As per MRFR analysis, the US Artificial Intelligence-Based Personalization Market Size was estimated at 112.49 (USD Billion) in 2023. The US Artificial Intelligence-Based Personalization Market is expected to grow from 120 (USD Billion) in 2024 to 210 (USD Billion) by 2035. The US Artificial Intelligence-Based Personalization Market CAGR (growth rate) is expected to be around 5.219% during the forecast period (2025 - 2035)
Key US Artificial Intelligence-Based Personalization Market Trends Highlighted
The growing demand from consumers for customised experiences across a range of industries, such as digital marketing, e-commerce, and entertainment, is propelling the US AI-Based Personalisation Market's notable expansion.
Businesses may now more efficiently analyse customer behaviour and provide recommendations and personalised content thanks to developments in big data analytics and machine learning algorithms. One of the main factors driving the market is this sensitivity to personal tastes.
Additionally, US businesses are concentrating on strengthening customer interaction through insights powered by AI, which enhances user experience and boosts customer satisfaction. As companies continue to use AI technologies, there are a lot of options to investigate.
Businesses have an opportunity to profit from tailored marketing tactics as a result of the growing integration of AI in customer relationship management (CRM) systems. Businesses can use AI to deliver tailored content and advertising as the trend towards personalisation gains traction, increasing conversion rates.
These potentials are further supported by the growth of smart devices and the internet of things (IoT), which provide enormous volumes of data that can be utilised for deep personalisation. There has been a noticeable change in AI-driven personalisation in recent years towards ethics and transparency.
Companies are adopting more ethical procedures in data collecting and utilisation as a result of US consumers' growing awareness of data privacy issues. In addition to increasing consumer trust, this approach promotes adherence to laws like the CCPA and GDPR, which are important in the US market.
The need for ethical AI solutions is anticipated to increase as companies want to strike a balance between privacy and personalisation, which will impact the market environment and shape upcoming developments in the sector.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
US Artificial Intelligence-Based Personalization Market Drivers
Growing Demand for Customized User Experiences
The demand for personalized experiences among consumers in the United States is rapidly increasing. According to a report from the National Retail Federation, 73% of consumers prefer to buy from brands that offer personalized experiences.
As businesses across various sectors, such as e-commerce, finance, and healthcare, focus more on catering to individual preferences, the US Artificial Intelligence-Based Personalization Market is expected to witness substantial growth.
Major companies like Amazon and Netflix are leading this trend through advanced AI-driven recommendation engines that enhance user engagement by analyzing data and predicting customer needs. As personalization becomes a competitive advantage, the market is anticipated to expand significantly, fueled by this consumer trend in the United States.
Advancements in Machine Learning Technologies
Machine Learning (ML) technologies play a crucial role in enhancing AI capabilities within the US Artificial Intelligence-Based Personalization Market. The U.S. government is investing heavily in technology research, with the National Science Foundation noting a 20% increase in funding towards machine learning research projects over the last three years.
This funding supports innovations that improve algorithms and analytical capabilities, thereby driving the demand for AI-based personalization solutions. This advancement is not only limited to large technology companies but also empowers small startups in the United States to implement sophisticated AI tools. As more entities adopt these technologies, the overall market is expected to grow significantly.
Increasing Internet and Smartphone Penetration
The rise in internet connectivity and smartphone usage in the United States is a critical driver for the US Artificial Intelligence-Based Personalization Market. According to the Federal Communications Commission, more than 90% of Americans now have access to high-speed internet, and approximately 85% of U.S. citizens own a smartphone.
This widespread access allows businesses to collect vast amounts of consumer data that can be effectively analyzed using AI for personalization. Companies like Google leverage this data to tailor their services, enhancing user satisfaction and loyalty. The growth of digital platforms continues to push the demand for AI-driven solutions, leading the market toward exponential growth.
US Artificial Intelligence-Based Personalization Market Segment Insights
Artificial Intelligence-Based Personalization Market Type Insights
The US Artificial Intelligence-Based Personalization Market segment categorized by Type includes various approaches that leverage advanced algorithms to enhance user experiences. Website Personalization is a critical aspect, as it tailors the content displayed to users based on their preferences and behaviors, thus driving engagement and improving conversion rates.
