Artificial Intelligence in Marketing Market By Product Type (Software, Predictive Analytics Tools, CRM Platforms with AI, Content Generation Software, Customer Data Platforms, Managed Services, Training & Development), By Deployment Mode (Cloud-Based, On-Premises, Hybrid), By Technology (Machine Learning, Natural Language Processing, Deep Learning, Computer Vision, Speech Recognition, Context-Aware Computing), By Industry Vertical (Retail & eCommerce, Healthcare, Media & Entertainment, Telecommunications, Consumer Goods, Travel & Hospitality, Real Estate, IT & Software Services, Others), By Application (Customer Experience Personalization, Content Curation & Generation, Programmatic Advertising, Predictive Customer Behavior Analysis, Lead Scoring & Sales Forecasting, SEO & SEM Optimization, Others), Global Market Size, Segmental Analysis, Regional Overview, Company Share Analysis, Leading Company Profiles, and Market Forecast, 2025–2035

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Industry Outlook

The Artificial Intelligence in Marketing Market accounted for USD 21.02 Billion in 2024 and is expected to reach USD 257.04 Billion by 2035, growing at a CAGR of around 25.56% between 2025 and 2035. The Artificial Intelligence in Marketing Market involves the use of analytical tools in the marketing environment to develop and customize advertising, automate processes, and increase the conversion rate. This market is fast developing because many organizations today require timely and efficient ways of processing their data. AI is being embraced in most industries to fuel ROI, enhance the marketing process, and gain a competitive edge. Taking into account the tendencies, this market’s prospects are bright, and it is expected that in the next decade it will show a constantly growing trend due to the development of algorithms, cloud technologies, and digital marketing. It was found that industries such as retail, BFSI, healthcare, and media are likely to invest the most in AI marketing.

Report Scope:

Market Dynamics

Growing demand for personalized customer experiences across digital platforms fuels AI-driven marketing adoption.

The transformation of the market is the ever-rising need for an individual approach to each client. The contemporary customers, therefore, require brands to comprehend their likes, conduct, and requirements over every channel and interaction. This has forced marketers to turn to AI tools to sort through large amounts of customer data in real-time for efficient and effective content and product recommendations. In particular, getting an ML model that produces a list of recipients for the next round of email marketing and an ML model that suggests the content to match the recipient’s preferences and the goals of the organization up and running can enhance the business-customer experience and foster loyalty.

It means that businesses that incorporate AI for their operations can classify audiences as well as determine the customers’ behaviors and respond to them in a relevant and customized manner. As a result, the offered level of personalization not only increases user activity but also increases the probability of profit and profitability. When it comes to digital channels, personalization is a crucial element for competitive companies within various industries. It therefore empowers the marketer or the communication strategist to communicate the right message to the right target through the right medium. This shift is gradually shifting communication from the mass marketing strategy to personalized communication marketing.

Expansion of the e-commerce industry accelerates the implementation of AI tools for customer engagement optimization.

The expansion of e-commerce is progressing, showing that it is increasing the use of AI tools that would help to manage customer relations even more. Our customers are now able to shop from one platform, the convenience and efficiency that are being demanded by organizations, especially in current times where online shopping is gradually becoming the new norm. This way, AI helps e-commerce platforms to understand the customer’s previous purchases and his or her visits to website pages and provide relevant product suggestions as well as real-time prices. Chatbots and virtual assistants can improve the customer support function as they directly deal with the customer’s inquiries in a shorter time and increase satisfaction. Otherwise, predictive analytics that assist the retailer in predicting new demand and ordering stock will also be useful.

These are equally ensured through the use of artificial intelligence in automating marketing communication, enabling better targeting and timing of the campaigns to be made. With the retail sector competition growing even on the digital front, companies are turning to the use of artificial intelligence to enable them to come up with better-targeted, intelligent interactions. This not only helps the customer's repurchasing and loyalty rate but also sales and operations. The application of AI in e-commerce is fast becoming a necessity for an organization to be able to sustain its growth and competitiveness.

High implementation costs of AI technologies limit adoption among small and medium businesses.

One of the major weaknesses in the application of AI technologies is that they are also characterized by high implementation costs, thus making it relatively difficult for SMBs to embrace these technologies. These follow small businesses with limited funds to procure new technologies and tools and develop AI infrastructure. As it was mentioned above, the utilization of AI is possible only with significant amounts of money, as large enterprises can hire unique specialists and develop their AI solution, while SMBs will not be able to do this. Of greater concern and burden for small organizations are the recurrent costs that accompany the use of AI, and these include maintenance, training, and data management charges. For this reason, many SMBs do not implement AI even though it has several strengths in marketing, sustaining customer relations, and going beyond the rudimentary email blast.

