Market research firm Technavio expects the global artificial intelligence-based personalization market to grow by $2.54 billion, at a compound annual growth rate of 20.45 percent) between now and 2027.
The research firm looked at website personalization, display ads personalization, social media personalization, email personalization, and others, and determined that the website personalization segment will be the most significant during the forecast period as companies turn to website personalization to attract new customers. Website personalization, it said, is an effective way of providing customized information to targeted groups and increases the conversion rates of new visitors and the retention rate of existing customers more effectively. It uses artificial intelligence algorithms to send messages to customers based on their previous orders, clicks, time spent on pages, and interests of similar visits.
The market, it said further, is being pushed forward by the high rate of consumers opting out of receiving mass marketing.
At the same time, though, Technavio pointed to a lack of skilled resources and technological know-how as the leading challenges hindering market growth. Some marketers, it said, find it difficult to use the available technology in a manner to connect their business and provide appropriate personalization.
Technavio’s report identifies Accenture, Adobe, Alphabet (Google), Amazon, Apple, BloomReach, Blueshift Labs, Bounteous, Crownpeak, H2O.ai, Infinite Analytics, IBM, Microsoft, mParticle, Salesforce, Sitecore, Verint, ViSenze, and ZS Associates as the leading vendors of AI-based personalization technologies.