Generative AI In Marketing Market: Retail Reinvented with Intelligent Insights

The global generative AI in marketing market was valued at USD 1.98 billion in 2022 and is anticipated to reach USD 22.02 billion by 2030, expanding at a CAGR of 36.1% from 2023 to 2030. This rapid growth is primarily driven by the increasing demand for enhanced customer engagement and automated, personalized content creation.

A key driver of this market is the rising adoption of AI-powered chatbots. These systems utilize natural language processing (NLP) to address complex customer queries in real time, helping companies deliver 24/7 support and boosting customer satisfaction and retention. Businesses benefit from reduced response times and improved customer experiences.

In addition to service automation, generative AI is reshaping how personalized content is delivered. Marketers are using AI to craft customized emails, landing pages, and product recommendations. For example, a fashion retailer might employ generative AI to analyze browsing history, previous purchases, and social media behavior to offer tailored product suggestions, increasing the likelihood of conversion and customer loyalty.

Another area of innovation involves augmented reality (AR) experiences. Generative AI is being leveraged to create AR scenarios that blend digital elements with real-world environments, providing immersive product interactions. For instance, a furniture company could utilize AR to help customers visualize how a piece of furniture fits into their home, enabling more informed purchasing decisions.

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Key Market Trends & Insights

• North America led the global market with a 33.0% share in 2022, driven by the widespread adoption of generative AI tools for real-time customer engagement. Enterprises in the region are integrating AI into chatbots, virtual assistants, and recommendation engines to enhance user interaction.
• By component, the software segment held the largest market share at 64.83% in 2022. A significant trend is the rise of automated content generation software that supports multichannel marketing campaigns, ensuring consistency across social media, emails, and websites.
• By system type, Text Models dominated with a 64.0% share in 2022. The growing development of Natural Language Generation (NLG) tools is enabling marketers to produce coherent, relevant, and structured content such as blog articles, product descriptions, and social media posts.
• By application, the Content Generation segment led the market with a 23.9% share in 2022. Generative AI is increasingly used to produce video scripts and storyboards, streamlining promotional video development aligned with brand messaging and campaign goals.
• By end use, Retail and E-commerce accounted for 21.5% of the market in 2022. As consumer expectations for personalized shopping experiences rise, retailers are deploying generative AI to analyze behavioral data and generate individualized recommendations and offers.

Market Size & Forecast

• 2022 Market Size: USD 1.98 Billion
• 2030 Projected Market Size: USD 22.02 Billion
• CAGR (2023-2030): 36.1%
• North America: Largest market in 2022
• Asia Pacific: Fastest growing market

Key Companies & Market Share Insights

The competitive landscape of the generative AI in marketing market is shaped by a limited number of dominant players focusing on technological innovation and strategic partnerships to strengthen their market positions.

• In March 2021, Altair Engineering Inc. introduced Thea Render V3.0, a 3D rendering solution powered by advanced GPUs. It features enhanced quality and performance tailored for graphics-intensive marketing tasks.
• In March 2023, OpenAI launched GPT-4, the latest generation of its AI model. GPT-4 is capable of generating and editing text, images, music, and videos based on user input, significantly expanding creative possibilities for marketers.

Key Players

• Adobe Inc.
• Amazon Web Services Inc.
• Genie AI Ltd.
• Google LLC
• IBM Corporation
• Microsoft Corporation
• MOSTLY AI Inc.
• Open AI
• Synthesis AI
• Paige.AI
• Rephrase.AI

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Conclusion

The global market for generative AI in marketing is undergoing transformative growth, fueled by the increasing demand for personalized content, real-time customer engagement, and immersive user experiences. As technologies like chatbots, AR, and NLG evolve, businesses are finding new ways to optimize customer interactions and marketing efficiency.

With North America maintaining its lead and Asia Pacific emerging as the fastest-growing region, the adoption of generative AI across industries such as retail, e-commerce, and digital media is expected to continue accelerating. As more organizations embrace AI-powered tools, the market will see further innovations that redefine how brands connect with consumers in the digital age.