As per MRFR analysis, the UK Artificial Intelligence-Based Personalization Market Size was estimated at 8.82 (USD Billion) in 2023.The UK Artificial Intelligence-Based Personalization Market is expected to grow from 9.25(USD Billion) in 2024 to 15.36 (USD Billion) by 2035. The UK Artificial Intelligence-Based Personalization Market CAGR (growth rate) is expected to be around 4.722% during the forecast period (2025 - 2035)
Key UK Artificial Intelligence-Based Personalization Market Trends Highlighted
Significant trends in the UK AI-based personalisation market are being influenced by shifting customer demands and technological breakthroughs. The growing need for individualised experiences in a variety of industries, such as retail, healthcare, and entertainment, is a major market driver.
Companies are using AI to better understand the needs, tastes, and behaviours of their customers so they can develop specialised products. The UK government's efforts to promote innovation and digital transformation, which assist the integration of AI technology across industries, are contributing to this rising need.
Small and medium-sized businesses (SMEs), which are rapidly implementing AI solutions for tailored marketing tactics, present a number of opportunities to seize in this sector.
There is a significant chance for cooperation between technology companies and enterprises as SMEs start to see the advantages of AI-driven personalisation, encouraging the creation of tailored solutions that meet particular industry demands.
Additionally, as customers grow more tech-savvy, they expect businesses to provide seamless and pertinent experiences. To meet these expectations, businesses can invest in cutting-edge AI solutions. Since openness and data privacy are valued by UK customers and regulatory agencies, there has been a discernible shift in recent years towards ethical AI methods.
In order to gain the trust of customers, businesses are now concentrating on fair algorithms and responsible data usage. As a result of this trend, many businesses are integrating ethical considerations into their AI plans in an effort to establish themselves as accountable industry leaders.
All things considered, the UK Artificial Intelligence-Based Personalisation Market is poised for a dynamic and swiftly shifting landscape due to the ongoing evolution of consumer expectations and advancements in AI technology.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
UK Artificial Intelligence-Based Personalization Market Drivers
Growing Demand for Personalized Customer Experiences
In the UK Artificial Intelligence-Based Personalization Market, the increasing consumer expectation for tailored experiences is a significant driver. Recent reports indicate that 80% of consumers are more likely to make a purchase when brands offer personalized experiences.
This trend has been highlighted in studies conducted by the UK government's Department for Digital, Culture, Media and Sport, which reveal that UK consumers are becoming more discerning and are seeking individualized offerings from businesses.
Established organizations like Tesco are leveraging AI technologies to enhance their customer service through targeted promotions, personalized recommendations, and better customer engagement strategies. Such moves illustrate the market's shift towards prioritizing personalized interactions, necessitating advancements in Artificial Intelligence capabilities to meet these evolving consumer needs.
As technology continues to evolve, personalization strategies utilizing AI are likely to proliferate, capturing a larger share of the market and driving growth considerably through greater customer loyalty and satisfaction.
Advancements in AI Technologies
The continuous advancements in Artificial Intelligence technologies play an integral role in propelling the growth of the UK Artificial Intelligence-Based Personalization Market. The UK has invested heavily in AI Research and Development (R&D), with the government targeting to increase its investment to 1 billion by 2025 as part of its AI sector deal.
This funding is set to bolster the development of algorithms that can analyze consumer data more effectively and generate personalized content. Companies like DeepMind are at the forefront, creating sophisticated AI solutions that drive personalization efforts in various sectors, including retail and finance.
With the UK leading the way in AI innovation, the enhancements in machine learning and data processing capabilities have made it feasible for businesses to create personalized marketing strategies that are not only effective but also data-driven.
Growing E-commerce Market
The expansion of the e-commerce sector in the UK is also a critical driver for the growth of the UK Artificial Intelligence-Based Personalization Market. According to official statistics, the UK e-commerce market was valued at 200 billion in recent years and is projected to continue its upward trajectory.
This growth orientation has necessitated businesses to adopt more personalized strategies to stand out in a highly competitive online environment.
Leading companies such as ASOS are already utilizing AI-based personalization tools to optimize product recommendations and create targeted advertising campaigns, enhancing customer engagement. The increasing reliance on digital sales channels makes the integration of Artificial Intelligence for personalization not just beneficial but essential, further fueling the market's growth.
