The news: Block’s Square announced Managerbot, a new AI business partner that surfaces timely insights and suggestions about business operations for owners, per a blog post.

• Managerbot can compile a snapshot of key performance metrics across sales, orders, items, and customer trends and answer questions about performance.
• It can also share data-backed suggestions for business areas that need additional oversight and provide possible solutions.
• It can also be tasked with completing scheduling, inventory management, marketing, and catalog and menu management.

Managerbot is in open beta, with the ability to only work with certain data sets and workflows. It currently lives in Square Dashboard and requires WiFi connection for use.

How we got here: Managerbot represents the general thrust of Block’s 2026 strategy, which is a continued hard pivot to AI. The firm generated press for its recent layoffs, which culled 40% of its total workforce, as it bets that AI tools will both transform internal and external workflows of clients. 

The AI tool also builds off earlier releases like Square AI and the success and insights of Cash App’s Moneybot.

Why this matters: As small businesses get hit by the pressures of tariffs and shocks from the Iran war, the POS provider that can offer meaningful ways to preserve margins under intense stress will earn volume. Block joins its peers in offering support to these SMBs, which also opens up volume opportunities as many consumers cut back their spending. 

• Mastercard inked a tie-up with Fiserv for ultra-low cost POS for SMBs.
• Visa launched Visa and Main, a commerce platform targeted at helping SMBs. 
• PayPal debuted PayPal Ads Manager, which gives SMBs the ability to create their own retail media networks (RMNs).
• Amex launched Graphite, a commercial credit card, in a bid to give small business owners value and flexibility for their businesses’ credit lines.

Implications for payment providers: Useful AI tools can attract businesses and drive profitable cross-selling opportunities. Square Loans’ origination volume grew 23% in its most recent earnings, suggesting that the providers that earn SMBs’ trust and loyalty are well positioned to capture lucrative lending demand Square is already preparing to extend credit to 50% more of its merchants this year.