increased the investments of market players. Suppliers are investing heavily in AI and R&D to develop comprehensive offerings.

Accenture Plc: The company offers .AI Solutions for Marketing designed for this era of digital interactions. It brings the speed and accuracy of multi-touch attribution to marketing mix modeling.

Alphabet Inc.: The company offers Amazon Personalize, which allows developers to build apps with the same machine learning technology used by for real-time, personalized recommendations.

BloomReach Inc.: The company offers predictive affinities to automatically choose the right content and product for each customer every time.

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Regional Market Outlook

The growth of the AI-based personalization market in APAC region will be significant during the forecast period. However, the market has seen the fastest growth in MEA. Factors such as the automation of processes such as automated customer service agents, automated intelligence and threat prevention systems, and the changing relationship between machines and employees are driving the growth of the personalization market based on artificial intelligence in the MEA. United States, Germanythe UK and France will emerge as the major markets of the artificial intelligence driven personalization market over the forecast period.

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Latest drivers and trends driving the market-

  • Artificial Intelligence-Based Personalization Market Driver:
    • High unsubscribe rate for mass marketing:

Churn is high in mass marketing. About 20% of email recipients unsubscribe from emails when they receive too many from a particular brand. Therefore, companies focus on sending personalized emails based on previous orders, searches, clicks, time spent on pages, similar visitor interests, and customer wish lists. The process helps companies gather customer information and identify an appropriate predictive model to use on customer data to determine if the customer is active, inactive for a short period, or inactive for an extended period. This is driving the adoption of AI-powered personalization solutions in mass marketing, which drives market focus.

  • Artificial Intelligence Driven Personalization Market Challenge:
    • Lack of qualified resources and technological know-how:

Many marketers in the industry struggle to use available technologies to connect with their business and provide effective communication personalization. Also, many people are unaware of the technical issues with software implementation. This creates uncertainties about usability after AI implementation. This is one of the main challenges for the growth of the global artificial intelligence-based personalization market.

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Scope of the Artificial Intelligence-Based Personalization Market

Report cover


Page number


base year


Forecast period


Growth momentum and CAGR

Accelerate at a CAGR of 19.17%

Market Growth 2021-2025

$715.20 million

Market structure


Annual growth (%)


Regional analysis

APAC, North America, Europe, South America and MEA

Successful market contribution

APAC at 35%

Main consumer countries

United States, China, Germany, United Kingdom and France

Competitive landscape

Leading companies, competitive strategies, scope of consumer engagement

Profiled companies

Accenture Plc, Alphabet Inc., Inc., Apple Inc., BloomReach Inc., Blueshift Labs Inc., Inc., International Business Machines Corp., Microsoft Corp. and Inc.

Market dynamics

Parent Market Analysis, Market Growth Drivers and Barriers, Fast and Slow Growing Segment Analysis, Impact of COVID-19 and Future Consumer Dynamics, Market Condition Analysis for the forecast period.

Personalization area

If our report does not include the data you are looking for, you can contact our analysts and customize the segments.

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