UK Artificial Intelligence-Based Personalization Market Segment Insights
Artificial Intelligence-Based Personalization Market Type Insights
The UK Artificial Intelligence-Based Personalization Market presents a diverse range of types that are pivotal in driving customer engagement in various digital platforms. These types include Website Personalization, Display Ads Personalization, Social Media Personalization, E-Mail Personalization, and Others.
Website Personalization is increasingly being recognized as a crucial aspect of enhancing user experience, enabling businesses to tailor content, product recommendations, and navigation based on individual user behavior and preferences, leading to improved conversion rates.
On the other hand, Display Ads Personalization focuses on delivering targeted advertisements that resonate with potential customers, which has proven to significantly enhance click-through rates and brand recall.
Social Media Personalization leverages data analytics to provide customized content on platforms like Facebook and Instagram, allowing brands to create meaningful interactions with users and cultivate brand loyalty.
E-Mail Personalization remains a powerful tool for engaging customers, as it allows for the delivery of customized messages and offers based on user preferences, behavior, and prior interactions, resulting in higher open and engagement rates.
The 'Others' segment encompasses various emerging trends and technologies that contribute to the overall growth of the UK Artificial Intelligence-Based Personalization Market. These types are not only integral to enhancing customer experience but also foster brand differentiation in a competitive market landscape, reflecting the significance of personalization in today’s digital economy.
As more companies recognize the value of customized interactions, investments in these segments are likely to increase, creating considerable opportunities for market players and stakeholders in the UK.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Artificial Intelligence-Based Personalization Market Technology Insights
The UK Artificial Intelligence-Based Personalization Market leverages various technological advancements, particularly in Machine Learning, Deep Learning, and Natural Language Processing.
Machine Learning, a foundational element, plays a crucial role in enabling systems to learn from data patterns, enhancing product and service personalization through predictive analytics and consumer behavior insights.
Deep Learning, a more advanced technique, significantly enhances the ability to process and analyze vast amounts of unstructured data, thereby enabling businesses to deliver tailored experiences that resonate with individual users.
Natural Language Processing is equally important as it facilitates human-computer interaction, allowing businesses to understand and respond to customer queries effectively, further refining personalization efforts.
The demand for these technologies is driven by the growing need for customized user experiences and real-time interactions, with UK enterprises increasingly adopting these innovative solutions to gain a competitive edge.
As such, the Technology segment remains a driving force within the UK Artificial Intelligence-Based Personalization Market, showcasing significant trends towards enhanced customer engagement and satisfaction.
Artificial Intelligence-Based Personalization Market Application Insights
The UK Artificial Intelligence-Based Personalization Market has shown substantial growth, particularly within the Application segment, which includes diverse areas such as Travel, Retail, Media and Entertainment, and Others.
The Travel sector utilizes AI to enhance customer experiences through personalized itinerary planning and tailored travel recommendations, thereby improving customer satisfaction and loyalty. In Retail, AI-driven personalization prevails by optimizing product recommendations and marketing strategies based on consumer behavior patterns, thus significantly enhancing sales conversions.
The Media and Entertainment segment benefits from AI by providing personalized content suggestions, making user experience more engaging. Other applications enrich various industries by improving customer interactions and operational efficiencies.
The increasing focus on user experience and the demand for tailored services fuel the growth of the UK Artificial Intelligence-Based Personalization Market. As sectors increasingly adopt customized solutions, the demand for data-driven personalization strategies rises, presenting lucrative opportunities and challenges for stakeholders in the market.
UK Artificial Intelligence-Based Personalization Market Key Players and Competitive Insights
The UK Artificial Intelligence-Based Personalization Market has seen significant competition as companies strive to leverage artificial intelligence to enhance user experiences across various platforms. This market has witnessed growing adoption due to businesses' increasing demand for tailored solutions that cater to individual customer preferences and behaviors.
Many industry players are investing in cutting-edge technologies to develop AI-driven tools that offer personalization, creating a dynamic landscape where agility, customer insights, and innovative strategies play crucial roles.
The competitive insights reveal that organizations are not only focusing on technology but also enhancing their customer engagement tactics to ensure they remain relevant and effective in delivering personalized experiences. The marketplace is characterized by rapid advancements, partnerships, and emerging startups vying for a share of the market.
