Beyond SMS: How AI is changing way Indian businesses reach customers

At IMC 2026, Authkey and Airtel showcased platforms combining SMS, WhatsApp, RCS and AI as businesses shift from one-way notifications to automated customer conversations

India's enterprise communications market is moving beyond conventional short message services (SMS) and one-way notifications as businesses use WhatsApp, Rich Communication Services (RCS), voice and artificial intelligence (AI) to interact with customers. At India Mobile Congress (IMC) 2026, this shift was visible in the way companies are building platforms that combine multiple communication channels with tools to manage customer responses, qualify leads and automate routine interactions.

 

One of the companies showcasing this approach was Authkey.io, an India-based communications platform that is bringing messaging, customer conversations and AI-led automation onto a single platform.

 

What is CPaaS?

 

Communications Platform as a Service (CPaaS) allows businesses to integrate communication services such as SMS, WhatsApp, voice, email and RCS into their applications and workflows through application programming interfaces (APIs). Instead of developing and maintaining separate infrastructure for each communication channel, businesses can use a CPaaS provider to manage these services through a common platform.

 

 

The market has moved beyond sending messages. Businesses now want to receive responses, manage conversations across channels and automate parts of customer interactions. This is where AI is becoming part of the CPaaS stack.

 

From sending messages to handling responses

 

Authkey's platform is built around two-way communication, according to its founder, Ashish Jha. "We have built an ecosystem where businesses can send and receive messages. So this is a two-way communication with AI handling your responses," he said.

 

The platform can also work with businesses running Facebook advertisements. Its AI bot can qualify leads generated through those campaigns, while businesses can add frequently asked questions and answers. The bot then responds to customer queries based on their intent.

 

Jha said the platform is focused on reducing the time businesses spend filtering irrelevant enquiries. "So now the business has to focus only on the productive part, not on filtering leads like contacting a junk lead, spam lead, leads which are not relevant to their business," he said.

 

The platform can also raise support tickets and schedule appointments. Multiple teams and human agents can be added, with the system functioning as what Jha described as an "entire team inbox". The emphasis, therefore, is not only on delivering a message but also on what happens after the customer responds.

 

AI that learns from business queries

 

Authkey is also working on a custom AI system that will be built using data received from businesses. "Slowly and gradually our custom AI will adopt their business," Jha said.

 

The platform has a provision for queries that its AI bot cannot answer. These "missed queries" are shown to the business, which can add an answer. Jha said the custom AI will learn from these additions.

 

This points to a broader shift in CPaaS, where communication platforms are being used as an interface between businesses and their customers rather than simply as an API for sending messages.

 

When asked whether the rise of AI was also creating challenges, including concerns around scams, Jha said Authkey has a "secured platform" and is certified following vulnerability assessment and penetration testing (VAPT), with a separate team handling security. He said customers have the option to hide their data and prevent it from being downloaded or viewed by others. The platform also masks mobile numbers, with the first five digits visible while the remaining five digits are hidden. According to Jha, these features have been added to help businesses keep customer data secure.

 

Airtel's IQ Gateway shows a similar shift

 

A similar development is emerging from the telecom side. Airtel Business launched IQ Gateway on October 5, bringing SMS, WhatsApp, RCS, business voice and number verification into a single enterprise communications platform. Airtel is also showcasing the platform at IMC 2026.

 

The relevance to Authkey is the move towards a common communications layer. Both developments reflect businesses' need to manage several communication channels instead of relying on a single route such as SMS.

 

The approaches, however, are different. Authkey is combining communication APIs with lead qualification, customer support and AI-based responses, while Airtel is bringing multiple communication channels and telecom capabilities under its enterprise platform.

 

The development also reflects how CPaaS is expanding beyond traditional messaging APIs. SMS, WhatsApp and RCS can increasingly be treated as different routes through which a business manages the same customer relationship. 

 

India moves towards consumer-preferred channels

 

For Authkey, the demand is being driven partly by the growth of digital advertising among Indian businesses. "Currently, Indian businesses are growing like anything, they are using Instagram ads, Facebook ads," Jha said.

 

The challenge, according to him, is that businesses can receive a large number of leads, but only a portion may be relevant. In his example, a business could receive 100 leads, of which only 20 are relevant.

 

Authkey is also building its platform around the idea that consumers should be able to receive communications through their preferred channel. "If their consumer is comfortable with SMS, they can send a message through SMS if their consumer is comfortable with RCS or WhatsApp, this is a consumer preferred channel they can use," Jha said.

 

The platform can also track engagement. If a consumer receives WhatsApp messages but does not read or respond to them, Authkey can try another channel, such as RCS or SMS. 

 

WhatsApp and RCS gain ground

 

The move towards multiple channels is also visible in global messaging data. Infobip's 2026 messaging report found that RCS interactions in India grew 70 per cent, while WhatsApp interactions grew 20 per cent.

 

This gives India a different communications environment from markets where SMS remains the primary business messaging channel. WhatsApp's large user base, growing RCS adoption and increasing use of digital advertising are creating demand for platforms that can bring different channels together.

 

Globally, CPaaS providers such as Twilio and Sinch have similarly expanded from basic messaging APIs into broader customer engagement platforms, with conversational AI and multiple communication channels becoming part of their offerings.

 

Jha said onboarding is a problem businesses face. For businesses testing a one-time password (OTP) or API service, he said, waiting two or three days for onboarding can be a problem.

 

The common thread is the move from sending a message to managing a conversation. For Indian businesses, that transition is taking place alongside the rapid adoption of WhatsApp, RCS and digital advertising, giving CPaaS companies a larger role in how businesses communicate with customers.