Personalization combined with AI is about to change Europe’s digital landscape forever. This power couple can provide market differentiation through its ability to deliver highly relevant digital experiences continuously and at scale. Firms must evolve through four developmental stages to maximize the value of AI in personalization while mitigating the significant risks. Firms must achieve the required level of data, algorithmic skills, resources, and governance before moving from one stage to the next. This report gives European firms a framework to help them seize the opportunity of AI-driven personalization while avoiding its potential pitfalls.