AI-Savvy Boards Drive Superior Performance
Abstract
MIT CISR research found that by 2024, 72% of large companies’ boards met CISR's 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 non-savvy boards lagged 3.8 points below. The research found that successful boards focus on strategy, defense, and oversight to manage digital complexity.
About the Researchers
Peter Weill, Chairman and Senior Research Scientist, MIT Center for Information Systems Research (CISR)
Stephanie L. Woerner, Director and Principal Research Scientist, MIT Center for Information Systems Research (CISR)
Jennifer Banner, Board Member, Truist Financial Corp., Uniti Group, Inc., and CDM Smith, Inc. and Industry Research Fellow, MIT CISR
MIT CENTER FOR INFORMATION SYSTEMS RESEARCH (CISR)
Founded in 1974 and grounded in MIT's tradition of combining academic knowledge and practical purpose, MIT CISR helps executives meet the challenge of leading increasingly digital and data-driven organizations. We work directly with digital leaders, executives, and boards to develop our insights. Our research is funded by member organizations that support our work and participate in our consortium.