In 2019, only 24% of large U.S. company boards were considered digitally savvy, with at least three directors experienced in digital tech, and these boards significantly outperformed peers. By 2024, that number rose to 72%, but being digitally savvy by prior standards no longer guaranteed superior financial results, as digital literacy became basic expectation. An updated definition including generative AI, AI agents, robotics, and sector-specific technologies now shows only 26% of boards meet the threshold for being digitally and AI savvy. These boards outperform others by 10.9 points in return on equity and have substantially higher market caps, highlighting the critical importance of advanced tech expertise. Industry adoption varies widely, with information services and professional services leading, while healthcare, mining, construction, and retail lag behind. Boards excelling in AI focus strategically on using AI opportunities, defending against cyber risks, and overseeing ethical data use. General digital knowledge no longer distinguishes boards; cutting-edge AI and tech fluency drives superior outcomes.
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