Display Ads Personalization enables brands to craft advertisements that resonate more deeply with targeted audiences, making advertising campaigns more efficient and effective. Social Media Personalization plays an essential role in crafting unique user experiences on social platforms, as it allows businesses to deliver tailored content that increases interaction and brand loyalty.
E-Mail Personalization remains significant in direct marketing strategies, allowing companies to send customized messages that speak to individual user needs and preferences, enhancing open and click-through rates.
There are also various other methods being deployed in the AI personalization domain which contribute to the nuanced targeting of consumers, utilizing multi-channel data to offer an all-encompassing personalized experience.
All these types indicate a broader trend towards increasing personalization in the market, driven by consumer demand for bespoke experiences and the growing capabilities of artificial intelligence technologies.
This makes the market versatile and adaptive to evolving consumer expectations. However, while these segments present vast opportunities for growth, they also come with challenges such as data privacy concerns and the need for robust data management frameworks.
Collectively, these developments highlight the importance of understanding the dynamics within this market type segment to capture its full potential in enhancing customer engagement, satisfaction, and ultimately, profitability in the expanding digital landscape of the United States.
With a strong economy and a tech-savvy population, the US proves to be a fertile ground for the continuous evolution and success of AI-based personalization strategies across various types.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Artificial Intelligence-Based Personalization Market Technology Insights
The Technology segment of the US Artificial Intelligence-Based Personalization Market is witnessing substantial growth driven by advancements in various computational fields. Machine Learning has emerged as a vital component, enabling systems to improve over time through experience, thereby enhancing personalization in user interactions across platforms.
Similarly, Deep Learning is significantly influencing the landscape by allowing more complex data processing and analysis, which is crucial for crafting tailored experiences in sectors such as e-commerce and digital marketing.
Natural Language Processing is also playing a critical role; it enhances machine understanding of human language, making interactions more intuitive and user-friendly. As businesses increasingly prioritize personalized experiences, the demand for sophisticated technologies within this market continues to rise, presenting numerous opportunities for innovation and growth.
Furthermore, the evolution of cloud computing and big data is aiding these technologies, as they require substantial computational power and rich datasets for their algorithms to thrive and deliver effective personalization solutions in the US market.
Artificial Intelligence-Based Personalization Market Application Insights
The US Artificial Intelligence-Based Personalization Market around the Application segment is witnessing robust growth, driven by increasing demand for personalized experiences across various industries. Within this landscape, applications in Travel, Retail, Media and Entertainment, and Others stand out in terms of their significance.
The Travel sector utilizes AI to enhance customer experiences through tailored recommendations and personalized itineraries, improving customer satisfaction and engagement. Similarly, the Retail segment leverages AI for predictive analytics, enabling businesses to optimize inventory and deliver targeted promotions to consumers, fostering brand loyalty.
In the Media and Entertainment domain, AI-driven personalization enhances content delivery, allowing platforms to recommend shows and movies based on user preferences, thus increasing viewer retention rates. Other applications also capitalize on machine learning and data analytics to deliver customized solutions across various fields, demonstrating the versatility and importance of AI personalization.
The overall trend indicates a shift towards more user-centric approaches, highlighting the crucial role of Artificial Intelligence in attracting and retaining customers in the competitive US market. Driven by innovation and technological advancements, these applications solidify their positions as essential components of business strategies, fundamentally transforming consumer interactions.
US Artificial Intelligence-Based Personalization Market Key Players and Competitive Insights
The US Artificial Intelligence-Based Personalization Market has rapidly evolved in recent years, driven by advancements in technology, an increase in consumer data availability, and the demand for tailored experiences across various platforms.
As businesses seek to differentiate themselves in a crowded marketplace, the integration of AI technologies has allowed for significantly enhanced customer engagement and more effective marketing strategies.
Companies operating in this space leverage machine learning algorithms and data analytics to gain insights into customer preferences, ultimately enabling them to offer personalized recommendations, content, and services.
This heightened focus on personalization is leading to increasing competition among numerous providers who are innovating and fine-tuning their offerings to cater to the unique needs of their respective target audiences.
Microsoft holds a strong position in the US Artificial Intelligence-Based Personalization Market, with an extensive portfolio that includes Azure cloud services and the Microsoft Dynamics suite. Through these platforms, Microsoft provides powerful AI-driven analytics tools that enable businesses to create highly personalized experiences for their customers.
