Pegasystems (PEGA) 46th Annual William Blair Growth Stock Conference summary

Company overview and platform differentiation

• Focuses on enterprise workflow automation for large, regulated industries such as banking, insurance, healthcare, and government, supporting complex, high-volume, and regulated processes.

• Offers a highly configurable, low-code platform enabling clients to tailor workflows without extensive coding, supporting both horizontal and industry-specific solutions.

• Holds over 100 industry certifications, ensuring robust security and compliance across global markets.

• Uses a unique case-based licensing model, charging based on workflow usage rather than user count, aligning value with automation delivered.

Deterministic vs. probabilistic workflows and AI integration

• Differentiates between deterministic workflows (structured, repeatable, regulatory-driven) and probabilistic processes (AI-driven, error-tolerant, judgment-based).

• Deterministic workflows are essential for compliance and consistency, while AI is leveraged for probabilistic tasks within structured processes.

• Emphasizes the importance of understanding where AI can be safely applied versus where strict process adherence is required.

Customer adoption, automation, and AI disruption

• Customers in regulated industries rely on the platform for scale, configurability, and security, especially where error rates must be minimized.

• Initial confusion around AI's role in automation has settled, with enterprises recognizing that most core applications require deterministic workflows.

• Clients weigh the risks and costs of building versus buying, with error rates, regulatory needs, and AI's code generation speed being key considerations.