Bowerman left Walsall after netting just one goal since September, and Smith has admitted that the 21-year-old's development had come to a halt.
The 42-year-old told the Express and Star: "I spent a lot of time and energy trying to get the best out of George this season.
"For whatever reason, it did not work. I could not get what I wanted out of him and I think, if I'm being honest, that would have been the case next season.
"We sat down and talked and he agrees with me. He needs a fresh start."
The forward had not started a game for the club since November.