AI-Savvy Boards Drive Superior Performance

Digitally savvy boards once had the edge, but today, only those embracing cutting-edge AI and emerging technologies are seeing the biggest performance gains.

Summary:

Research shows that by 2024, 72% of large companies’ boards met the 2019 definition of “digitally savvy.” Only 26% of boards were savvy in cutting-edge AI and emerging technologies — which gave their companies a significant performance edge over peers. AI-savvy boards’ return on equity was 10.9 percentage points above the industry average, while companies with nonsavvy boards lagged 3.8 points below. Successful boards focus on strategy, defense, and oversight to manage digital complexity.