AI-Based Personalization Engines Market Driven by Increasing Digital Consumer Engagement

San Francisco, 17 September 2025, – The global AI-based personalization engines market size is anticipated to reach USD 717.79 billion by 2033 and is expected to expand at a CAGR of 5.3% during the forecast period, according to a new report by Grand View Research, Inc. The increasing demand for customized consumer experiences across industries is expected to drive market growth.

As digital platforms become more integral to everyday life, businesses are under pressure to deliver content, products, and services that resonate with individual preferences. AI technologies enable this by analyzing vast amounts of user data to generate insights that inform real-time personalization strategies. This capability enhances customer satisfaction and drives engagement and loyalty, making AI-based personalization a critical component of modern business operations.

Advancements in machine learning algorithms and data analytics have further accelerated the adoption of personalization engines. These technologies allow companies to process and interpret complex behavioral patterns, enabling more accurate predictions of consumer needs. Integrating natural language processing and deep learning has expanded the scope of personalization, allowing for more nuanced and context-aware interactions. As a result, e-commerce, entertainment, healthcare, and retail sectors are increasingly investing in AI-driven solutions to refine their customer engagement models and improve conversion rates.

Moreover, the proliferation of big data and the growing emphasis on digital transformation have created fertile ground for expanding AI-based personalization. Organizations are leveraging cloud-based platforms to scale their personalization efforts efficiently while addressing concerns around data privacy and security. The ability to deliver tailored experiences at scale has become a strategic advantage, prompting companies to prioritize AI investments. As consumer expectations continue to evolve, the market is expected to witness sustained growth, supported by ongoing innovation and the rising importance of data-driven decision-making.

Order a free sample PDF of the AI-Based Personalization Engines Market Intelligence Study, published by Grand View Research.

Further key findings from the report suggest:

• By technology, machine learning and deep learning led the market, holding the largest revenue share of 29.5% in 2024.
• By end use, the retail & e-commerce segment held the dominant position in the market and accounted for the leading revenue share of 28.3% in 2024.
• By end use, the healthcare segment is expected to grow at the fastest CAGR of 8.6% from 2025 to 2033.
• North America dominated the global AI-based personalization engines market with the largest revenue share of 30.6% in 2024.
• The AI-based personalization engines market in the U.S. led the North America market and held the largest revenue share in 2024.

List of Key Players in the AI-Based Personalization Engines Market

• SAP SE
• Amazon Web Services, Inc.
• Salesforce, Inc.
• Google LLC
• IBM Corporation
• Zeta Global Corp.
• Adobe
• Microsoft
• NVIDIA Corporation
• Oracle