Adobe has established a prominent presence within the UK Artificial Intelligence-Based Personalization Market. The company's strengths lie in its extensive portfolio of creative and marketing solutions that seamlessly integrate AI capabilities for personalization.
Adobe's platform supports businesses in delivering customized content and experiences, leveraging its deep data insights to enhance customer interactions. By offering tools such as Adobe Experience Cloud, organizations can automate personalized marketing campaigns, thereby increasing their efficiency and effectiveness.
Furthermore, Adobe consistently invests in research and development to stay ahead of trends, setting it apart from competitors. Its strong brand recognition, along with a commitment to data security and compliance, has solidified Adobe's position as a leader in the market, enabling it to attract and retain clients seeking robust personalization solutions.
Dynamic Yield is another key player in the UK Artificial Intelligence-Based Personalization Market, renowned for its innovative approach to personalization through machine learning and optimization technologies.
The company provides an integrated platform that emphasizes user engagement by enabling businesses to deliver real-time, personalized experiences across multiple channels. Its key offerings include Dynamic Yield's personalization engine, which is designed to optimize website content, product recommendations, and email marketing.
As for market presence, Dynamic Yield has made significant strides through strategic partnerships and collaborations, allowing it to expand its influence within the UK landscape. The company's strengths are evident in its ability to quickly adapt to changing consumer preferences and trends, supported by its focus on customer success.
Moreover, Dynamic Yield has pursued mergers and acquisitions to enhance its capabilities and broaden its service offerings, which is critical for maintaining competitiveness in the rapidly evolving AI personalization market in the UK.
Key Companies in the UK Artificial Intelligence-Based Personalization Market Include
UK Artificial Intelligence-Based Personalization Market Developments
Tesco's AI-powered Clubcard personalisation system has been expanded since September 2024, allowing for smart nutritional reminders and healthier product recommendations, which has raised open and click-through rates.
An AI styling assistant that offers outfit ideas based on body form and personal style preferences was introduced by Marks & Spencer on its website in October 2024, increasing online fashion engagement.
According to a Bazaarvoice study from February 2025, 31% of UK consumers say AI-driven rewards have strengthened their loyalty, and 44% say they are more inclined to recommend firms that provide tailored discounts and promotions.
AI and generative AI were named as the top growth drivers for 2025 by UK retailers quoted by the Retail Technology Show in March 2025. Personalisation technologies came in third place among innovation goals.
Lastly, statistics from March 2025 revealed that 50% of UK retailers planned to integrate AI into loyalty programs and post-purchase experiences, and that AI-powered personalisation produced an estimated $229 billion in global sales between November and December 2024.
From tailored recommendations and incentives to calculated investments in client loyalty and engagement, these advancements highlight how AI-powered personalisation is revolutionising UK retail.
UK 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 | 8.82(USD Billion) |
| MARKET SIZE 2024 | 9.25(USD Billion) |
| MARKET SIZE 2035 | 15.36(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 4.722% (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 | Adobe, Dynamic Yield, Amazon, Segment, Salesforce, SAP, Slyce, Oracle, Google, IBM, Yext, Microsoft, CleverTap, Zalando, Bluecore |
| SEGMENTS COVERED | Type, Technology, Application |
| KEY MARKET OPPORTUNITIES | Personalized customer experiences, AI-driven content recommendations, Enhanced data analytics capabilities, E-commerce personalization solutions, Predictive customer behavior insights |
| KEY MARKET DYNAMICS | Data privacy concerns, Increasing consumer expectations, Rapid technological advancements, Competitive market landscape, Growing investment in AI |
| COUNTRIES COVERED | UK |
Frequently Asked Questions (FAQ) :
The market is projected to be valued at 15.36 USD Billion by 2035.
In 2024, the market size is valued at 9.25 USD Billion.
The expected CAGR for the market during this period is 4.722%.
By 2035, the Website Personalization segment is expected to have the largest value at 4.15 USD Billion.
The value of Display Ads Personalization in 2024 was 2.0 USD Billion.
Major players include Adobe, Amazon, Salesforce, Google, and Microsoft.
Social Media Personalization is projected to be valued at 2.92 USD Billion by 2035.
Challenges include data privacy concerns and rapidly evolving technology.
E-Mail Personalization is expected to grow significantly, reaching 1.67 USD Billion by 2035.
There are opportunities to innovate with AI technologies and enhance customer experiences.
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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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