As per MRFR analysis, the India Artificial Intelligence-Based Personalization Market Size was estimated at 38.6 (USD Billion) in 2023.The India Artificial Intelligence-Based Personalization Market is expected to grow from 40.45(USD Billion) in 2024 to 65 (USD Billion) by 2035. The India Artificial Intelligence-Based Personalization Market CAGR (growth rate) is expected to be around 4.406% during the forecast period (2025 - 2035)
Key India Artificial Intelligence-Based Personalization Market Trends Highlighted
Due to rising internet usage and smartphone adoption nationwide, the artificial intelligence-based personalisation market in India is expanding significantly. Businesses are being pushed to use AI to improve customer engagement and satisfaction as consumers get more used to personalised experiences.
One of the main reasons for the explosive growth of e-commerce in India is the use of AI technologies by businesses to evaluate customer preferences and behaviour and provide personalised recommendations. Furthermore, the government's drive to encourage digitalisation has created an atmosphere that is favourable for the use of AI solutions in a number of industries, such as healthcare, education, and retail.
The unrealised potential in tier II and tier III cities, where companies are starting to see the advantages of employing AI for personalisation, is one area of opportunity that needs to be investigated. The need for AI-driven personalisation solutions is anticipated to increase as more brands strive to meet the varied needs of their customers.
Businesses are concentrating on creating strong frameworks that guarantee regulatory compliance in light of the growing significance of data privacy, which will boost consumer confidence. Recent trends indicate a significant rise in investment in AI technologies, fuelled by entrepreneurs developing cutting-edge products especially for Indian customers.
In an effort to provide more individualised experiences to a larger audience, internet companies and traditional industries are increasingly collaborating. The ongoing development of AI applications in personalisation is demonstrated by the rise of improved algorithms that more accurately forecast customer preferences.
Another development that is changing how Indian firms engage with their customers is the incorporation of AI into digital marketing tactics and social media platforms. All things considered, the scene is changing quickly, suggesting that AI-based personalisation has a bright future in the nation.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
India Artificial Intelligence-Based Personalization Market Drivers
Rising Demand for Personalized Customer Experiences
The Indian market is witnessing a significant increase in consumer expectations for personalized experiences, driven by the proliferation of digital technology and online platforms.
According to a report by the Internet and Mobile Association of India (IAMAI), over 400 million people in India use the internet actively for various services, including shopping, which has prompted businesses to adopt Artificial Intelligence-based personalization strategies to enhance customer engagement.
Major companies like Flipkart and Amazon India are leveraging AI algorithms to analyze consumer behavior, preferences, and purchase history, allowing them to provide customized recommendations and offers.
Such initiatives are expected to drive growth in the India Artificial Intelligence-Based Personalization Market as businesses aim to meet the evolving demands of tech-savvy consumers. With India’s rapid urbanization and increasing penetration of smartphones, the need for tailored customer experiences is anticipated to rise substantially, impacting market valuations positively.
Growth of E-Commerce Industry
The e-commerce sector in India has been experiencing explosive growth, projected to reach USD 200 billion by 2026 as per the India Brand Equity Foundation (IBEF). This surge creates a favorable environment for Artificial Intelligence-Based Personalization technologies.
E-commerce giants such as Myntra and Snapdeal are increasingly utilizing AI to analyze vast datasets for understanding customer preferences.
The ability to provide personalized product recommendations based on user behavior not only enhances the customer shopping experience but also significantly increases conversion rates. As more retailers invest in AI-driven tools for personalization, the India Artificial Intelligence-Based Personalization Market stands to expand rapidly in response to this burgeoning e-commerce landscape.
Advancements in AI and Machine Learning Technologies
Technological advancements in Artificial Intelligence and Machine Learning have significantly bolstered the capabilities of personalization solutions in India.
Notable contributions from established firms like TCS (Tata Consultancy Services) and Infosys demonstrate how innovation in AI technologies can streamline processes and enhance personalization efforts. As per a report by NASSCOM, the adoption of AI technologies in various sectors in India is expected to triple by 2025.
This rapid development in AI capabilities allows organizations to deploy more sophisticated personalization techniques, thus driving the demand for AI-based solutions and spurring growth in the India Artificial Intelligence-Based Personalization Market.
India Artificial Intelligence-Based Personalization Market Segment Insights
Artificial Intelligence-Based Personalization Market Type Insights
The India Artificial Intelligence-Based Personalization Market exhibits diverse Type segments that cater to various aspects of user interaction and engagement. Website Personalization plays a crucial role in enhancing user experience by tailoring content and layout according to individual preferences, thus leading to increased conversion rates and customer satisfaction.
