Guide: Generative AI for SMS Marketing (2025)

Ever feel like your SMS marketing is more miss than hit? You’re not alone. Writing messages that actually grab attention, feel personal, and drive action is tough, especially at scale. But here’s a twist: generative AI is quietly rewriting the rules. It helps you create smarter, faster, and more targeted SMS campaigns without losing that human touch.

And the numbers don’t lie—by 2032, the generative Artificial Intelligence industry in marketing is expected to explode from $1.9 billion in 2022 to $22 billion.

In this guide, you’ll learn:

• How generative AI is reshaping SMS marketing and customer communication
• Real ways to use AI for content creation, personalization, and automation
• Actionable tips to build smarter, data-driven SMS marketing campaigns

Brands are Making Millions by Leveraging Generative AI for SMS

Generative AI has officially entered the chat. It’s changing how e-commerce businesses create, send, and optimize SMS marketing campaigns by taking over the heavy lifting in the message creation process. Instead of spending hours crafting individual text messages, brands are now using artificial intelligence to instantly generate content that’s personalized, engaging, and on-brand.

This shift is happening fast, and the stats say it all:

• 83% of companies using SMS marketing have integrated AI into their strategy just this year.
• 81% are using generative AI tools like ChatGPT to help write their SMS marketing messages.
• 50% are using it to automate appointment reminders.
• 39.5% use AI for billing and collections via SMS messages.
• 57% rely on AI for customer satisfaction surveys and review requests.
• 37.3% apply it for customer service or “text-for-info” responses.
• And 33.8% are using AI-generated messages to announce new offerings.

P.S. TxtCart is leading the charge by making AI-powered SMS marketing smarter and conversational. Unlike other tools that bounce messages between bots and agents, Txtcart’s intelligent AI handles entire conversations end-to-end, 32 times cheaper than human agents. With features like AI-assisted copy, smart segmentation, and real-time analytics, you can see up to 10x ROI

Read Next: 9 Conversational SMS Examples That Generated $6M+

Top Benefits of Using Generative AI in SMS Marketing

As businesses seek innovative ways to engage their intended audience, the benefits of incorporating Generative AI into content strategies become increasingly evident.

Some very REAL benefits reaped by businesses using Generative AI are:

• Enhanced personalization at scale: AI analyzes customer data to craft truly personalized text messages, moving beyond just using first names to include preferences and behaviors. For instance, TxtCart’s smart customer segmentation feature enables hyper-targeted campaigns, allowing you to send relevant offers to specific groups like repeat buyers or those with abandoned carts.

• ​Improved efficiency and productivity: Marketers report that generative AI can save them over five hours of work per week. Automating the content creation process with AI saves time and reduces costs associated with manual campaign management. Repetitive tasks are handled seamlessly while maintaining message quality. TxtCart’s AI copy assistant helps you generate high-converting SMS messages in minutes, streamlining the workflow. ​
• Consistent brand voice across all communications: Maintaining a cohesive brand identity is crucial. AI ensures that personalized messages align with the brand’s voice, creating a unified customer experience across various touchpoints.
• Enhanced customer engagement and conversion rates: AI-crafted messages tend to drive higher open and click-through rates due to their relevance and timeliness. Personalized recommendations can significantly boost conversions. For example, Gamenetics added an additional $8,500 in revenue within 45 days using TxtCart’s AI-powered SMS marketing.

Practical Applications of Generative AI in SMS Marketing

Let’s be real, it’s one thing to know what generative AI can do, but it’s way more useful to know how to actually use it in your SMS marketing.

Below are some powerful, real-world ways AI can make your messages smarter, faster, and more effective.

1. Abandoned cart recovery

Cart abandonment happens more often than we’d like, but that doesn’t mean those sales are lost. Generative AI helps turn abandoned carts into recovered revenue by crafting SMS reminders that feel personal and timely, not robotic or spammy.

• Optimal timing strategies: Timing is crucial in cart recovery efforts. Generative AI doesn’t just guess, it learns. It looks at customer behavior patterns, like:
  • When someone typically opens messages
  • How quickly they respond
  • Even what time of day they’re most active online
  Based on this data, AI can schedule reminders during windows when the customer is most likely to notice and engage. TxtCart Scheduler takes this a step further with timezone-aware scheduling, ensuring no customer gets a message at 2 AM (because, let’s be honest, that’s an instant opt-out).
• Personalized recovery messages: When someone leaves items behind, AI can instantly generate text messages that speak directly to them, mentioning:
  • What they left behind
  • When they shopped
  • How they’ve interacted before
  It can offer a gentle nudge, or even throw in a little incentive. Instead of a generic “Hey, you forgot something,” you get a message that feels like it came from a real human, one who knows exactly what’s in your cart. Here’s a quick example: An online shop that sells earmuffs used TxtCart’s AI to re-engage Jess after she left her cart without completing the purchase.

