U.S. AI-based Personalization Engines Market Size, Share & Trends Analysis Report By Component, By Technology, By Application, By Deployment, By End Use, And Segment Forecasts, 2025 - 2033

U.S. AI-based Personalization Engines Market Summary

Real-time personalization is becoming a key trend as businesses seek to deliver dynamic, context-aware experiences. Use cases such as live sports, streaming, and e-commerce events highlight the need for engines that can process and respond to live data instantly. AI systems are being developed to ingest behavioral, transactional, and environmental data in real-time. This enables more relevant content, offers, or recommendations at the exact moment of user interaction. The demand for immediacy is driving innovation in data pipelines, edge computing, and low-latency AI models. As a result, real-time personalization is emerging as a critical differentiator for U.S. enterprises aiming to boost engagement and conversion. For instance, in May 2025, IBM Corporation partnered with Scuderia Ferrari, the racing division of Ferrari, to launch an AI-powered app using Watsonx, transforming live race data into personalized content and interactive experiences for fans. This partnership aims to enhance fan engagement by using enterprise AI to transform complex race data into real-time, scalable, and immersive digital experiences.

Automation of personalization workflows is becoming a major trend in the U.S. AI-Based Personalization Engines market. This trend focuses on reducing the need for manual intervention in complex processes. By automating these workflows, businesses can handle tasks more efficiently. Content management and audience targeting are key areas benefiting from this automation. Streamlining these tasks allows companies to scale their personalization efforts across multiple platforms. Increased scalability helps meet the growing demand for tailored user experiences. As a result, businesses can provide more consistent and timely personalization. This enhances customer engagement and drives better outcomes. For instance, in March 2025, Adobe introduced AI agents such as Agent Orchestrator and Brand Concierge. These tools aim to optimize websites, manage content, refine target audiences, and deliver personalized customer experiences.

Integration of generative AI is becoming a significant trend in the U.S. AI-Based Personalization Engines market. Generative AI models have the ability to produce customized content tailored to individual user preferences. These models can generate personalized offers, messages, and recommendations automatically. This enables businesses to scale their personalization efforts without relying heavily on manual content creation. Using generative AI, companies deliver unique experiences that resonate more deeply with customers. The technology supports a variety of content types, including text, images, and even video. This versatility allows brands to engage users across multiple channels effectively. Moreover, generative AI adapts content in real time based on user interactions and feedback. This dynamic approach improves relevance and user satisfaction. As a result, companies adopting generative AI gain a competitive edge through enhanced personalization at scale.

Component Insights

The software segment dominated the U.S. AI-Based Personalization Engines market in 2024 with a market share of 62.1%. Software dominated the U.S. AI-Based Personalization Engines market due to its scalability and adaptability across industries. Businesses are increasingly deploying AI-powered software platforms to deliver real-time, personalized customer experiences. These solutions integrate seamlessly with existing digital infrastructures, making them easier to implement and manage. The demand for On-premises-based personalization engines further supports software dominance. Ongoing innovation in machine learning algorithms enhances the precision and efficiency of these platforms. As companies seek more automation and analytics-driven personalization, software remains the preferred component over services.

Services are growing in the U.S. AI-Based Personalization Engines market due to rising demand for implementation support, customization, and ongoing optimization. Many organizations require expert assistance to integrate AI tools into existing systems effectively. Consulting services help businesses design strategies tailored to their customer data and objectives. Managed services are also gaining traction as firms seek continuous performance monitoring and model updates. The complexity of AI solutions often necessitates specialized training and support. As AI adoption increases, service providers are becoming essential partners in ensuring successful deployment and ROI.

Technology Insights

Machine Learning and Deep Learning dominated the U.S. AI-Based Personalization Engines market. These technologies enable systems to analyze vast amounts of data and identify complex patterns. Machine Learning models learn from user behavior to deliver customized recommendations. Deep Learning, with its neural networks, improves accuracy in understanding user preferences. Together, they enhance real-time decision-making and predictive capabilities. Their dominance reflects the demand for sophisticated personalization solutions across industries. Companies invest heavily in these technologies to maintain a competitive edge. This trend is expected to continue as data volumes grow and algorithms advance.

Hybrid recommendation systems are growing in the U.S. AI-based personalization engines market. These systems combine various recommendation techniques to improve the accuracy and relevance of personalized content. By integrating methods such as collaborative filtering and content-based filtering, they address the weaknesses of individual approaches. This results in better user engagement and satisfaction. Businesses use hybrid systems to tailor experiences more effectively across different platforms. The increasing volume and variety of data further drive the adoption of these systems in personalization engines.

Application Insights

Website Personalization dominated the U.S. AI-based personalization engines market. It allows companies to tailor website content dynamically based on individual user behavior and preferences. This creates a more engaging and relevant browsing experience that increases conversion rates. Businesses use data such as past visits, location, and demographics to customize user journeys. The technology integrates with AI to deliver real-time updates and product recommendations. Website personalization remains a key driver for customer retention and loyalty. Many organizations are expanding their personalization efforts to cover multiple digital touchpoints. This dominance reflects the importance of direct, personalized engagement on owned platforms.

