By default, when Auto Update Statistics is set to True, the SQL Server Query Optimizer will automatically update statistics when data has met a threshold of changes (insert, update, delete, or merge) and the estimated rows are now potentially stale. When statistics are stale, execution plans can become suboptimal which can lead to degradation in performance.
This best practice option ensures your statistics stay up to date as much as possible. Each time a cached query plan is executed the Optimizer checks for data changes and potentially generates new statistics. This behavior is exactly what we want, but there is a catch. The caveat to this is that a cached query plan will be “held” while the statistics are updated and will recompile to use the new values before running. This caveat can slow down the execution process dramatically.
The advice Monica provides is generally sound, though there are rare cases when asynchronous statistics updates end up causing more problems than they solve, so test the change first.