AI-driven personalization has revolutionized marketing by enabling businesses to create highly tailored customer experiences. This chapter explores the role of AI in shaping personalized marketing strategies, emphasizing the advancements in machine learning, natural language processing, and predictive analytics. It discusses how AI enhances customer engagement through hyper-personalization, integrating technologies like augmented reality (AR) and virtual reality (VR), and addresses the ethical considerations and challenges involved. Practical tips and best practices for implementing AI-driven personalization, including data quality management, tool selection, and ethical practices, are provided. Future trends such as predictive analytics and AI-generated creative content are highlighted as key areas for continued development. Businesses that effectively harness these AI capabilities can achieve significant improvements in customer satisfaction and loyalty.