Device Personalization Services is a system component which adds smart predictions across Android: Suggested Actions in Launcher, Smart Text Selection in Overview and elsewhere, and automatic Linkifying of text.
Device Personalization Services uses system permissions to provide smart predictions. For example, you may see a suggestion to call a frequent contact or return a missed call. It uses your location to link you to the right nearby restaurant when you select its name. Device Personalization Services is part of the OS and you can control it in Home settings.