A Complete Guide to Using AI for SMS Marketing

With 90% of texts read within three minutes, SMS offers unmatched visibility. However, for many marketers, the real challenge is turning that attention into clicks and conversions. It’s like shoppers streaming into a mall, browsing every window, but leaving without making a single purchase.

AI-powered SMS marketing makes a difference here.

Instead of just getting your messages “seen,” AI SMS marketing helps you get them “clicked”, by delivering the right message to the right person at the right time.

In this guide, we’ll show you exactly how to use AI for SMS marketing. We’ll also help you identify common bottlenecks, explore how AI can solve them, and share actionable steps to help you hit your SMS campaign goals!

How AI SMS marketing benefits businesses

From automating message flows to predicting the best send times, AI in SMS marketing helps businesses save hours weekly on manual work.

But that’s not it. By integrating AI, you can:

Personalize at scale

Consumers have become experts at tuning out generic company messages, so the last thing you want is for your SMS campaigns to blend into the background noise.

SMS AI changes this. It dynamically tailors content based on customer demographics (like age, gender, and location) and real-time behaviors (such as purchase history or browsing patterns).

This means you can convert mass messaging into highly relevant, individualized communications that help you drive a higher return on investment (ROI).

Demographic-based variant example

For young adults (18–25): “Hey [Name], score 20% off the latest sneakers — just for students like you! Shop the trend now.”

Behavior-based variant example

Abandoned cart: “Hi [Name], you left something behind! Complete your purchase now and get free shipping.”

The power of AI for personalization in SMS marketing extends far beyond simple reminders or cart abandonment alerts. It even recommends products your users may like, adjusts pricing, and curates personalized campaigns. (More on this later in the article!)

Automate with intelligence

With intelligent SMS marketing automation, you can set up triggered workflows that respond instantly to customer actions.

An image showing how Plivo CX lets you build workflows and trigger events based on user input — Automate workflows with Plivo -Source

‍

For example, you can gently nudge when someone leaves items in their cart, send a thank-you note after their first purchase, or request quick feedback. Plus, with chat-style auto-replies and AI-powered bots, you can handle simple customer conversations, like answering FAQs or confirming appointments, right in the SMS thread, 24/7.

💡 Pro tip: Using Plivo CX lets you trigger personalized messages based on customer actions. Try out its pre-built templates and generate engaging content with its Copywriter AI!

Optimize with AI-powered A/B testing

With AI, you can test multiple message variations at once, track how different groups respond, and get early signals on what’s driving clicks or replies. AI spots patterns in open times, link engagement, and even response rates. Then, it helps you adjust content or timing before the campaign ends.

AI also determines the ideal send times for each audience segment so your SMS messages reach recipients when they’re most likely to engage. Plus, it continuously refines your campaigns in real time for maximum impact.

Example: Say you're promoting a flash sale. You test three versions of an SMS:

Version A highlights a 20 % discount
Version B uses urgency: “Only 3 hours left!”
Version C mentions free shipping

After sending these variants to different audience segments, the AI sees that:

Version A works best with price-sensitive users
Version B gets more clicks from frequent buyers in the afternoon
Version C performs better with new subscribers

Based on this, the system shifts more messages toward the best-matching version for each group before the sale ends. It also reschedules the next batch of texts to go out during each segment’s peak engagement window.

Let’s understand the benefits of AI in SMS marketing through its applications.

Practical AI SMS marketing applications

AI SMS marketing empowers you to hit your campaign targets, whether that means boosting click-through rates, driving more conversions, or increasing customer engagement.

But the real value lies in how AI achieves these results behind the scenes.

Smart segmentation

When 34% of consumers become annoyed by SMS messages irrelevant to their needs and interests, opt-out rates automatically increase. The reasons are ample: bad timing, irrelevant messaging, lack of personalization, unclear expectations, etc.

AI lets you automatically classify your audience into meaningful segments based on their engagement levels, purchase history, and behaviors.

For example, as shown in the image below, you might have segments like “High Value Customers” or “Holiday Shoppers.” This allows you to curate highly targeted campaigns for each group and deliver personalized offers, timely reminders, or exclusive deals.

An image showing the Plivo CX dashboard to create customer segments — Get 360° visibility about your customer, from storefront activity and engagement to purchases

Dynamic content insertion

AI-powered dynamic content lets you personalize each SMS with details like product recommendations, names, or exclusive offers.

For instance, if a customer abandons a cart with a specific item, the platform sends a message like, “Hi [name], your Nike Air Max is still waiting for you. Complete your purchase now and enjoy 10% off!”

This level of personalization boosts engagement and drives higher sales.

Automated replies and conversational flows

AI replies are smarter and more conversational than ever.

Modern AI SMS chatbots can handle FAQs, order status requests, and opt-out commands with natural, context-aware responses that feel genuinely human.

For instance, if a customer texts “Where’s my order?” or “I want to return product X,” they receive an instant, personalized update tailored to their situation. Even better? When a query is more complex or sensitive, the platform escalates the conversation to a human agent without delay.

An image showing Plivo chatbot processing a return request — Resolve customer queries within seconds with Plivo chatbots

Abandoned cart recovery

AI-powered abandoned cart recovery automatically adjusts tone, offer, and timing of messages based on each customer’s cart value and behaviors.

Behavior-triggered SMS

Apart from cart abandonment recovery and product recommendations, the use cases of AI in e-commerce include identifying fake reviews, fraud detection, and voice search optimization.

