This article advocates for the widespread adoption of digital technologies as the primary method of teaching and learning in higher education institutions. It emphasizes the importance of this transition for several reasons, including the improvement of student retention and the enhancement of educational effectiveness. There is ample evidence to support the notion that digital transformation has greatly increased efficiency, customer relationships, and overall competitiveness in the business sector. However, colleges and universities in the United States have yet to fully embrace digital transformation technologies to enhance teaching and learning for their large student populations. By incorporating innovative technologies like simulation and virtual reality, higher education can significantly enhance the learning experience for students and improve the teaching capabilities of faculty members. Educational institutions can also strategically integrate AI-enabled technologies such as ChatGPT into their programs to provide great benefits to students. This approach aligns with the engagement theory, which promotes educational excellence, innovation, and national progress.