Lack of affordable solutions that are easily scalable, specifically for such organizations, further compounds the matter at hand. This cost hinders innovation and growth in the competitive scope among the SMBs in the digital landscape. This means that until AI is cheaper and hence easily accessible, it will not be widespread in all sizes of businesses. Thus, closing said affordability gap that remains a prevalent issue will be crucial for the AI-driven marketing development, which is also to be inclusive.

Increased demand for AI-powered personalization tools offers significant growth potential across industries.

As the requirements for personalization tools rise with the help of AI, there is substantial growth potential in numerous fields. In the world of consumerism, AI is being used to create unique content, recommendations, or an individual message to prospective clients. AI makes it possible to interact with customers in real time and to get individual data such as their browsing history, purchasing behavior, age, etc. Having this kind of personally customized content increases the levels of customer contact, their loyalty, and their likelihood to purchase. Such industries as retailing, e-commerce, and entertainment have been benefiting from the use of AI, and some of the practices include recommendation engines and targeted ads.

The banking and healthcare sectors have taken up AI to provide financial and healthcare solutions. With this kind of application of AI, there is expected to be an increase in demand, and therefore, tapping this market has a lot of potential. It is promoting AI tools and services that support personalization, thus becoming the driving force in digital transformation initiatives.

Expanding cloud computing services make AI-driven marketing tools more accessible to businesses worldwide.

The advancement of cloud computing services is a reason for AI-based marketing solutions to be affordable and accessible for companies around the world. Cloud platforms, due to their flexibility, cost efficiencies, and increased accessibility, allow all companies to leverage the power of the latest AI technologies without having to build much of a technical infrastructure or AI in-house. It has made it possible for small and medium enterprises to adopt various applications that facilitate data analysis, customer profiling, predictions, and marketing, among other services, thereby putting them on the same pedestal as the large-scale organizations. Marketing automation, being one of the approaches towards implementing AI in organizations, entails the use of cloud-based solutions to embrace various features such as machine learning, natural language processing, and a host of other AI applications towards improving on the business’s marketing undertakings by advancing from the traditional approaches to customer targeting and engagement.

Cloud services are also flexible so that the business can implement its AI as it grows without wasting resources on excessive capacity that is implemented as the company scales. In addition, a few barriers in terms of accessibility in using the cloud-based AI solutions lead to new attempts in using artificial intelligence within companies for marketing purposes. The use of AI in the services-delivering process of marketing is set to trend as the cloud services mature, leading to the revolution of the marketing industry through the adoption of digital solutions.

Industry Experts Opinion

"Generative AI is potentially one of the biggest disrupters most marketers are going to come across in their careers, and it is going to impact the entire lifecycle of marketing from experience to effectiveness to efficiency."

• Sumit Virmani, Executive Vice President and Global Chief Marketing Officer at Infosys.

"AI is changing the way businesses interact with customers."

• Shivakumar Ganesan, Co-Founder and CEO of Exotel.

Segment Analysis

Based on the offering, the Artificial Intelligence in Marketing Market is classified into software, predictive analytics tools, CRM platforms with AI, Content Generation Software, Customer Data Platforms, Managed Services, Training & Development. Software has the biggest percentage where organizations are deploying AI-enabled platforms for customer data analytics, content generation, programmatic advertising, CRM optimization, and others. Bots such as chat, recommendation engines, and analytics tools are the future of instant engagement and customization. Further, it’s slowly been expanded across the services side, such as on the professional services side, where clients need system integration, consulting, and developing a strategic plan.

Managed services are also on the rise, as businesses seek outsourcing of AI services to achieve impressive results if they lack the capabilities for its implementation. Right from the onset, the increased ingenuity of AI tools requires support services, and applying that to this aspect results in a coexistence relationship between the development of the software and the services. In general, I agree that both segments are crucial to the overall business, while software allows scaling, the services help to strategically deploy it.

Based on the Application, the Artificial Intelligence in Marketing Market is classified into customer experience personalization, content curation & generation, programmatic advertising, predictive customer behavior analysis, lead scoring & sales forecasting, SEO & SEM optimization. There is a broad spectrum of applications that help in improving customer targeting and campaign performance. CX personalization is the most important pillar of the segment, as brands apply AI to individual approaches at various stages. Lead scoring and predictive analysis are other useful methods designed for sales forecasting and identifying potential clients.

Real-time trading and dynamic functions have recently disrupted programmatic advertising and its efficiency in buying and setting up the prices of ads. Among others, copywriting and content curation for the production of content at an industrial scale using AI contracts (13) is gaining pace for the marketing division. Finally, it is necessary to highlight that with the help of chatbots and virtual assistants, customer interaction and, particularly, customer service are changing in the e-commerce and retail industries. It could be noted that advanced applications that are currently widespread include sentiment analysis and SEO optimization that fit in all the marketing practices.