Txtcart’s automated cart recovery feature sends personalized AI SMS reminders by tapping into the product catalog and customer behavior. It helps bring shoppers back and, more importantly, gets them to hit “buy.” For instance, Joyride used TxtCart’s two-way AI SMS to recover abandoned carts, generating $1.84M in SMS-attributed revenue.

Read Next:

• 10 Abandoned Cart Text Message Examples You Need to Steal
• We Tried 10 Cart Abandonment Tools – This One Stood Out!
• The Best Time to Send SMS Marketing Messages

2. Personalized product recommendations

Let’s face it, most people scroll past generic product promos. But when a recommendation feels spot-on, it grabs attention and drives clicks. That’s where generative AI shines.

Generative AI can become your virtual shopping assistant by continuously analyzing customer data. Leveraging preferences, purchase history, and browsing behavior, it suggests personalized product recommendations in real time, enhancing the shopping experience and boosting sales.

Here’s how it works:

• It learns from real behavior: Not just what someone bought, but what they browsed, added to cart, or clicked on and didn’t purchase. This helps predict what they’re most likely to want next.
• It personalizes at scale: Instead of sending the same product to your entire list, it helps send different recommendations to different segments, automatically and in minutes.
• It drives real results: A timely, relevant recommendation can turn a casual browser into a buyer, especially when the message feels tailored just for them.

Customer Segment	AI-Driven Recommendation Strategy	Example Recommendation
First-time Buyer	Recommend bestsellers or starter bundles to build trust	“New here? Try our customer favorites to get started.”
Repeat Customer	Suggest complementary or upgraded products based on past purchases	“Loved your last purchase? This one pairs perfectly with it.”
Abandoned Cart User	Recommend the item they left behind with an added incentive	“Still thinking it over? Grab it now for 10% off.”
Loyal/VIP Customer	Offer early access to new releases or exclusive product bundles	“As one of our top customers, here’s a first look at what’s next.”
Seasonal Shopper	Suggest time-sensitive or seasonal items based on previous buying patterns	“Get ready for summer with these top picks just for you.”

TxtCart’s campaign analytics highlight your top-performing products so you know exactly what’s working. Combine that with its AI-powered copy and smart segmentation, and you get a system that delivers the right products to the right people at just the right time. It’s like giving each subscriber their own personal shopper, without the overhead.

For example, Organi, a haircare brand, used TxtCart’s conversational AI to send personalized product recommendations based on a customer’s recent purchase. The result? 1M+ in SMS revenue!

Read Next:

• What is SMS Personalization – Key Tips and Advice
• How to Send Personalized Text Messages That Sell
• What is SMS Segmentation, Best Practices & Examples

3. Automated customer service

No one likes waiting on hold or digging through an email chain just to ask, “Where’s my order?” This is where generative AI really earns its spot. Instead of leaving customers hanging, AI can create a direct, two-way SMS channel that feels personal, responsive, and—best of all—instant.

Here’s how it works:

• Answers FAQs instantly: Whether it’s “What’s your return policy?” or “When will my order ship?”, AI can reply with helpful, accurate answers in seconds. It pulls from a pre-loaded knowledge base and responds just like a real support rep would (minus the delays).
• Keeps customers in the loop: It doesn’t stop at answering questions. AI can send proactive updates too, order confirmations, shipping alerts, and delay notices, before the customer even thinks to ask, as shown in the image below. That kind of marketing communication builds trust and keeps the experience smooth.

TxtCart’s conversational SMS marketing brings this to life. Its AI handles back-and-forth chats with customers—acknowledging issues, offering solutions, and even handling resolutions. The best part? It’s all done through friendly, natural language that feels human, not robotic.

Here’s how Haute Home used TxtCart’s two-way conversational AI to instantly answer product questions and guide a customer through personalized furniture recommendations.

Bonus: While typical agent support might cost $16 per issue, TxtCart’s AI can do it for around $0.50, thanks to smart automation and fully AI-managed conversations.