Display Ads Personalization is significant as it enables businesses to serve relevant advertisements to potential customers, maximizing return on investment by targeting specific audiences based on their online behavior and interests.
Social Media Personalization is another key area, crucial for brands seeking to connect with their audience on platforms where engagement is highly valued. By analyzing user data, businesses can create tailored content that resonates with users, thereby increasing brand loyalty and driving sales.
E-Mail Personalization is equally important, allowing companies to send customized messages to their audience, which improves open rates and customer retention through tailored communications that address the specific needs and preferences of recipients.
Moreover, the Others segment encompasses a wide array of additional personalization strategies such as mobile app personalization and content recommendation systems, which are gaining momentum in being crucial for maintaining competitive advantage in the saturated Indian market.
The growing digital landscape in India, driven by increasing internet penetration and mobile usage, propels the demand for such personalized experiences across various channels. The blend of advanced technologies such as machine learning and data analytics facilitates the sophisticated personalization functionalities across all these segments.Businesses are recognizing the need to adopt these technologies to optimize customer interactions, enhancing overall consumer satisfaction while driving greater business efficiency.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Artificial Intelligence-Based Personalization Market Technology Insights
The Technology segment of the India Artificial Intelligence-Based Personalization Market is a dynamic and essential facet, focusing on advanced computational methodologies that enhance user experiences across various applications. Machine Learning, a core component, allows systems to learn from data, making it vital for customizing interactions and recommendations.
Similarly, Deep Learning, with its multilayered neural networks, plays a significant role in understanding complex data patterns, driving innovative solutions in personalization. Natural Language Processing is equally important, enabling machines to understand and process human language, thus enhancing communication between users and AI systems.
The growing adoption of digital platforms across industries in India, coupled with an increasing demand for tailored customer experiences, positions these technological advancements as key drivers of market growth.
Moreover, understanding user behavior through data analytics not only aids in creating personalized offerings but also presents opportunities for businesses to increase engagement and loyalty.The ongoing advancements in these technologies reflect their dominance in the market and highlight their contribution to the transformation of various sectors in India, ultimately delivering greater value to consumers and businesses alike.
Artificial Intelligence-Based Personalization Market Application Insights
The India Artificial Intelligence-Based Personalization Market, particularly in the Application segment, showcases diverse opportunities across various sectors. In the realm of Travel, personalized experiences enhance customer satisfaction by tailoring itineraries and offers based on individual preferences, which significantly influences consumer choices.
The Retail sector likewise benefits greatly from artificial intelligence as it drives targeted marketing and inventory management, catering to the unique shopping habits of consumers. Furthermore, the Media and Entertainment industry utilizes personalization to recommend content and engage users, fostering a compelling user experience.
Alongside these prominent areas, other industries are recognizing the potential of AI personalization, as businesses apply innovative solutions to improve overall customer engagement. The need for customized interactions, data-driven insights, and effective customer journey mapping is becoming paramount for businesses in India.
Such trends indicate a robust growth potential within these applications, as organizations increasingly prioritize understanding and anticipating consumer needs through advanced technology. Overall, the market is evolving, influenced by emerging technologies, providing valuable insights into consumer behavior and driving substantial growth across these applications.
India Artificial Intelligence-Based Personalization Market Key Players and Competitive Insights
The India Artificial Intelligence-Based Personalization Market is witnessing a significant transformation driven by rapid advancements in technology and an increasing emphasis on tailored customer experiences. Companies across various sectors are recognizing the value of leveraging artificial intelligence to enhance personalization strategies, whether in retail, e-commerce, or digital services.
The competitive landscape is diverse, with numerous players striving to harness machine learning algorithms, data analytics, and customer insights to deliver contextual marketing and personalized product recommendations.
As consumer expectations evolve, organizations are pressing to adopt AI-driven methodologies that ensure they remain competitive while keeping pace with changing market dynamics and customer preferences, ultimately leading to significant innovations in personalization capabilities.
Tech Mahindra has successfully positioned itself as a strong player in the India Artificial Intelligence-Based Personalization Market through its expertise in digital transformation and comprehensive solutions tailored to customer needs.
The company leverages its extensive domain knowledge and advanced technological capabilities to create personalized customer experiences across various sectors, including telecom, retail, and banking. Tech Mahindra's strengths lie in its robust analytics capabilities, which enable it to process vast amounts of data to facilitate real-time responses and recommendations to customers.