The company benefits from its well-established presence in the corporate sector, bolstered by its reputation for reliability and security. Microsoft's commitment to continuous innovation and improving its AI capabilities allows businesses to harness advanced personalization features that are critical for customer retention and engagement.
The integration of AI into Microsoft products enhances not only user experience but also enables organizations to utilize predictive analytics, thereby facilitating data-driven decision-making. As Microsoft continues to invest in research and development, its strong market presence is expected to remain a key strength in the competitive landscape.
Shopify has established itself as a significant player in the US Artificial Intelligence-Based Personalization Market, particularly in the e-commerce sector. This platform offers a range of solutions that empower businesses to create customized shopping experiences through features such as personalized product recommendations, targeted marketing campaigns, and customer segmentation.
Shopify's strengths lie in its robust ecosystem of integrated applications and tools that cater specifically to small and medium-sized enterprises. The company actively pursues strategic partnerships and acquisitions to enhance its capabilities in AI and personalization, further solidifying its position in the market.
With a user-friendly interface and extensive support for merchants, Shopify enables businesses to implement AI-driven solutions without a steep learning curve. As a result, the company effectively aids its clients in optimizing their sales and enhancing customer satisfaction in the US region.
Key Companies in the US Artificial Intelligence-Based Personalization Market Include
US Artificial Intelligence-Based Personalization Market Developments
Amazon Q, a generative AI assistant created by Amazon Web Services to improve workplace productivity by providing individualised insights and decision help, was introduced in November 2023. Google Cloud's AI-powered personalisation capabilities, such as a generative chatbot designed to enhance interactions on shop websites and applications, were unveiled in January 2024.
Oracle launched Oracle Cloud Infrastructure Generative AI services that same month, allowing businesses to produce context-sensitive marketing and customer support content. Salesforce enhanced its AI-powered personalisation features in its CRM platform in early 2024 as well, providing improvements to marketing and customer interaction tactics.
Microsoft Advertising recently introduced immersive "Showroom Ads" and AI-powered dynamic ad generation in June 2025, indicating a move towards more interactive and real-time personalisation experiences.
Additionally, on June 20, 2025, Applebee's and IHOP, two Dine Brands restaurants, revealed intentions to implement an AI-powered personalisation engine to customise specials and recommendations based on past client purchases.
This is a strategic use of personalisation in the hospitality industry. These advancements demonstrate the quick uptake of AI personalisation in the U.S. market across cloud providers, CRM platforms, advertising networks, and hospitality chains.
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 | Details |
| Market Size 2023 | 112.49(USD Billion) |
| Market Size 2024 | 120.0(USD Billion) |
| Market Size 2035 | 210.0(USD Billion) |
| Compound Annual Growth Rate (CAGR) | 5.219% (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 | Microsoft, Shopify, Demandbase, Alibaba, Nvidia, Adobe, Salesforce, Amazon, Criteo, Oracle, IBM, Google |
| Segments Covered | Type, Technology, Application |
| Key Market Opportunities | Enhanced customer experience optimization, Data-driven personalized marketing campaigns, AI-driven content curation tools, Personalized product recommendations systems, Dynamic pricing strategies based on user behavior |
| Key Market Dynamics | Increasing demand for personalized experiences, Advancements in AI technology, Rising consumer data privacy concerns, Growth of e-commerce platforms, Need for efficient marketing strategies |
| Countries Covered | US |
Frequently Asked Questions (FAQ) :
The US Artificial Intelligence-Based Personalization Market was valued at 120.0 USD Billion in 2024.
By 2035, the US Artificial Intelligence-Based Personalization Market is projected to reach a value of 210.0 USD Billion.
The market is expected to grow at a CAGR of 5.219% from 2025 to 2035.
Website personalization is anticipated to dominate, valued at 30.0 USD Billion in 2024 and 54.0 USD Billion in 2035.
Display ads personalization was valued at 25.0 USD Billion in the year 2024.
The social media personalization segment is expected to reach 36.0 USD Billion in 2035.
Major players in the market include Microsoft, Shopify, Demandbase, Alibaba, Nvidia, Adobe, Salesforce, Amazon, Criteo, Oracle, IBM, and Google.
Email personalization was valued at 15.0 USD Billion in 2024.
There are opportunities for growth driven by increasing demand for tailored consumer experiences.
The 'others' category is projected to reach 48.0 USD Billion by 2035.
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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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