4. Seasonal promotions

Holiday sales, flash deals, Black Friday madness—we all know seasonal moments are prime time for driving revenue. But keeping up with the pace and pressure of crafting the perfect promo message every time? Not easy. That’s where generative AI steps in as your behind-the-scenes marketing partner.

Instead of starting from scratch for every holiday, AI can help you spin up festive, on-brand, and high-converting messages in minutes.

Here’s how it helps you win the season:

• Craft messages that feel urgent and exciting: AI doesn’t just write—it knows how to sell. It can craft messages that create urgency (“Only 24 hours left!”), stir excitement (“Your holiday wishlist just got better!”), or tap into the mood of the season—all while staying true to your brand voice. Below we have shared a perfect example of this:

• Personalizes offers based on customer preferences: AI looks at customer data, like past purchases or shopping behavior, and tailors promotions that actually match each person’s interests. For example, someone who shopped for skincare last winter might get a text offering early access to your new holiday bundle.
• Speeds up the content creation process: Instead of writing dozens of different campaigns, you can feed AI a few details—like the product, offer, and target audience and let it do the heavy lifting. TxtCart’s AI copy assistant makes this especially smooth, letting you generate high-converting seasonal promos in just a few clicks.

The result? More relevant messages, less stress, and better performance—just in time for your busiest selling seasons.

Read Next:

• 16+ Black Friday SMS Templates, Timing, & Examples (Guide)
• 12 Days of Christmas SMS Templates That Actually Make Sales
• End of Year SMS Marketing Campaigns to Close the Year Strong

5. Event reminders

Ever had people register for an event and then totally forget to show up? It happens. But with generative AI in your corner, it doesn’t have to. Think of it as your virtual assistant, one that never forgets to follow up.

Here’s how it helps you show up:

• Automates the follow-up (Without the fuss): Generative AI can create and send short, clear reminder texts that keep your audience informed and engaged. Whether it’s a webinar, product launch, sale, or local event, the AI ensures your message goes out on time—no last-minute scrambling.
• Tailors the timings and different tones: Instead of blasting a reminder to everyone at the same time, AI learns when each segment is most likely to engage. It also adjusts the tone to match your brand—whether you want to sound fun, formal, or friendly.
• Includes the right info, every time: Reminders crafted by AI don’t just say “Hey, don’t forget!”—they include key details like date, time, location, and even links to RSVP, join, or add to the calendar. It’s quick, helpful, and reduces confusion (and no-shows).

Using TxtCart’s automation, these event reminders can be triggered based on registration, timing, or even interest level—so the right message lands with the right person, right when they need it.

Here’s a perfect example of it:

Read Next: Strategies to Boost Sales From Your SMS Automation 2025

6. Customer surveys and polls

Getting useful customer feedback can feel like pulling teeth. Most people ignore long, boring surveys. But with generative AI in the mix? Feedback becomes fast, simple, and actually kind of fun.

Here’s how AI makes it easy to listen and learn:

• Keeps it short, smart, and to the point: AI knows how to ask the right questions—short, conversational ones that don’t feel like a chore. Instead of overwhelming your customers, it can turn a simple text message into a quick check-in that captures real insights.
• Personalizes every ask: Instead of sending the same poll to everyone, AI can tailor questions based on the customer’s past purchases, engagement, or experience. Someone who just bought from you might get a quick “How did we do?”—while a repeat customer could be asked about new features or product ideas.
• Analyzes feedback instantly: Once responses roll in, AI doesn’t just collect them—it processes and analyzes them in real time. That means you get clear, actionable insights about customer satisfaction, preferences, and what they want more of.

For example, Shogun leveraged TxtCartto recover lost revenue and send personalized customer feedback requests.

In just 28 days, they saw impressive results:

• $13,847.87 in added revenue
• 15.66x ROI from SMS campaigns
• 14% of checkouts recovered

Looking for inspiration for a feedback request SMS? Here’s the message Shogun sent:

7. Flash sales & exclusive offers

Flash sales are all about speed, timing, and the “you snooze, you lose” vibe. But pulling together a compelling message that actually gets people to act—fast—can be a challenge. That’s where generative AI works its magic.

Here’s how it helps turn urgency into action:

• Taps into urgency and exclusivity: Whether it’s “only 50 left” or “your VIP access expires in 3 hours,” AI understands how to use powerful triggers that drive FOMO (fear of missing out). These aren’t just words—they’re tested tactics that get results.
• Pinpoints your best buyers instantly: AI looks at who’s most likely to engage and buy, based on past behaviors, preferences, and timing. TxtCart makes this easy with smart segmentation and scheduling, so your flash sale texts land with the people most likely to hit buy now.

