AI and rich media take over

Mobile messaging is undergoing a radical change, with yesterday’s tools quickly becoming obsolete.

Analysis from Juniper Research in their ‘Mobile Messaging Tech Horizon 2025’ report shows a clear divide between the old and the new. It confirms what many will already suspect: the future of mobile messaging is dominated by smarter, interactive, and media-rich experiences.

That once-dominant SMS message is now considered an underperforming technology with declining potential. Why the fall from grace? Soaring costs and rampant fraud have driven businesses to look for better alternatives. Juniper Research bluntly states, “A2P SMS will decline as a business messaging channel over the next five years”.

It’s not just SMS, either. Its cousin, MMS, is also in the “technology graveyard”. After traffic in its key North American market dropped for the first time between 2023 and 2024, the report assesses that a comeback is “highly unlikely”.

The three mobile messaging technologies to watch

So, what’s taking the place of these legacy mobile messaging technologies? The report points to three “Major Movers” that are expected to make the biggest waves in the next 12 months:

1. RCS Business Messaging (RBM): For years, RCS – a richer, more interactive form of texting – was held back because it didn’t work on iPhones. That’s now changing. With Apple finally adding support, the floodgates are opening. The report predicts that, by 2025, two-thirds of all mobile subscribers will have RCS-capable phones, making it a valuable tool for businesses.

2. Number verification: You know those security codes you get via text? Many will know that it’s insecure and a target for fraud. The replacement is a smarter and more secure system using direct verification APIs from network operators. As businesses ditch the old method, these new APIs are set to become a key tool for mobile authentication.

3. Conversational AI: Thanks to more accessible cloud platforms, businesses of all sizes can now use AI to automate customer interactions with chatbots that actually work. As more companies adopt richer channels like RCS, they will increasingly rely on conversational AI to handle these chats and improve the customer experience while freeing up human agents.

The rise of smarter engagement

However, it’s not just those three mobile messaging technologies making noise. The report is bullish on a whole suite of smart technologies that are performing strongly, including:

• OTT business messaging: Channels like WhatsApp are booming, with revenues growing over 50% in 2024 alone. Their ease of use and rich features are making them a go-to choice.

• Generative AI: This technology is moving beyond hype and into practical use. Juniper Research forecasts its revenue in mobile messaging will explode from $800 million in 2024 to over $3.9 billion by 2026. It is being used to power more natural-sounding chatbots and create highly-personalised marketing messages.

• Agentic AI: Still in its early stages, this even more advanced AI uses multiple systems to automate complex tasks. Think of it this way: one AI writes a marketing message, and the agentic AI figures out the perfect person and time to send it for maximum impact.

• Customer Data Platforms (CDPs): To create the hyper-personalised messages these new channels allow, businesses need to understand their customers better. CDPs are becoming essential for gathering customer data and using it to personalise communications in real-time.

Not everything is a home run

Of course, not every technology is a runaway success. The report notes that some established tools, like CRM platforms, have become a bit stagnant in the messaging space. While still important, they have not evolved as quickly as other technologies.

Similarly, Sentiment Analysis Solutions – which help chatbots understand a user’s emotional state – have struggled. While powerful, they often fail to show a clear return on investment, making it a tough sell for smaller businesses.

Sticking with old-school SMS is no longer a viable strategy. The way brands and customers talk to each other is changing, and the future clearly belongs to those who adopt more secure and engaging mobile messaging technologies.

(Photo by Denis Cherkashin)

See also: Telcos pivot to services amid private 5G boom

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Tags: agents, ai, analysis, artificial intelligence, messaging, mobile, rcs, report, research, telecoms