Display Ads Personalization is growing rapidly in the U.S. AI-Based Personalization Engines market. It focuses on customizing advertising content shown to users across various digital channels. By analyzing user data and behavior, ads become more relevant and effective in capturing attention. This leads to higher click-through rates and improved advertising ROI. Advances in AI enable more precise targeting and dynamic ad creation in real time. Display ads personalization is gaining momentum as brands seek to maximize ad spend efficiency. Increasing privacy regulations are pushing companies to rely on smarter AI-driven personalization methods. The growth of programmatic advertising is also fueling demand for personalized display ads.

Deployment Insights

Cloud dominates the U.S. AI-based personalization engines market due to its scalability and flexibility. It offers businesses the ability to quickly deploy and scale personalization solutions across multiple channels. Cloud platforms also reduce upfront infrastructure costs, making them attractive for organizations of all sizes. This deployment model supports faster innovation cycles by enabling frequent updates and improvements. Moreover, cloud solutions provide broad accessibility, allowing teams to collaborate seamlessly from different locations. The ease of integration with other digital tools further strengthens cloud’s position.

The on-premises segment in the U.S. AI-Based Personalization Engines market remains important for organizations prioritizing data security and control. It offers enhanced privacy by keeping sensitive information within the company’s own infrastructure. Many regulated industries, such as healthcare and finance, prefer on-premises solutions to meet compliance requirements. This deployment model allows for customization tailored to specific organizational needs. However, on-premises setups often involve higher upfront costs and longer implementation times.

End Use Insights

Retail and E-commerce dominated the U.S. AI-Based Personalization Engines market. These industries heavily rely on personalized recommendations to boost sales and improve customer experience. AI-driven personalization helps retailers analyze shopping behavior and tailor promotions effectively. It enhances product discovery and increases customer loyalty through targeted offers. The rise of online shopping has accelerated the adoption of these technologies. Retailers continue investing in personalization to stay competitive and meet evolving consumer expectations. This dominance shows how critical AI is for driving revenue in this sector.

The healthcare sector is expanding rapidly within the U.S. AI-Based Personalization Engines market. Increasing demand for personalized patient care and improved treatment outcomes drives this growth. AI-powered personalization helps tailor medical recommendations, improve diagnostics, and enhance patient engagement. Healthcare providers are adopting these technologies to streamline workflows and reduce costs. Regulatory support and advancements in health data analytics also boost market adoption. This growth shows the broader trend of digital transformation in the healthcare industry.

Key U.S. AI-based Personalization Engines Company Insights

Some of the key companies in the U.S. AI-Based Personalization Engines market include Amazon Web Services, Inc., Google LLC, IBM Corporation, Microsoft, NVIDIA Corporation, and others. Organizations are focusing on increasing customer base to gain a competitive edge in the industry. Therefore, key players are taking several strategic initiatives, such as mergers and acquisitions, and partnerships with other major companies.

• Amazon Web Services, Inc. has expanded its AI and machine learning services to enable more advanced personalization capabilities. Its suite includes tools such as Amazon Personalize, which allows businesses to build real-time recommendation systems and personalized user experiences without needing deep ML expertise. AWS focuses on scalability and integration with its On-premises infrastructure, helping companies process vast amounts of data to deliver tailored content and offers. Continuous updates and new feature rollouts improve model accuracy and ease of deployment.

• Google continues advancing its AI and machine learning technologies to enhance personalization engines. Its Google On-premises AI platform offers tools for building custom recommendation systems and predictive models. Google leverages its expertise in natural language processing and computer vision to enable more immersive, personalized interactions. Integration with Google Analytics and Ads provides businesses with richer data insights for precise targeting. Google continuously improves its AI models with large-scale data and research, boosting personalization effectiveness.

Recent Developments

• In May 2025, PepsiCo Inc., a U.S.-based food company, partnered with Amazon Web Services, Inc. to accelerate its digital transformation by leveraging AWS’s On-premises infrastructure and AI capabilities. This partnership focuses on enhancing generative AI applications, optimizing supply chains, and delivering more personalized consumer experiences globally.

• In March 2025, Google's Gemini AI assistant introduced personalization features that connect with Google apps such as Search, Photos, and YouTube. This integration allows Gemini to provide contextually relevant responses based on individual user activity, enhancing the personalization of interactions.

U.S. AI-based Personalization Engines Market Report Scope

U.S. AI-based Personalization Engines Market Report Segmentation

This report offers revenue growth forecasts at the country level and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Grand View Research has segmented the U.S. AI-based personalization engines market report based on component, technology, application, deployment and end use:

• Component (Revenue, USD Billion, 2021 - 2033)

  • Software

  • Services

• Technology Outlook (Revenue, USD Billion, 2021 - 2033)

  • Machine Learning and Deep Learning

  • Content-Based Filtering

  • Hybrid Recommendation Systems

  • Collaborative Filtering

  • Natural Language Processing (NLP)

  • Others

• Application (Revenue, USD Billion, 2021 - 2033)

  • Website Personalization

  • Email Personalization

  • Display Ads Personalization

  • Social Media Personalization

  • Others

• Deployment Outlook (Revenue, USD Billion, 2021 - 2033)

  • On-premises

  • Cloud

• End Use (Revenue, USD Billion, 2021 - 2033)

  • BFSI

  • Media & Entertainment

  • Healthcare

  • IT & Telecom

  • Retail & E-commerce

  • Automotive

  • Travel & Hospitality

  • Education

  • Others