PupSocks leveraged TxtCart’s AI-powered SMS marketing to maximize seasonal promotions and drive holiday revenue.

Here’s the SMS they sent to promote their seasonal offers:

Read Next: 11 Types of Discounts to Use in SMS Marketing Campaigns to Drive More Sales

Implementation Strategy for Generative AI in SMS Marketing

Knowing the power of generative AI is great, but knowing how to actually implement it in your SMS campaigns? That’s where the results start to show. It all begins with setting the right direction from the start.

1. Define clear campaign goals

Before jumping into AI tools and tech, step one is asking: What do I want this campaign to achieve? Without a clear goal, even the smartest AI can’t work its magic effectively.

To get it right, you can follow these tips:

• Set specific, actionable objectives: Are you trying to recover carts, promote a seasonal sale, drive feedback through surveys, or boost product upsells? The more specific your goal, the better AI can help you reach it.
• Align AI features with your business goals: Use AI where it solves real bottlenecks. Here’s how to match the tool to the task:
  • Short on time for writing? Use AI-powered copy to generate flash sale messages in minutes.
  • Lost touch with repeat buyers? Use smart segmentation to send targeted win-back campaigns.
  • Need to increase basket size? Use AI-driven product recommendations to upsell and cross-sell.
• Choose the right KPIs to measure success: Once your goals are set, it’s time to define what success actually looks like. Without clear KPIs, you won’t know what’s working (or what needs fixing). The right KPIs help you track progress, optimize performance, and improve ROI.Here’s a quick breakdown:

Campaign Focus	Key KPIs to Track
Cart Recovery	Recovery rate, click-through rate (CTR)
Flash Sales & Promotions	Revenue spike, time-to-purchase
Customer Feedback	Survey response rate, satisfaction score
Product Upselling	AOV (Average Order Value), conversion rate

Read Next: SMS Marketing Analytics: 10 SMS Metrics You Cannot Ignore

2. Build a comprehensive customer dataset

Great AI SMS marketing doesn’t start with a message—it starts with customer data. The more your AI knows about your audience, the more personalized, timely, and relevant your SMS messages will be.

But it’s not about collecting everything. It’s about gathering the right kind of data, and doing it ethically.

So, what data actually powers successful SMS marketing campaigns? Here’s a quick breakdown:

Data Type	What It Includes	Why It Matters
Basic Info	Name, phone number, location, timezone	Enables personalized greetings and sends messages at the right time
Behavioral Data	Purchase history, browsing behavior, cart activity	Helps recommend products and recover abandoned carts
Engagement Data	SMS open rates, click-through rates, replies	Reveals what content resonates and when to follow up
Preferences	Product likes/dislikes, preferred offers, communication tone	Allows AI to create personalized offers and engaging SMS messages
Customer Segments	First-time shoppers, repeat buyers, inactive users	Supports targeted campaigns and a tailored messaging strategy

Now, how do you collect that data, without being creepy?

• Be transparent: Tell your audience what you’re collecting and why. This builds trust and encourages opt-ins.
• Use interactive SMS: Quick polls or reply-based messages make it easy to collect preferences in a conversational way.
• Connect your tools: Platforms like TxtCart sync with your eCommerce backend to pull in real-time customer data automatically.
• Respect boundaries: Collect only what’s useful. Always offer an opt-out or preference center to build long-term customer relationships.

3. Create effective AI prompts

AI can do a lot, but it still needs a little direction. This is where ‘prompt engineering’ comes into play. A solid AI prompt should include:

• Role – Tell the AI who it is (e.g., “Act as an SMS marketing expert.”)
• Task – Explain what you want (e.g., “Create a message for a weekend sale.”)
• Context – Share key details (e.g., “This is a 48-hour flash sale on skincare products.”)
• Format – Be clear on structure (e.g., “Standard SMS message, under 160 characters.”)
• Constraints – Add any limits (e.g., “Use a friendly tone and include a call to action.”)