Regional Analysis

The North America Artificial Intelligence in Marketing Market is growing primarily due to the established tech giants, active startups, and funding in AI technologies and solutions. The U.S. remains the most advanced in the region, with most organizations, especially retail, BFSI, healthcare, and media, embracing the use of AI. This area has a clear readiness for digital transformation, high levels of personal data analysis, and the constant transition to customer-oriented marketing in the region. The market has received support from key players, including Google, Microsoft, and Salesforce, to offer marketing solutions via artificial intelligence. Even in terms of specific facets of CRM, North America’s early adoption of machine learning, predictive analytics, and AI-powered CRM systems makes it invulnerable to the shift. It is estimated that the region will continue to dominate the other regions due to the enhanced government support for these new technologies, alongside the perpetual investment in AI research.

The Asia-Pacific Artificial Intelligence in Marketing Market is the fastest-growing because of the increased adoption of digital solutions, greater internet usage among the population, and advanced use of artificial intelligence in various industries. Thus, today’s leaders are China, India, Japan, and South Korea, which apply AI in customer relations, content production, and data-based approaches to marketing. This and other related sectors, such as e-commerce, retail, and fintech, are boosting the uptake of AI in the region as firms look to enhance customer experience and form efficiency. Besides, the increasing interest in smart cities and the digitalization of SMEs expands the AI marketing demand. The possibility of sizeable growth in AI adoption in Asia may be attributed to the current trend where, even as the cost of technology continues to reduce, people gain access to services in the cloud. The government incentives regarding AI research and development programs are also contributing to the development of the market.

Competitive Landscape

The competition in the AI in marketing market is intense and consists of several technology players familiar in the industry, several players offering general AI solutions, and emerging AI-based startups. Some of the leading solution providers of AI in marketing include giants like Google, Microsoft, and Salesforce etc., which provide comprehensive solutions that include predictive analytics, CRM integration, and even tools for campaign management, among others. IBM, with its AI-based Watson, and Adobe are other major players having a dedicated toolset for content creation and managing customer insights.

For instance, HubSpot, Oracle, and SAP provide potent marketing automation with the help of AI, NVIDIA, and AWS offer most of the framework that supports the utilization of AI tools. Some new entrants are also visible, such as CognitiveScale for customer experience optimization with the help of AI and Acquia for customized marketing strategies. In the current business environment, small- and large-scale companies take mergers and acquisitions to try to get the upper hand in AI and increase access to the customer base. It is noteworthy that competition is now stiff and organizations’ vendors are not relenting in their efforts with new product models, functions, etc.

Artificial Intelligence in Market, Company Shares Analysis, 2024

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Recent Developments:

• In June 2023, Salesforce, a global leader in customer relationship management (CRM), introduced its latest generative AI products, Marketing GPT and Commerce GPT. Marketing GPT enables marketers to effortlessly generate personalized emails, optimize audience segmentation, and design automated marketing journeys. Meanwhile, Commerce GPT empowers businesses to craft dynamic, AI-driven shopping experiences, offering tailored recommendations and customized deals that adapt to customer needs.
• In February 2023, Bain & Company announced a strategic global services alliance with OpenAI, aimed at helping enterprise clients harness the full potential of artificial intelligence. This partnership will enable Bain to integrate OpenAI's advanced AI tools, including ChatGPT and DALL·E, into its consulting services, enhancing operational efficiency and client outcomes.

Report Coverage:

By Offering

• Software
• Predictive Analytics Tools
• CRM Platforms with AI
• Content Generation Software
• Customer Data Platforms
• Professional Services
• Managed Services
• Training & Development

By Deployment Mode

• Cloud-Based
• On-Premises
• Hybrid

By Technology

• Machine Learning
• Natural Language Processing
• Deep Learning
• Computer Vision
• Speech Recognition
• Context-Aware Computing

By Industry Vertical

• Retail & eCommerce
• Healthcare
• Media & Entertainment
• Telecommunications
• Consumer Goods
• Travel & Hospitality
• Real Estate
• IT & Software Services
• Others

By Application

• Customer Experience Personalization
• Content Curation & Generation
• Programmatic Advertising
• Predictive Customer Behavior Analysis
• Lead Scoring & Sales Forecasting
• SEO & SEM Optimization
• Others

By Region

North America

• U.S.
• Canada

Europe

• U.K.
• France
• Germany
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Singapore
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC Countries
• South Africa
• Rest of Middle East & Africa

List of Companies:

• Google LLC
• International Business Machines Corporation (IBM)
• Microsoft Corporation
• Salesforce, Inc.
• Amazon Web Services, Inc. (AWS)
• Meta Platforms, Inc.
• Adobe Inc.
• Oracle Corporation
• SAP SE
• NVIDIA Corporation
• HubSpot, Inc.
• CognitiveScale, Inc.
• Quantcast Corporation
• Acquia Inc.
• InsideSales.com, Inc.

Frequently Asked Questions (FAQs)