ICIC Report: AI Becomes Key Tool for Inner-City Business Growth

BOSTON, MA – February 05, 2026 – The Initiative for a Competitive Inner City (ICIC) is betting on innovation, particularly artificial intelligence, as the primary engine for revitalizing local economies. In its 2025 Impact Report released today, the national nonprofit detailed a strategic pivot to embed emerging technologies into its core programming, helping thousands of small businesses in under-resourced communities across the United States and Canada to not just survive, but to compete and thrive.

The report, themed The Year of Innovation, documents how ICIC equipped 3,232 small businesses for growth and strengthened 1,317 communities in 2025. The organization's work is grounded in the principle that empowering local entrepreneurs is the most effective path toward building resilient and prosperous communities. This year, that empowerment came supercharged with a heavy dose of practical, accessible technology training.

“Innovation is how progress happens for small businesses—if you’re not moving forward, you’re falling behind,” said Steve Grossman, CEO of ICIC, in the report's announcement. “In 2025, we focused on turning innovation into action—pairing research with executive education, coaching, and practical tools to help entrepreneurs strengthen their businesses, create jobs, and drive economic opportunity in their communities.”

AI as the New Equalizer

Central to ICIC's 2025 strategy was a decisive move to demystify artificial intelligence for small business owners. Recognizing that AI could either widen the gap between large corporations and small enterprises or serve as a powerful equalizer, ICIC integrated AI training across all of its executive education programs. The goal was to move beyond the hype and provide entrepreneurs with the confidence to apply AI tools directly within their everyday workflows.

This initiative was not a shot in the dark; it was a direct response to the organization's own extensive research. A recent ICIC study of over 3,700 small business owners found that while nearly 89% were already using AI for tasks like marketing and data analysis, a staggering 72% cited a lack of knowledge about new digital tools as a significant barrier to deeper adoption. The data revealed a clear demand for practical education, with entrepreneurs most interested in learning how AI can boost profitability and how to get the best results from the technology.

To meet this demand, ICIC partnered with financial technology giant Intuit to launch the Intuit More with AI Tour. This six-city, half-day learning series provided small and mid-market businesses with hands-on exposure to AI tools and strategies for responsible implementation. The collaboration aimed to tackle the knowledge gap head-on, empowering entrepreneurs to leverage AI to save time, enhance productivity, and make more informed financial decisions.

A Legacy of Building Economic Resilience

While the focus on AI represents a forward-looking pivot, the 2025 report also serves as a testament to ICIC's long-term commitment and sustained impact. The organization celebrated several major milestones, underscoring a decades-long history of fostering economic growth in communities facing structural barriers.

This past year marked the 20th anniversary of ICIC’s flagship Inner City Capital Connections (ICCC) program. Over two decades, ICCC has held more than 160 cohorts and equipped over 7,700 businesses with the education, coaching, and access to capital needed to scale effectively. The tuition-free program has been a cornerstone of ICIC's mission to create sustainable growth and wealth in urban and under-resourced areas.

Furthermore, ICIC celebrated 15 years of a pivotal partnership with the Goldman Sachs 10,000 Small Businesses program. As the national outreach and selection partner, ICIC plays a crucial role in identifying and recruiting promising entrepreneurs for the intensive 10-week curriculum, which helps owners develop actionable growth plans. This enduring collaboration highlights a shared vision for unlocking the potential of small businesses as drivers of economic opportunity.

These milestones paint a picture of an organization that has consistently evolved its strategies while remaining true to the core mission established by its founder, Harvard Business School professor Dr. Michael E. Porter, in 1994: to use market-based solutions to drive inclusive prosperity.

From Buzzwords to Business Results

ICIC’s report makes a concerted effort to ground the often-abstract concept of 'innovation' in tangible, real-world applications. The organization emphasizes practical strategies that yield measurable results, a philosophy captured in a testimonial from one participating entrepreneur.

“Innovation isn’t always about big breakthroughs. Sometimes it’s about listening, staying curious, and learning from every step,” noted Mayumi Bae, Co-founder of The Plant Based Workshop, in the report.

This pragmatic approach is evident in the launch of another new initiative highlighted in the report: the Manufacturing Accelerator Program (MAP). This research-informed, 12-week virtual program is designed specifically to support small manufacturers at a critical stage of growth. By offering tuition-free, sector-specific guidance, ICIC addresses the unique challenges faced by manufacturers in areas like supply chain management, technology adoption, and workforce development. It’s another example of the organization translating broad economic theory into targeted, effective action.

These programs directly confront the systemic hurdles—such as limited access to capital and technical expertise—that have historically hindered businesses in underserved areas. By partnering with corporate funders and industry experts, ICIC provides resources that would otherwise be out of reach for many entrepreneurs, leveling the playing field one cohort at a time.

As ICIC transitions from its Year of Innovation, the report signals that the work is far from over. The organization has already designated 2026 as its Year of Changemakers, indicating a continued focus on empowering the individual entrepreneurs who form the bedrock of their communities. The 2025 results, driven by a blend of long-standing commitment and forward-thinking technological adoption, have set a formidable foundation for the year to come.