AI for Small Business: How Managers Are Using AI Across Industries in 2025

Introduction

Artificial Intelligence (AI) isn’t just a tool for CEOs and business owners anymore. Mid- and lower-level managers in small businesses are increasingly using AI tools to streamline operations, improve decision-making, and boost productivity.

According to the ICIC 2024 survey of business owners, adoption of AI by managers varies significantly across industries. Some sectors show strong integration of AI into daily workflows, while others are still lagging behind.

At Flowbot Forge, we help ambitious small businesses turn AI into a growth driver. Here’s a breakdown of how managers are using AI across different industries in 2025.

Industries Where Managers Are Leading in AI Adoption

Information (49.4%)

The information sector leads with nearly half of managers using AI. From data analysis and content generation to automated workflows, AI tools are becoming essential for knowledge-driven businesses.

Other Services (51.4%)

This broad category (excluding public administration) shows the highest rate of AI adoption among managers. Businesses in this group are leveraging AI for customer service, scheduling, and back-office automation.

Manufacturing (43.5%)

In manufacturing, managers are adopting AI for predictive maintenance, supply chain oversight, and production efficiency. This helps smaller firms stay competitive with larger players.

Educational Services (40.8%)

AI in education is not only for owners — managers are actively using it for student engagement, grading support, and administrative automation.

Mid-Level Adoption Industries

Professional, Scientific, and Technical Services (36.7%)

Managers in professional services are using AI for workflow optimization, data modeling, and client reporting.

Real Estate and Rental and Leasing (37.3%)

AI tools help managers streamline tenant management, leasing paperwork, and property data analysis.

Accommodation and Food Services (34.1%)

Restaurant and hotel managers use AI for booking systems, menu pricing, and customer service bots.

Industries Slower to Adopt AI

Transportation and Warehousing (28.4%)

Managers are beginning to use AI for route planning and inventory control, but adoption remains limited.

Construction (26.0%)

Construction managers are slowly applying AI to project scheduling, safety monitoring, and budgeting.

Health Care and Social Assistance (23.8%)

While AI has great potential in healthcare, adoption among small business managers is still emerging.

Retail Trade (23.4%)

Despite owners in retail adopting AI at high rates, mid- and lower-level managers are slower to integrate AI into daily retail operations.

Finance and Insurance (16.0%)

Only a small percentage of managers are using AI here, even though business owners in this sector show higher adoption. This signals a disconnect between strategic and operational use of AI.

Arts, Entertainment, and Recreation (18.0%)

Creative industries are just starting to explore how managers can apply AI to improve marketing, ticketing, and personalized experiences.

Other Industries (16.2%)

This catch-all group has the lowest adoption, highlighting significant untapped potential.

What This Means for Small Business Owners

The data makes it clear: AI adoption by managers is uneven across industries. Owners may be investing in AI, but if managers aren’t trained and empowered to use these tools, the full business value won’t be realized.

At Flowbot Forge, we see this gap as an opportunity. Companies that not only adopt AI at the leadership level but also train their managers to use AI daily will scale faster, serve customers better, and run more efficiently.

Final Thought

AI for small business isn’t just about strategy — it’s about execution. Mid- and lower-level managers play a critical role in driving day-to-day performance. By equipping managers with AI tools, small businesses can bridge the gap between vision and results.

At Flowbot Forge, we help small businesses fuel growth with AI automation that empowers entire teams — from leadership to frontline managers.