With a strong focus on client relationships and a commitment to innovation, Tech Mahindra is well-equipped to drive significant advancements in AI-based personalization solutions within the Indian market landscape, effectively setting itself apart from competitors.
Cognizant holds a prominent position in the India Artificial Intelligence-Based Personalization Market, known for its advanced analytics services and a comprehensive portfolio of AI-driven solutions tailored to various industries.
By offering a range of key products and services, including customer journey mapping, AI-powered chatbots, and predictive analytics tools, Cognizant enables businesses to enhance customer engagement and optimize marketing strategies.
The company has taken significant steps in establishing its presence through strategic partnerships and collaborations aimed at reinforcing its capabilities in AI. Cognizant's strengths lie in its dedicated focus on innovation and a customer-centric approach that positions it as a reliable partner for organizations seeking to implement effective personalization strategies.
Furthermore, the company continues to pursue growth opportunities through mergers and acquisitions, showcasing its commitment to expanding its technological expertise and market share within the Indian landscape.
Key Companies in the India Artificial Intelligence-Based Personalization Market Include
India Artificial Intelligence-Based Personalization Market Developments
Adobe and Infosys announced a strategic partnership in March 2025 that would combine Adobe's AI tools with Infosys's Aster marketing suite to provide unified, large-scale personalised customer experiences. At the same time, Agoda introduced an AI-powered vacation planner in June 2025 that was specifically designed for Indian users and used Google's Gemini and Imagen models.
Also generating momentum are creative startups: Bengaluru-based Ringg AI, which positioned voice personalisation as a key interface and obtained early funding in May 2025 to grow its multilingual conversational voice platform for enterprises.
With platforms like PixelYatra launching generative design tools in June 2025 and retail chatbots and AR fitting tools becoming more popular, Indian businesses are improving the in-store experience with AI-driven personalisation.
Furthermore, the ethical use of AI is emphasised by government-led projects like the IndiaAI Safety Institute, which was established in January 2025 and supports confidence in personalisation technology. Language-specific AI skills are being advanced via platforms like Bhashini and Sarvam AI, as well as multilingual foundational models like Krutrim LLM (which was launched in February 2025).
When taken as a whole, these projects demonstrate India's quickly developing AI personalisation ecosystem, which includes consumer tools, enterprise solutions, language-driven models, and governance frameworks designed to enable user experiences across industries that are clear, pertinent, and reliable.
India Artificial Intelligence-Based Personalization Market Segmentation Insights
Artificial Intelligence-Based Personalization Market Type Outlook
Artificial Intelligence-Based Personalization Market Technology Outlook
Artificial Intelligence-Based Personalization Market Application Outlook
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2023 | 38.6(USD Billion) |
| MARKET SIZE 2024 | 40.45(USD Billion) |
| MARKET SIZE 2035 | 65.0(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 4.406% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Billion |
| KEY COMPANIES PROFILED | Tech Mahindra, Cognizant, InMobi, Wipro, Infosys, Accenture, BrowserStack, Fractal Analytics, Mu Sigma, Tata Consultancy Services, Lenskart, Niki.ai, ZebPay, Zebra AI |
| SEGMENTS COVERED | Type, Technology, Application |
| KEY MARKET OPPORTUNITIES | Personalized customer experiences, AI-driven content recommendations, Enhanced e-commerce personalization, Tailored marketing strategies, Smart virtual assistants integration |
| KEY MARKET DYNAMICS | Growing demand for personalized experiences, Increasing adoption of AI technologies, Expanding e-commerce and retail sectors, Enhanced customer engagement strategies, Regulatory challenges in data privacy |
| COUNTRIES COVERED | India |
Frequently Asked Questions (FAQ) :
The India Artificial Intelligence-Based Personalization Market is expected to be valued at 40.45 billion USD in 2024.
By 2035, the market is anticipated to reach a value of 65.0 billion USD.
The market is projected to grow at a CAGR of 4.406% during the period from 2025 to 2035.
Website Personalization is expected to dominate the market with a value of 10.0 billion USD in 2024.
The market for Display Ads Personalization is projected to reach 14.5 billion USD by 2035.
Major players include Tech Mahindra, Cognizant, Wipro, Infosys, and Accenture among others.
The market for Social Media Personalization is projected to be valued at around 7.0 billion USD in 2024 and is expected to grow significantly thereafter.
E-Mail Personalization is anticipated to reach a market value of 9.0 billion USD by 2035.
The market faces challenges such as data privacy concerns and the need for continuous technological advancements.
Increased demand for tailored customer experiences and advancements in AI technology are key growth drivers.
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Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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