Optimization, Personalization & Testing

Brands boost AI spend to power personalization, report reveals

AI takes hold as brands accelerate investment in personalization, new report shows
Brands

A new study from Apply Digital, the digital transformation partner for global brands, reveals the extent to which businesses in North America and the UK are embracing artificial intelligence to personalize customer experience at scale.

Based on a survey of 400 senior business leaders across both markets, the report finds that AI is rapidly becoming a foundation for real-time personalization. The most used application is personalized email messaging, which is already employed by 61% of brands, with a further 22% planning to introduce  it within 12 months. 

Seasonal promotional offers and discounts are another high growth area, which are currently employed by 52% of respondents with a further third (32%) planning to introduce it. Location-based recommendations are another key area of investment for marketers, half (52%) have deployed AI to enhance their offer to date, and 33% intend to do so in the next 12 months.  

The report’s author, Brian Browning, VP of Enterprise Solutions at Apply Digital, comments: “Personalization is being rapidly upgraded with AI as marketers move from the experimentation stages to making this a strategic priority. Brands on both sides of the Atlantic, no matter their size or sector, are increasingly embedding this transformative technology to create smarter, more relevant experiences.”

While all sectors — including B2B, retail, media and entertainment, CPG, and sports — are all investing heavily in AI, there is a clear regional difference, with the US leading on current adoption overall. However, British businesses show stronger short-term intent as they look to close the gap. 

The report, 2025 Leadership Priorities in Personalization, also highlights how this wave of AI adoption is being driven by shifting consumer expectations. Nearly seven in ten consumers — and 80% of those aged 18 to 24 — say they value personalized experiences. But with that comes rising demand for transparency: nearly 40% want more control over how their data is collected and used.

Browning adds: “AI technology now means brands can offer true one-to-one experiences at scale, and it seems almost everyone is looking to leverage this capability. But the winners will be those who personalize with empathy, transparency and trust. AI is an amazing tool, but it must be used wisely.”

With further investment planned — over half of all leaders surveyed expect to spend more than $1 million on personalization in 2025 — the report suggests that it is becoming a defining capability for modern businesses. 

As agentic AI tools such as digital assistants become more widely used – notably, 30% of brands intend to introduce AI-powered chatbots in the next 12 months –  the customer experience will be shaped not just by people, but by the intelligent systems that act on their behalf.

The 2025 Leadership Priorities in Personalization report is available to download now at http://hubs.ly/Q03gBTGdo 

Notes to editors

Apply Digital worked with Censuswide to conduct a survey of 400 senior decision-makers across the sports, retail, media and entertainment, CPG, and B2B industries. Censuswide also surveyed over 1,000 consumers across various demographics. 

Business leaders were asked detailed questions about personalization activities at their organizations and investment priorities for the year to come. Consumer survey respondents were asked detailed questions about how they felt about personalization, data collection and privacy, and the use of AI technologies in personalization. 

 About Apply Digital

We are a global digital transformation partner for change agents. Leveraging expertise that spans Business Transformation Strategy, Product Design & Development, Commerce, Platform Engineering, Data Intelligence, Change Management, and beyond, we enable our clients to modernize their organizations and deliver meaningful impact to their business and to their customers. 

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Apply Digital is a global digital transformation partner for change agents. Leveraging expertise in business transformation strategy, product design and development, commerce, platform engineering, data intelligence, and change management, it enables clients to modernize their organizations and drive meaningful business impact. Its team of 750+ professionals has helped transform global companies such as Kraft Heinz, the NFL, Moderna, Lululemon, Games Workshop, Atlassian, and The Very Group.