Survey: Retailers to continue investing in personalization, AI tools
April 14, 2025
Apply Digital found that nearly roughly eight-in-10 (79%) consumers in the United States said personalization is important to them.
As consumers desire more personalization, retailers are delivering.
According to a survey of 400 senior retail leaders from digital transformation partner Apply Digital, 95% of businesses are either already using or planning to adopt real-time product recommendations in the near term (71% currently and 24% within 12 months), while under two percent have no plans currently.
A similar number (93%) say they are already using or plan to use AI to enhance search capabilities. A further 89% are investing in AI to personalize product descriptions, which Apply Digital says signals a broad push toward relevance and real-time adaptation.
An overwhelming 82% of leaders said they will spend more on personalization in 2025 than they did in 2024, with 62% planning to invest more than $1 million on personalization over the next 12 months. In terms of projected AI spend, more than half (52%) say they will invest more than $1 million on AI-enhanced personalization this year.
Nearly all business leaders surveyed said they currently enhance at least one of their personalization tactics with AI. The top three areas they referenced include AI-powered search (67%), enhanced user experiences including AR and VR (66%), and real-time product recommendations and offers (65%). Among those who are not currently using AI for personalization, a majority are planning to do so in 2025, with a focus on seasonal adjustments (41%) and leveraging AI to improve personalized discounting.
Despite the growing adoption, 72% of business leaders are concerned that competitors leveraging AI will erode their market share.
“The pace of AI adoption in the retail sector shows that leaders aren’t waiting around as brands are focussed on turning moments of relevance into lasting loyalty,” said Brian Browning, VP of enterprise solutions at Apply Digital. “In fact, nearly three-quarters of retail businesses say they are already applying AI in some form in day-to-day customer experience delivery – a sign that the sector has moved well beyond experimentation. From dynamic promotions and personalized discounts to predictive merchandising and content tailored to local tastes, AI is helping brands fine-tune CX with increasing precision.”
Apply Digital found that nearly roughly eight-in-10 (79%) consumers in the United States said personalization is important to them, compared to 63% in the U.K. who feel the same way. Sixty-one percent of respondents overall said they are willing to share more personal information with businesses to enjoy personalized experiences, but many of those willing to make the trade said they are only comfortable doing so if they have control over what data is shared.
The most-favored uses of personalization tools by consumers include personalized discounts (64%), seasonal promotion notifications (60%), and location-based notifications (58%). A previous report from Apply Digital notes that consumers are 41% more likely to buy from a business after a personalized experience.
[READ MORE: Study: Personalized messages drive loyalty, sales]
“Today’s consumers expect engaging experiences, but personalization isn’t just about engagement,” said Sarah Hackett, senior VP of growth at Apply Digital. “One-to-one experiences drive revenue, repeat purchase, and long-term growth. That’s why the retail brands that combine AI with empathy and trust won’t just meet customer expectations – they’ll define them.”
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.
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