So if a customer suddenly places multiple high-value orders from different locations or uses inconsistent payment information, AI instantly flags the transaction as potentially fraudulent and triggers an SMS alert to both the customer and the internal risk team.

Upsell and cross-sell campaigns

SMS AI surfaces the right opportunities to recommend additional products that align with each customer’s preferences and actions.

For instance, after a customer buys a smartphone, Plivo’s Upsell and Cross-Sell Agent can follow up with a timely SMS recommending a phone case or screen protector. It can also optimize the timing of these offers, ensuring that suggestions are made when the customer is most receptive, such as right after the initial purchase or when they revisit the website.

Now that you know the benefits of AI SMS marketing, how do you find a platform that truly fits your business needs?

What to look for in an AI-driven SMS platform

When choosing an AI-driven SMS platform, focus on features that make your campaigns smarter. These include:

Machine learning for segmentation: Prioritize a platform that automatically sorts your audiences based on real behaviors and attributes. This way, you can send the right message to the right person, trigger events, and manage opt-outs.
NLP to generate messages: Look for built-in AI tools with natural language processing (NLP) that help you craft engaging, on-brand messages in seconds.
AI-based A/B testing and optimization: Choose a platform that can automatically test different versions of your SMS, analyze the results, and optimize future sends for higher conversions.
Auto-reply and AI bot integrations: Ensure it offers AI-powered SMS chatbots to manage FAQs, order tracking, and basic support, so your customers always get quick answers, even outside business hours.

Getting started: Steps to incorporate AI into your SMS strategy

Not sure where to begin with AI and SMS? You don’t need to overhaul everything at once.

Start by asking yourself: What are the current bottlenecks in your SMS campaigns? Are you aiming to boost conversions, increase CTR, or improve personalization?

Then, follow these steps.

Step #1: Audit your current SMS campaigns

Review your existing SMS templates and campaign workflows.
Identify repetitive manual tasks (like scheduling, segmentation, or copywriting) and areas where performance lags, such as low engagement or inconsistent personalization.
Analyze which types of messages and calls to action (CTAs) perform best to spot opportunities for AI-driven improvements.

Suppose you're promoting a new line of skincare products and want to boost conversions through SMS.

In this step, you review your recent campaigns and notice that most messages use the same generic copy (“Try our new skincare range!”) sent to your full contact list at the same time. Engagement is low, especially from existing customers. You also manually create reminder messages for cart abandoners, which takes up hours each week.

Step #2: Choose an AI-enabled SMS platform

Prioritize SMS solutions that offer advanced segmentation, predictive analytics, and automation tools to help you scale as your business grows. Easy integration with your current marketing stack is an added bonus.
Plivo CX is a strong option as it combines AI-driven segmentation, automated campaign workflows, and an OpenAI-powered copywriting tool to help you craft engaging, personalized messages at scale.

Step #3: Set up behavioral triggers and segmentation logic

Use AI to segment your audience based on behavior, purchase history, and engagement patterns.
Establish automated triggers for common scenarios (e.g., abandoned cart, post-purchase follow-ups, re-engagement) to ensure timely, relevant messaging.

Step #4: Test AI-generated copy vs. human-written messages

Run A/B tests comparing AI-generated SMS messages to those written by your team.
Ensure key metrics such as open rates, click-through rates, and conversions to determine which performs better.
Continuously analyze results and let AI optimize future campaigns based on what resonates most with your audience.

You’re crafting a follow-up SMS for customers who browsed the new cleanser but didn’t buy. Your team writes: “Still interested in our cleanser? It’s waiting for you.”

The AI suggests: “You checked out the GentleGlow Cleanser. Still thinking it over? Order now and enjoy free shipping.”

You send both to different groups. The AI-generated message sees more responses and higher click-throughs, likely because it feels more specific and timely. You apply what you learned to future abandoned cart reminders.

Step #5: Refine with retention signals

Monitor campaign results to see which segments engaged, converted, or dropped off.
Use AI to identify patterns across time, content style, and customer behavior.
Create follow-up segments like “one-time buyers” or “frequent clickers, no purchase” to guide re-engagement.
Adjust future campaign timing, message structure, and tone based on actual user feedback and engagement history.

After the skincare launch, you find that customers who bought the cleanser didn’t return for toner or moisturizer. You build a segment called “single-product buyers” and schedule a re-engagement SMS that recommends a complete routine.

AI also flags that messages with product bundles received fewer clicks than simple one-item offers. You revise your next campaign to feature only the top item with a clear CTA.

Let Plivo’s AI-powered platform handle SMS marketing

With so many AI-powered SMS marketing solutions on the market, it can be challenging to find one that truly fits your business. Many platforms either disrupt your existing communication systems or fall short when it comes to sounding genuinely human, leaving customers frustrated and your team with extra work.

Plivo is built to overcome these challenges.

It uses advanced NLP to understand and respond to customer messages just like a real person, so every conversation feels natural and engaging. And when a conversation gets too complex for AI, Plivo automatically routes it to a human agent.

Moreover, Plivo connects easily with popular platforms like Shopify, Salesforce, and HubSpot. So you can sync customer data, automate campaigns, and manage conversations without heavy IT involvement.

Customization is simple, too. You can quickly build custom AI agents tailored to your business goals, whether you want to engage, delight, or convert customers at different stages of their journey. Plus, it lets you set up automated workflows for each agent, so they can instantly trigger personalized messages based on real-time customer actions.

Ready to automate customer conversations? Get started for free with Plivo today!

‍

How to Use AI for SMS Marketing