Examples of effective AI prompts

Campaign Type	Prompt Example
Abandoned Cart	“Act as an SMS expert. Write a friendly reminder for a returning customer who left sneakers in their cart yesterday. Mention a 10% discount. Format: text message, max 160 characters.”
Flash Sale	“Create an urgency-driven SMS for a 48-hour flash sale on skincare bundles. Keep it short and persuasive.”
Product Recommendation	“Suggest 2 product add-ons for someone who just bought a yoga mat. Use a warm, conversational tone. Under 150 characters.”
Customer Feedback	“Write a quick SMS asking a new customer for feedback after purchase. Offer 10% off as a thank-you. Friendly tone, max 160 characters.”

4. Regularly test and optimize

Even the smartest AI-generated SMS message isn’t perfect on the first try—and that’s completely okay. The real results come from testing, learning, and fine-tuning your approach over time. This is how you make your SMS marketing campaigns more effective with every send.

To do it right, you can follow these tips:

• Run A/B tests regularly: Test different AI-generated versions of your message. Try swapping out openers, call-to-actions, tone, or even timing. Just make sure to test one variable at a time so you can pinpoint what actually works.
• Use real audience segments: Don’t just test randomly—test with specific customer segments like first-time buyers vs. loyal repeat customers. AI performs better when you’re refining content for a well-defined target audience.
• Track the right performance metrics: Look at recovery rates, open rates, click-through rates, response volume, and revenue impact. These will tell you what’s connecting—and what’s not.
• Analyze what the data tells you: Which version performed better? Why? Look for patterns across multiple sms campaigns to uncover what resonates consistently. For example, you might find that shorter, direct messages perform better with first-time buyers, while returning customers engage more with friendly, conversational text messages that include product recommendations.
• Feed those insights back into your prompts: Use the results to refine your prompt structure, messaging tone, or timing strategy. This creates a feedback loop that powers ongoing improvement.

Read Next: SMS A/B Testing: 15 Types of SMS Tests & Examples

5. Ensure compliance and privacy

You could craft the perfect, AI-powered SMS message, but if it’s not compliant with privacy laws, it could cost you more than a few unsubscribes.

Here’s how to do that well:

• Know the rules (and follow them): Whether you’re marketing in the U.S., EU, or anywhere else, you need to stay compliant with regulations like TCPA, GDPR, and CCPA. That means only messaging customers who’ve explicitly opted in and securely storing their customer data.
• Get clear opt-in consent (before hitting send): Consent isn’t just a checkbox—it’s the foundation of responsible SMS marketing. Make sure customers explicitly opt in before receiving any messages. Use clear, upfront language to explain what they’re signing up for—especially when your campaigns are AI-powered or automated.

• Make opting out easy and obvious: Every message should have a clear way to unsubscribe—whether that’s replying “STOP” or clicking a link. It’s not just a legal requirement; it builds trust and shows customers you respect their choices.
• Protect and respect customer data: AI is powerful because it can analyze customer preferences, behavior, and purchase history—but only if that data is handled ethically. Be transparent about how it’s collected and used, and avoid over-personalization that might feel invasive.

Read Next:

• All you could know about SMS Marketing Compliance for Shopify
• Complete Guide to SMS Marketing Compliance
• The Ultimate Guide to SMS Opt-in for 2025 (Tips + Examples)

6. Integrate with your broader marketing strategy

AI-powered SMS shouldn’t operate in a silo—it should complement everything else you’re doing. To create a seamless customer experience, your SMS marketing strategy should work hand-in-hand with your email campaigns, social media, and even on-site messaging.

Here’s how to do it well:

• Keep messaging consistent across all channels: If someone gets an SMS about a flash sale, they should see the same offer in your emails and social ads. This keeps the experience cohesive and helps build trust.
• Tailor your tone for each touchpoint: Use AI to adapt your marketing messages to fit the platform, while still maintaining a consistent brand voice. A casual SMS, a more detailed email, and a sharp ad can all feel aligned.
• Connect your tools to streamline workflows: Platforms like TxtCart integrate seamlessly with Shopify and other eCommerce systems, pulling in real-time customer data to automate campaigns, track performance, and trigger messages at just the right time.

When your AI SMS marketing works together with your other marketing channels, your entire strategy becomes smarter, smoother, and more effective.

Read Next:

• 7 Best eCommerce Sales Channels for Scaling Your Business
• 11 Best eCommerce Integrations for Your Online Store in 2025

Embrace the future of SMS Marketing with Txtcart

Generative AI is reshaping how brands connect with customers, and TxtCart is leading the way. From personalized campaigns and smart segmentation to AI-assisted copy and real-time analytics, it’s everything you need to run high-performing SMS marketing campaigns at scale.